car registering question (Lexington: sales, how much, transfer)

[utahman11]

I live in Nashville and plan to buy a used car in Kentucky, which has 6% sales tax. The car is 21K, how much will I have to pay to get it registered in Tennessee?

[rossc]

In Davidson County it would be 7% sales tax + tile and tags. Sales tax is a killer. 7% on big ticket items like cars is ridiculous.

[utahman11]

ouch! 6% in KY, 7% in TN. I'm driving to KY tomorrow to work on the deal. Might have to work on that price or keep driving that old '02 190K Impala. Many thanks.

[alleycat]

I believe you would just have to pay the difference in tax between Tennessee and Kentucky (you wouldn't be doubled taxed). Plus, at least in Tennessee, big-ticket items are taxed differently than less expensive items. You can visit the state website and get the full story.

Off the top of my head I don't think you'd find it all that much more expensive to buy the car in Kentucky and then register it in Tennessee.

[utahman11]

You're up early. Thanks very much for the information.

[LovnTN]

Sales tax in Tennessee is high because we don't have state personal tax on our wages, so it isn't such an ouch if you remember that.

[rossc]

As an out of state buyer, a dealer in KY should not even charge sales tax. You pay it in TN when you register the car.

[TNkudzu]

rossc is correct.

I have purchased cars and RV’s in Texas, Indiana and NJ. You will pay the Sales Tax in TN or the state you reside in when you register and transfer the title to the car. If you buy from an individual in KY, the state of KY will not get involved. If you buy from a Dealer you will have to sign an affidavit that you are titling it outside of KY. The Dealer may give you a Temporary tag so you can drive it home. I would not pay the KY Sales Tax no matter what the dealer tells you. I don’t like to pay taxes but I live in TN and I rather support TN than KY or any other state.

You MUST Register and Title your car in the state you reside in.

[teebird1012]

The same happened for me when we bought a car in Evansville, Indiana. We reside in Lexington, KY. Indiana taxes did not apply, but we did sign an affidavit saying that we were titling the car outside of Indiana. It's really not a difficult process, you shouldn't have any more trouble titling it in Tennessee than what we had titling it here in Kentucky. On a side note, I'm really looking forward to moving to Nashville in September!

[BNB]

hi teebird1012! I am originally from Lexington (lots of family there) but hubby and I live in California and we are moving to Nashville in April!