Between income, sales, and property taxes, tax talk can get confusing fast. Unfortunately, Tennessee residents have to be familiar with all the state taxes they’ll need to pay—because the penalties for not paying them can be costly.

Luckily, you’ve got

Jerry

here to sort through all the tax legalese so you don’t have to. As the trusted

car insurance

broker and expert, we’ll go over the details of Tennessee’s excise tax, like what it is, how much it costs, and what happens if you don’t pay it. We’ll also show you how to cut down on your

Tennessee car insurance

costs so that excise tax doesn’t hurt as much!

Find out if you can reduce your monthly car payments in minutes

* checking your rate won’t affect your credit score

Check your rate

* checking your rate won’t affect your credit score

What is an excise tax in Tennessee?

In Tennessee, general excise taxes are collected on a handful of consumer goods, like alcohol, gasoline, cigarettes, cell phones, and motor vehicles. Different from the

Tennessee car sales tax

, the car excise tax includes the registration fee and title fee on the sale of a motor vehicle.

Unlike other states’ vehicle excise taxes, you have to pay this tax to the Tennessee Department of Transportation directly, and they’ll send documentation as proof that you paid the fees.

In general, excise taxes are applied to manufactured goods—especially ones that could be harmful to health or the environment, like alcohol or cigarettes. In many states, vehicles fall under this category due to emissions. In Tennessee, however, there is no specific annual excise tax for vehicles. Instead, the excise tax is repackaged as the annual registration and title fees, per

Title 55 of the Tennessee Code

In general, the state vehicle registration fee will cost $16.75 for non-electric cars/motorcycles and $23.75 for Class B vehicles, which includes passenger motor vehicles and motor homes. However, this fee is waived until July 2023. That said, you may still have additional county-specific fees depending on where you live.

When it comes time to renew your registration (i.e. pay your annual excise tax), you can do so online with the

Tennessee Department of Revenue

MORE: Tennessee electric vehicle incentives

Penalties for nonpayment

Unlike other taxes, proof that you paid Tennessee’s registration fee is pretty obvious since the updated tag is smack dab on your license plate for the world to see. Since this tax is under the jurisdiction of the Tennessee Department of Transportation, however, that means a failure to pay will lead to a non-moving violation—and a fine. The fine amount will vary depending on where you’re stopped and how long your registration has been expired, but it shouldn’t be more than $300.

Your registration must be renewed by the last day of the month listed on your license plate sticker, but after that, you’ll have 90 days to renew before you can be fined. In most cases, you’ll receive a notice in the mail six weeks in advance to remind you to renew. Try not to leave it for the last minute, though—if you wait more than 90 days, you’ll have to start the

registration process

from the start.

MORE: How to get a temporary license plate in Tennessee

How to avoid excise tax in Tennessee

Since all drivers have to register their vehicles to drive in Tennessee, there’s no way to get out of paying the excise tax—and there are no exemptions. Paying your annual registration fee is required for all drivers, and it’s important to avoid driving with expired registration so you can keep a

clean driving record

and avoid expensive fines.

MORE:

Gifting a car in Tennessee

How to save on car insurance in Tennessee

The cost of

auto insurance

in Tennessee tends to be about average compared to other states…but you could still be overpaying for coverage. If you want to check out other quotes to look for a cheaper policy, the

Jerry

app is the quickest—and most thorough—way to do it.

All you have to do is download Jerry’s

trustworthy comparison shopping app

and enter your basic information. In a matter of 45 seconds, Jerry analyzes real-time quotes from 55+ insurance partners and delivers the best options straight to your fingertips. These aren’t just random quotes, though—they’re tailored to your specific profile, including your driving history, credit score, and demographics.

Once you find the most affordable premium, just tap to start the sign-up process. Jerry’s trusty agents will handle the paperwork of switching policies so you can start saving ASAP. In fact, average users save over $800 a year on coverage!

“I would 11/10 recommend
Jerry
. I was originally quoted $700+ for insurance for my new car, but by using Jerry I got my payments down to $320 a month. They also have a great support team ready to answer any questions!” —Tobias F.

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