# Tennessee — Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference

For Tennessee, trade-in credit allowed is full credit, recorded from its source on 2026-08-20.

- **State:** Tennessee _(our reading, not quoted from the source)_
- **Trade-in credit allowed:** full credit _(our reading, not quoted from the source)_

## What the source says

> When an item of tangible personal property is taken in trade as a credit or partial payment on the sale of new or used items, the sales and use tax is computed and paid on the net difference between the sales price of the new or used item sold and any credit actually given for the used item accepted in trade.

## Source

- https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/auto-dealership-manual.pdf

Last verified: 2026-08-20. Review by: 2027-08-20.
Part of [Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference](https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/).