How to Pay Your Tennessee Excise Tax

Tennessee’s excise tax for vehicles is simply your annual registration fee, which usually costs about $17. Click here to learn more!
Written by Macy Fouse
Reviewed by Amy Bobinger
background
In
Tennessee
, the yearly excise tax for vehicles comes in the form of
annual registration fees
, which cost around $17 for the average vehicle.
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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. 

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. 

How to save on car insurance in Tennessee

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auto insurance
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