TN Used Car Sales Tax

Hey Guys...

I just sold my 03 Tacoma not too long ago. I am using all those proceeds to purchase another vehicle. What is the best way to minimize the taxes on the new vehicle I purchase? Is there a way I can show the DMV that it was a trade or how would that work? THank you.

 

In MA, you pay tax based on actual $$ paid or book, whichever is higher.

If you buy from a dealer, it is based on actual $$ paid.

If you trade directly, the amount of the trade is not taxed.

 

I believe in TN you pay sales tax on the difference in the sale price of your old truck and the purchase price of your new truck. That said, again I believe, both transactions need to happen within 30 days of each other or you forfeit and pay on the total purchase price.

I'd look it up to be safe. I'm just going from memory from certain states I've bought and sold vehicles.