Tennessee variant. This is a Tennessee-specific version of the Auto Loan Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Auto Loan Calculator.
Financing a car in Tennessee means budgeting for both the loan payment and the state's $1,373 average annual auto insurance premium.
Auto loan + ownership costs in Tennessee
On a $35,000 vehicle with 10% down, you'd finance $31,500. At 7% over 5 years, that's about $624/month.
Tennessee drivers pay $1,373/year on average for insurance - about $114/month - plus the state's 9.55% combined sales tax on the purchase.
About taxes and housing in Tennessee
Tennessee levies no state income tax on wages, having fully repealed its tax on interest and dividend income in 2021.
Tennessee's effective property tax rate is relatively low near 0.67%, with median home values around $320,000.
Tennessee's economy includes music and tourism in Nashville and Memphis, automotive manufacturing, and healthcare.
Worked example: $35,000 car in Tennessee
Loan $31,500 at 7% for 5 years → $624/month. Insurance ≈ $114/month. Combined monthly cost of ownership ≈ $738 before fuel and maintenance.
Quick reference
- State income tax: No state income tax (eliminated Hall tax in 2021)
- State sales tax: 7% (plus 2.55% avg local)
- Median home value: $320,000
- Median household income: $67,631
- Effective property tax rate: 0.67%
- Avg auto insurance: $1,373/yr
Frequently Asked Questions
How much is car insurance in Tennessee?
The Tennessee average is $1,373/year, or about $114/month.
What's a typical car payment in Tennessee?
On a $35,000 car financed at 7% over 5 years, roughly $624/month.