Missouri vs Tennessee
Registering a new $35,000 vehicle costs about $2,573 in Tennessee versus $3,470 in Missouri — a $896 first-year advantage for Tennessee.
Cost comparison
| Missouri | Tennessee | Difference | |
|---|---|---|---|
| First-year total All-in cost to register a new $35,000 gas vehicle for the first time, including sales tax, title, and registration. | $3,470 | $2,573 | +$896 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $506 | $59 | +$447 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $2,879 | $2,490 | +$389 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 8.22% | 9.50% | −1.28 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $3,620 | $2,773 | +$846 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $656 | $259 | +$397 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $150 | $200 | −$50 |
How each state structures it
Missouri
Missouri's vehicle costs have an unusual shape: small state DMV fees (typically $33/year registration based on taxable horsepower, $11 title, $11 plate), but a meaningful annual personal property tax assessed by counties at roughly 1.8% effective rate (state average, after the 33⅓% assessment ratio) on the vehicle's NADA value. The property tax is the dominant ongoing cost: a $35,000 vehicle in St. Louis County (~6% county rate) pays about $595/year in property tax alone, dropping as the vehicle depreciates. Sales tax is 4.225% state plus local 0-5.875% — Missouri requires buyers to pay sales tax at their local DOR office within 30 days of purchase, not at the dealer. Missouri is one of about 20 states with no EV surcharge as of 2026. A new $35,000 vehicle in a typical Missouri county runs about $3,535 in first-year costs, with annual renewals around $568.
Tennessee
Tennessee has one of the more distinctive sales tax structures in the US: 7% state tax on the FULL purchase price, plus a "single article tax" of 2.75% on the portion between $1,600 and $3,200 (max $44), plus local sales tax of 2.25-2.75% applied ONLY to the first $1,600 of purchase. The combined effective rate on a typical $35,000 vehicle works out to roughly 7.2% — counterintuitively LOWER than the headline 9.25-9.75% you'd see in retail stores, because local tax doesn't scale with vehicle price. Beyond sales tax: $29/year state registration, county wheel taxes from $0 to $55 (36 of 95 counties have none), $14 title fee, and a stiff EV surcharge of $200/year (rising to $274 in 2027). Tennessee has no state income tax, so vehicle fees and the gas tax carry more weight in funding state operations. A new $35,000 vehicle in Davidson County (Nashville, $55 wheel tax) runs about $2,617 in first-year costs; in a no-wheel-tax county that drops to about $2,562.
What this means for you
- Buying a new car: Tennessee is roughly $896 cheaper than Missouri in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: Tennessee is cheaper to renew annually by about $447/year. Over a 5-year ownership period that's roughly $2,234 in renewal-fee savings alone.
- If you drive an EV: Missouri's EV surcharge ($150/year) is meaningfully lower than Tennessee's ($200/year) — a 25% savings on the EV fee alone.
- Structural differences: Missouri charges an annual ad valorem property tax on vehicles (renewals stay expensive as long as you own the car), while Tennessee does not — over a 10-year hold this can swing thousands of dollars toward Tennessee.
Frequently asked questions
Is it cheaper to register a car in Missouri or Tennessee?
Tennessee is cheaper to register a new $35,000 vehicle: $2,573 first year vs $3,470 in Missouri, and the gap continues into annual renewals.
What is the sales tax difference between Missouri and Tennessee?
Missouri charges 8.22% combined sales tax on vehicles; Tennessee charges 9.50%. On a $35,000 purchase that's $2,879 in Missouri vs $2,490 in Tennessee.
Do Missouri and Tennessee both charge EV registration fees?
Missouri: $150/year EV surcharge. Tennessee: $200/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: MO DOR • TN Dept of Revenue / County Clerks
Data last updated: 2026-05-23