Sales Tax Exemption on Automobile Purchased with a VA Automobile Grant

When a veteran uses a federal VA automobile grant to purchase a vehicle, the portion of the purchase price covered by that grant is exempt from Tennessee state sales and use tax.

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Last checked: 2026-05-21

Details

When a veteran uses a federal VA automobile grant to purchase a vehicle, the portion of the purchase price covered by that grant is exempt from Tennessee state sales and use tax. This is a state-level tax benefit applied on top of the federal grant.

Restrictions

Only the grant-covered portion is exempt. Veteran pays tax normally on any amount paid above the grant.

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