Gift transfer — Tennessee

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TennesseeTrailerGift transfer

BillOfSaleNow Legal Team

Reviewed against state DMV requirementsLast reviewed: March 20266 min readEditorial policy

What to know about gift transfer sales in Tennessee

If the vehicle's fair market value exceeds the annual gift tax exclusion ($18,000 for 2024 per IRS), the donor must file IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return). The lifetime exemption ($13.61 million in 2024) typically means no tax is owed, but the form is still required. Some states require the word "gift" on the title or a separate gift affidavit to waive use tax.

What to include in your bill of sale

Full legal names and addresses for both buyer and seller.
Trailer make, model, year, VIN, and current mileage.
Agreed sale price, payment method, and transaction date.
Any gift transfer-specific disclosures required in Tennessee.

Seller guidance

Buyer guidance

You will likely owe use tax on the fair market value of the vehicle at registration unless your state exempts immediate family gifts. California, for example, exempts transfers between parents, children, spouses, and domestic partners. Check your state DMV for exemption eligibility.

Tennessee-Specific Note

Tennessee charges 7% sales tax on vehicle purchases, but family transfers receive a reduced title fee of $1. Complete a Vehicle Application (Form RV-F1301701) and indicate the transfer as a gift or family transfer. Qualifying family includes spouse, parent, child, sibling, grandparent, and grandchild.

Legal considerations

Tennessee Legal Requirements

Under federal law, gifts of vehicles exceeding $18,000 in fair market value (2024 annual exclusion) require the donor to file IRS Form 709, though the $13.61 million lifetime exemption means actual gift tax is rarely owed. Most states do not impose a separate state gift tax, but many require a gift affidavit or notation on the title to waive sales or use tax. Check your state DMV for the specific form and eligible family relationships that qualify for the tax exemption.

Source: IRC § 2503(b); IRS Form 709

Tennessee Trailer transfer fees and requirements

In Tennessee, the title transfer fee is $11 and registration costs $26.50 per year. Trailer sales are subject to 7% state sales tax plus local taxes (can total 9.75%). Tennessee does not require notarization for private-party trailer transfers. Emission testing is required in Tennessee — verify the trailer passes before completing the sale.

Emissions testing required in Davidson, Hamilton, Rutherford, Sumner, Williamson, and Wilson counties
Title transfer at county clerk office
Sales tax based on county of purchase

Tennessee sales tax on trailer purchases

Tennessee has a 7% state sales tax rate. 7% state plus local taxes (total up to 9.75%). Private-party trailer sales in Tennessee are subject to sales tax. Sales tax applies to private party vehicle purchases. The title transfer fee is $11.

Trailer market data and safety information

The most common trailer makes in private-party sales are Big Tex, PJ Trailers, Carry-On, Sure-Trac, Load Trail. Average private-party trailer prices range from $1,500–$15,000. Trailers average 1.5 NHTSA recalls per model across categories including Tires, Electrical (lighting), Axle/Suspension.

Safety checkpoints for buying a used trailer

Before completing a trailer bill of sale in Tennessee, verify these safety items:

Inspect hitch coupler and safety chains for wear and proper rating
Check all lighting connections — trailer lights are the #1 reason for roadside stops
Verify axle alignment and tire wear patterns
Test electric or surge brakes if equipped

Trailer insurance and depreciation in Tennessee

Trailer insurance is optional in most states unless financed. Physical damage coverage is $100–$300/year. Utility trailers hold value exceptionally well — quality steel trailers retain 70–80% of value over 10 years. Peak season for private trailer sales is spring through early summer when landscaping and construction picks up, with an average of 14 days on market.

Trailer registration and titling

Trailers are classified as "Utility trailer (weight-class dependent)" for registration purposes. Trailers under 3,000 lbs may not require registration in some states. Over 3,000 lbs requires title and registration in most states. Federal odometer disclosure does not apply to trailers.

Tennessee requirements for gift transfer trailer sales

For trailer gift transfer transactions in Tennessee, the buyer must pay 7% state sales tax plus local taxes (can total 9.75%) and a $11 title transfer fee. Notarization is not required. Odometer disclosure is required.

Emissions testing required in Davidson, Hamilton, Rutherford, Sumner, Williamson, and Wilson counties
Title transfer at county clerk office
Sales tax based on county of purchase

Safety tips for gift transfer trailer transactions

When completing a gift transfer trailer sale in Tennessee, always verify the vehicle against NHTSA recall databases. The most common trailer recall categories are Tires, Electrical (lighting), Axle/Suspension. Check recalls at NHTSA.gov/recalls before signing the bill of sale.

Checklist for gift transfer trailer sale in Tennessee

Establish fair market value (Kelley Blue Book or comparable)
Determine if IRS Form 709 filing is required (value >$18,000 in 2024)
Obtain state-specific gift affidavit or complete the gift section on the title
Confirm state sales/use tax exemption eligibility for family gifts
Notarize the bill of sale or gift affidavit if your state requires it
Complete Vehicle Application Form RV-F1301701
Indicate "gift" or "family transfer" for the reduced $1 title fee
Verify the recipient qualifies as immediate family under TN law

Need the printable workflow?

Use the main Tennessee trailer bill of sale flow when you are ready to generate the completed document.

Open Tennessee Trailer bill of sale

The Private Vehicle Sale Market

17.5M private sales/yr

About 17.5 million private-party vehicle transactions happen in the U.S. each year — roughly 47% of the used market.

Source: Cox Automotive 2024

Frequently asked questions

When should I use the gift transfer page?

Use this page when your trailer sale in Tennessee fits a gift transfer scenario. It walks you through the specific disclosures and details that apply to this type of transaction.

Why does the gift transfer scenario have its own page?

Different sale scenarios — such as private party, dealer, or gifted transfers — have different documentation requirements. This page focuses on what buyers and sellers need for a gift transfer transaction specifically.

What should be included in this bill of sale?

Include the buyer and seller details, vehicle identifiers, sale price, date, signatures, and any notes specific to the gift transfer transaction.

What are the Tennessee fees for a gift transfer trailer transfer?

Tennessee charges a $11 title transfer fee. Registration costs $26.50 per year. Sales tax: 7% state sales tax plus local taxes (can total 9.75%). Notarization is not required for most transfers.

What trailer makes are most commonly sold in Tennessee?

The most popular trailer makes in private-party sales are Big Tex, PJ Trailers, Carry-On, Sure-Trac, Load Trail. Average private-party prices range from $1,500–$15,000.

Do I pay sales tax on a gift transfer trailer sale in Tennessee?

Tennessee has a 7% state sales tax rate. Sales tax applies to private party vehicle purchases

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