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Aircraft tax · United States

Tennessee aircraft sales and use tax

Tennessee charges 7 percent state sales or use tax on aircraft, plus local tax and the state single article tax on limited amounts, including on private sales. Dry rentals are taxed, aircraft parts generally are, and there is no state aircraft registration.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Tennessee?

Taxed. 7 percent state tax on the total consideration, plus local tax on the first $1,600 and a 2.75 percent state single article tax on the next $1,600. A purchase from an individual or out-of-state seller is taxable too, and the buyer pays the Department directly.

Do you owe use tax on an aircraft bought outside Tennessee?

Depends. Bringing an aircraft into Tennessee is a taxable import, taxed on its fair market value, with credit for sales tax paid to another state. There is no set number of days: an aircraft hangared in Tennessee, even part time, may be taxable, and the owner must prove an aircraft based elsewhere stayed elsewhere.

What aircraft sales tax exemptions does Tennessee have?

Depends. Transfers to a spouse, sibling, parent, child, grandparent or grandchild are exempt with documentation. An aircraft bought only to lease to a flight school can be bought tax free for resale by a buyer with an active sales and use tax account. A transfer from an owner to a corporation or multimember LLC is taxable.

Are aircraft rentals taxed in Tennessee?

Taxed. Sales and use tax is due on leases and rentals of tangible personal property, which Tennessee defines as handing over possession or control without an operator. A dry aircraft rental is taxable; a rental that comes with the owner's pilot is not a lease under that definition.

  • A lease or rental is defined as any transfer of possession or control of tangible personal property, without providing an operator, for a fixed or indeterminate term for consideration. Sales and use tax is due on the sales price/ purchase price on all leases or rentals of tangible personal property or computer software in Tennessee.

    Tennessee Department of Revenue, SUT-42, Leases and Capital Leases · document dated updated March 27, 2025 · checked October 18, 2026

Is flight instruction taxed in Tennessee?

Not clearly published. The Department publishes no guidance on whether flight instruction, or the aircraft time inside a lesson, is taxed. It does say an aircraft bought only to lease to a flight school can be bought tax free for resale.

Are aircraft parts and maintenance labor taxed in Tennessee?

Depends. Aircraft parts are generally taxable. Repair of an aircraft based outside Tennessee is exempt if it leaves within thirty days of completion and the work is done under a supplemental type certificate or, for transport category aircraft, by an OEM-authorized facility. Parts for aircraft under 12,500 pounds are taxable even for out-of-state owners.

  • There is no general exemption for aircraft replacement and repair parts.

    Tennessee Department of Revenue, Letter Ruling 21-11 · document dated November 17, 2021 · checked October 18, 2026

  • The aircraft and aircraft components must have their situs outside of Tennessee and be removed from Tennessee within thirty days from the completion of repair and refurbishment services.

    Tennessee Department of Revenue, Letter Ruling 21-11 · document dated November 17, 2021 · checked October 18, 2026

  • There is no exemption from Tennessee sales and use tax for airplane replacement and repair parts delivered to a repair person in Tennessee for use on aircraft with a certified maximum take- off weight of less than 12,500 pounds, that are purchased by an airplane owner with a situs outside of Tennessee and removed from Tennessee within thirty days after delivery to the repair person.

    Tennessee Department of Revenue, Letter Ruling 21-11 · document dated November 17, 2021 · checked October 18, 2026

Does Tennessee register or tax aircraft every year?

Not clearly published. Tennessee does not require aircraft to be registered with any state agency, so there is no state registration fee. The Department's aircraft guidance does not say whether counties tax aircraft as personal property.

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works

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