# Tennessee aircraft 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.

Source: https://www.aerscheduler.com/aircraft-tax/united-states/tennessee
Checked: 2026-10-18

## 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.

> "Tennessee applies a 7% state tax on the total amount of consideration, a local tax on the first $1,600, and a State single article tax rate of 2.75% on the following $1,600."
>
> Tennessee Department of Revenue, [Aircraft-4, How to Calculate Sales or Use Tax on Aircraft Purchase](https://revenue.support.tn.gov/hc/en-us/articles/360059303252-Aircraft-4-How-to-Calculate-Sales-or-Use-Tax-on-Aircraft-Purchase), dated updated April 13, 2021. Checked 2026-10-18.

> "If your purchase was from an individual who is not a dealer or from an out-of-state dealer or individual, you are required to pay tax directly to the Department of Revenue."
>
> Tennessee Department of Revenue, [Aircraft-1, Aircraft Generally Subject to Sales Tax](https://revenue.support.tn.gov/hc/en-us/articles/360059301552-Aircraft-1-Aircraft-Generally-Subject-to-Sales-Tax), dated updated April 13, 2021. Checked 2026-10-18.

## 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.

> "The tax base is the fair market value of the aircraft that is determined using the best information available to the Department in accordance with Tennessee law"
>
> Tennessee Department of Revenue, [Aircraft-9, Aircraft Moved into Tennessee From Another State is Taxable Event](https://revenue.support.tn.gov/hc/en-us/articles/360059752711-Aircraft-9-Aircraft-Moved-into-Tennessee-From-Another-State-is-Taxable-Event-Credit-Allowed-for-Tax-Previously-Paid-in-Another-State), dated updated April 13, 2021. Checked 2026-10-18.

> "Sales tax paid to another state does not eliminate the tax liability in Tennessee. However, Tennessee law allows a credit against the Tennessee liability."
>
> Tennessee Department of Revenue, [Aircraft-9, Aircraft Moved into Tennessee From Another State is Taxable Event](https://revenue.support.tn.gov/hc/en-us/articles/360059752711-Aircraft-9-Aircraft-Moved-into-Tennessee-From-Another-State-is-Taxable-Event-Credit-Allowed-for-Tax-Previously-Paid-in-Another-State), dated updated April 13, 2021. Checked 2026-10-18.

> "An aircraft that is hangered in Tennessee, even if also hangered in another state, may be subject to tax in Tennessee as a taxable import. There is no bright line test in Tennessee for how long an aircraft must be in Tennessee to be taxable in Tennessee."
>
> Tennessee Department of Revenue, [Aircraft-10, Tennessee Resident with Aircraft Domiciled Outside Tennessee](https://revenue.support.tn.gov/hc/en-us/articles/360059341092-Aircraft-10-Tennessee-Resident-with-Aircraft-Domiciled-Outside-Tennessee-Not-Subject-to-Tennessee-Tax), dated updated April 13, 2021. Checked 2026-10-18.

## 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.

> "A lineal relative transfer of an aircraft is exempt from sales and use tax but the transfer must be supported with proper documentation."
>
> Tennessee Department of Revenue, [Aircraft-17, Taxability of Transferring Aircraft to Family Member](https://revenue.support.tn.gov/hc/en-us/articles/360059760951-Aircraft-17-Taxability-of-Transferring-Aircraft-to-Family-Member), dated updated April 13, 2021. Checked 2026-10-18.

> "If the aircraft is purchased exclusively for lease to a flight school, the purchasing entity may obtain the aircraft free from sales tax. However, to qualify for the exemption of resale the purchaser must be registered with the Department of Revenue with an active sales and use account."
>
> Tennessee Department of Revenue, [Aircraft-20, Aircraft Leased Exclusively to Flight School Exempt from Sales Tax](https://revenue.support.tn.gov/hc/en-us/articles/360059762211-Aircraft-20-Aircraft-Leased-Exclusively-to-Flight-School-Exempt-from-Sales-Tax), dated updated April 13, 2021. Checked 2026-10-18.

> "In Tennessee a corporation or multimember LLC is considered a separate legal entity."
>
> Tennessee Department of Revenue, [Aircraft-19, Aircraft Transferred from Owner to Company is Taxable Transaction](https://revenue.support.tn.gov/hc/en-us/articles/360059350012-Aircraft-19-Aircraft-Transferred-from-Owner-to-Company-is-Taxable-Transaction), dated updated April 13, 2021. Checked 2026-10-18.

## 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](https://revenue.support.tn.gov/hc/en-us/articles/360058626751-SUT-42-Leases-and-Capital-Leases), dated updated March 27, 2025. Checked 2026-10-18.

## 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.

> "If the aircraft is purchased exclusively for lease to a flight school, the purchasing entity may obtain the aircraft free from sales tax."
>
> Tennessee Department of Revenue, [Aircraft-20, Aircraft Leased Exclusively to Flight School Exempt from Sales Tax](https://revenue.support.tn.gov/hc/en-us/articles/360059762211-Aircraft-20-Aircraft-Leased-Exclusively-to-Flight-School-Exempt-from-Sales-Tax), dated updated April 13, 2021. Checked 2026-10-18.

## 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](https://www.tn.gov/content/dam/tn/revenue/documents/rulings/sales/21-11.pdf), dated November 17, 2021. Checked 2026-10-18.

> "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](https://www.tn.gov/content/dam/tn/revenue/documents/rulings/sales/21-11.pdf), dated November 17, 2021. Checked 2026-10-18.

> "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](https://www.tn.gov/content/dam/tn/revenue/documents/rulings/sales/21-11.pdf), dated November 17, 2021. Checked 2026-10-18.

## 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.

> "Aircraft are not required to be registered with any Tennessee state government agency."
>
> Tennessee Department of Revenue, [Aircraft-2, How to Register Aircraft in Tennessee](https://revenue.support.tn.gov/hc/en-us/articles/360059301712-Aircraft-2-How-to-Register-Aircraft-in-Tennessee), dated updated April 14, 2021. Checked 2026-10-18.

_Not tax advice. Confirm with the state's revenue department or a CPA before a purchase or a pricing decision._