If a vehicle was gifted to me, do I still need to pay sales tax? No, sales tax will not be paid. Customers can complete a gift affidavit which certifies that the vehicle was gifted. May 30, 2020 22:58 Related articles If I sell my car to my sibling, is it subject to sales tax? Can a business (LLC) gift a vehicle to an individual? What is needed to register a vehicle in the state of Tennessee? Who is eligible to transfer a vehicle for the deceased, if there's no will, surviving spouse, and no children? When a Tennessee resident purchases a used vehicle from another Tennessee resident, how long does the purchaser have to title/register before operating the vehicle on public roads?