New Holland compact tractor with a loader in front of a farm shop, a larger New Holland tractor parked inside

Dickson County Equipment

Can I buy a tractor tax-free in Tennessee?

Tennessee's agricultural sales tax exemption lets approved farmers buy qualifying equipment without paying sales tax at checkout.

Questions about buying farm equipment tax-exempt? We're here to help.

Our teams in Dickson, Clarksville, and Columbia can help you understand the paperwork, find the application, and explain what to bring when you purchase. Call your local store or send us your question.

The Tennessee Department of Revenue approves exemptions. Our staff help you work through the process and get ready for your purchase.

Five ways to qualify. You only need one.

Tennessee's application, Form RV-F1308401 (opens in a new tab), lists five ways to qualify. Open the one that fits you to see what it means and what to send in with the form.

I own 15+ acres classified in Greenbelt

Your county property assessor has classified your land as agricultural under the Agricultural, Forest and Open Space Land Act of 1976, the Greenbelt program. Greenbelt needs at least 15 acres in farm use.

Send with your state application

A copy of the land's Greenbelt qualification.

Acreage by itself isn't one of the five criteria, so 15 acres alone doesn't qualify you. The Greenbelt classification from the assessor does. If your land isn't in Greenbelt yet, one of the four paths below may fit instead.

I sold $1,500 or more of farm products this year

You own or lease agricultural land that produced and sold $1,500 or more of agricultural products during the year. Payments from government programs count toward the $1,500.

Send with your state application

Proof of government payments and/or copies of tax returns showing the income.

I do custom farm work for hire

You're in the business of for-hire custom agricultural services: plowing, planting, harvesting, growing, raising or processing agricultural products, or maintaining agricultural land.

Send with your state application

Copies of your Form 1099s.

I report farming income or expenses on Schedule F

Your federal income tax return includes business activity on IRS Schedule F (Profit or Loss from Farming), or farm rental activity on Form 4835 or Schedule E.

Send with your state application

A copy of Schedule F with your application. For farm rental, a copy of Form 4835 or Schedule E, whichever applies.

I actively produce agricultural commodities but don't fit the others

You can otherwise satisfy the Commissioner of Revenue that you're actively engaged in the business of raising, harvesting or producing agricultural commodities. This covers established farmers who don't fit the first four, and new operations that haven't made a first sale.

Send with your state application

  • A detailed statement of why you qualify for the agricultural exemption.
  • If you've recently begun farming or just acquired the land, also send a business plan with: the date the land was acquired; acres under cultivation and/or the breed and number of livestock; the projected date of your first sale and projected income; and your marketing plan (how you'll sell what you produce).

What will you use the tractor for?

The exemption covers equipment used more than 50% of the time in your farming operation. Say you put 100 hours on a tractor in a year:

Pick how the hours split
  • Moving hay for the cattle operation60 hrs
  • Maintaining the home yard40 hrs

Meets the more-than-50% test

60 of 100 hours is farm work. That is more than half, so with a valid certificate this tractor qualifies.

Not sure how your use adds up? Call your local store or send us your question before you buy.

Submit a question

What would you save on one tractor?

This is the sales tax line on a Tennessee equipment quote: 7% state tax on the whole price, local tax on only the first $1,600 of a single item, and a small extra state tax on the next $1,600. A certificate takes all of it off. Put in a price.

Source: Tennessee Department of Revenue, SUT-6 and SUT-108 (opens in a new tab)

Dickson County EquipmentTax estimate

Assumes a 2.75% local rate and a $1,600 local tax base

State sales tax, 7% on $40,000
$2,800
Local sales tax, 2.75% on the first $1,600
$44
Additional state tax, 2.75% on the portion above $1,600 through $3,200
$44
Estimated sales tax savings if this tractor qualifies$2,888

Illustrative local rate of 2.75% and a $1,600 local tax base. Local rates and limits vary. Implements sold separately are each taxed as their own single article, so their savings are calculated individually.

Apply with the state. Then bring your card to us.

Apply with Tennessee

Apply with Tennessee (opens TNTAP in a new tab)
  1. View Exemption Links
  2. Apply for Sales & Use Tax Exemption

No login is required. The Tennessee Department of Revenue reviews the application and, if approved, mails your certificate with a wallet-sized exemption card.

Prefer paper? Print Form RV-F1308401 (opens in a new tab) and mail it with your documents to Tennessee Department of Revenue, Taxpayer Services Division, 500 Deaderick Street, Nashville, TN 37242.

Bring to the dealership

Any one of these works at the counter:

A pending application alone can't be used for a tax-exempt purchase. Once we have a copy on file, your later purchases go faster.

Send us your question

Ask anything about buying tax-exempt: whether you qualify, how your use adds up, or what to bring. Pick the store you'd like to hear from and we'll get back to you the way you prefer.

Prefer to talk?

Preferred response
We only use this to answer your question.

Renewal, other purchases and common questions

Renewing your certificate and replacing a lost card

Certificates are valid for four years. The Department of Revenue reissues them every fourth year after you confirm you still qualify; new certificates take effect January 1 and expire December 31 four years later, and once new ones go out the old certificate and card can no longer be used. Keep your mailing address current with the Department so the notice reaches you.

Lost your card? Call Taxpayer Services at the Tennessee Department of Revenue, (615) 253-0600. If you still have the paper certificate, a copy of it works at the counter in the meantime. Call (615) 253-0600

Can I buy a UTV or zero-turn mower tax-free?

Yes, if you hold a certificate and the machine is used more than 50% of the time in your agricultural operation. The same use test applies to every machine, so a mower that mostly cuts the yard doesn't qualify.

Does my pickup truck qualify?

No. Automobiles and trucks are excluded from the agricultural exemption no matter how they're used, and fuel for vehicles driven on public roads is taxed too.

Do implements and attachments get the same treatment as the tractor?

Yes. A loader, rotary cutter, box blade or other implement used primarily in your operation qualifies the same way the tractor does. For sales tax, Tennessee treats the tractor and each implement as separate single articles, so when something is not exempt, the tax is calculated on each one individually.

I farm in Kentucky. Can I use my Kentucky exemption in Tennessee?

No. Tennessee doesn't honor other states' agricultural exemptions, but out-of-state farmers can apply for a Tennessee certificate through the same TNTAP application.

Official sources

This page is general information, not tax or legal advice. Eligibility, qualifying purchases, documentation and renewal are set by Tennessee law and administered by the Tennessee Department of Revenue, and the rules can change. Confirm your situation with the Department or a tax professional. Checked against Department of Revenue publications in November 2026.

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Three yards across Middle Tennessee — Dickson, Clarksville, and Columbia. Stop by whichever one’s on your way. Coffee’s usually on.

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