Finite-state tree automata are a well-studied formalism for representing term languages. This paper studies the problem of determining the regularity of the set of instances of a finite set of terms with variables, where each variable is restricted to instantiations of a regular set given by a tree automaton. The problem was recently proved decidable, but with an unknown complexity. Here, the exact complexity of the problem is determined by proving EXPTIME-completeness. The main contribution is a new, exponential time algorithm that performs various exponential transformations on the involved terms and tree automata and decides regularity by analyzing formulas over inequation and height predicates.