Georgia (GA) Vehicle Sales Tax & Fees [+ Calculator]
If you’re looking to purchase a new or used vehicle in the state of Georgia, then you should be aware of the state sales tax that you will have to pay.
The sales tax can add thousands of dollars to the cost of the vehicle. For that reason, many people wonder how they can avoid paying car sales tax and if buying a car out of state is an option.
Here’s a look at everything that you need to know about state sales tax on vehicle sales as well as other associated fees.
Understanding Georgia TAVT Video
How Much Is the Car Sales Tax in Georgia?
Georgia does not technically charge a state sales tax on new vehicles.
However, they do charge what is known as a Title Ad Valorem Tax. This is a flat 7% tax on all new vehicle sales after March 1st, 2013 in Georgia that is paid at the time the vehicle is titled. Cars purchased before March 2013 must pay an Annual Ad Valorem Tax.
The rate used to be 6.6%, but was changed on July 1st, 2023
It is calculated from the fair market value of the vehicle, not the purchase price.
If you buy a car out of state, and register it in Georgia, then there is a 3% state sales tax instead of the TAV Tax.
How to Calculate Georgia Tax on a Car
You can calculate the Title Ad Valorem Tax by finding the fair market value of the vehicle and multiplying it by 7%.
For example, imagine you are purchasing a vehicle for $45,000, but the fair market value is $40,000. You would pay 7% on the $40,000 amount, not the $45,000 you paid.
In this example, multiply $40,000 by .07 to get $2,800, which makes the total purchase price, $47,800.
However, if you bought the car out of state for $45,000 and registered it in Georgia, then the state and local tax rates apply. The minimum amount is 3%.
In this example, you would multiply $45,000 by .03 to get $1,200.
Calculate Car Sales Tax in Georgia Example:
- Car Purchase Price: $45,000
- Fair Market Value: $40,000
- TAVT Rate: 7.0%
TAVT: $40,000 * .07
TAVT: $2,800
GA Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
Georgia does not charge a state sales tax on used cars.
However, they do charge a Title Ad Valorem tax of 7% on all used car sales. Like new cars, the amount taxed is based on the fair market value.
Car Sales Tax for Trade-Ins in Georgia
Trade-ins are not subject to sales tax or any other type of taxation in the state of Georgia. In other words, if you have to pay the normal state tax rate (not the TAVT), be sure to subtract the trade-in value from the purchase price before calculating sales tax.
As an example, if you purchase a vehicle for $50,000 and your trade-in is worth $10,000, then you will only be taxed on the $40,000.
Car Sales Tax on Private Sales in Georgia
Georgia does not technically charge a state sales tax on new vehicles. However, they do charge what is known as a Title Ad Valorem Tax. This is a flat 7% tax on all private vehicle sales.
Tax on Rebates & Dealer Incentives
Georgia does tax rebates or dealer incentives. In other words, if you have to pay the normal state tax rate (not the TAVT), be sure to use the original full purchase price when calculating sales tax.
For example, if you purchase a new vehicle for $50,000 and receive a rebate of $4,000, then you will still be taxed on the $50,000.
Georgia DMV & State Fees
Georgia charges the following DMV & state fees:
Vehicle Registration
- Registration Fee: $20.00
- Title Fee: $18.00
Other Fees
- License Plate Renewal: $20.00
Georgia Dealership Fees
- Doc Fees: ~$545 (No Statewide Limit)
For example, if you purchase a new vehicle for $50,000 and receive a rebate of $4,000, then you will still be taxed on the $50,000.
When Tax Is Exempt on Vehicle Sales in Georgia?
New residents do not have to pay the 7% Title Ad Valorem Tax. However, they do have to pay a reduced 3% tax.
Family members do not have to pay the 7% Title Ad Valorem tax on a title transfer. However, they do have to pay a reduced .5% tax.
Certain military veteran residents are exempt from the tax including 100% disabled veterans, former prisoners of war, Medal of Honor winners, and purple heart recipients.
First responders are given up to $50,000 for all registered vehicles in a 3-year period.
Georgia EV Rebates & Incentives
There are currently no Georgia state-specific EV incentives.
Certain utility companies in Georgia may offer reduced rates for charging off-hours. Learn more about EV & Hybrid incentives here.
Tax information and rates are subject to change; please be sure to verify with your local DMV.
