Georgia (GA) Vehicle Sales Tax & Fees [+ Calculator]

Georgia Sales Tax

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?

How Much Is Georgia Sales Tax

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.

Buying out of state does not get you out of it. A Georgia resident who buys a car elsewhere and titles it in Georgia still pays the full 7% TAVT on fair market value. The 3% rate that gets quoted around this is not for out-of-state purchases, it is for people newly moving to Georgia who bring a vehicle with them.

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.

If instead you are moving to Georgia and bringing a car you already own, you pay TAVT at the reduced new-resident rate of 3% of fair market value.

On a vehicle with a $45,000 fair market value that is $45,000 × 0.03 = $1,350.

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

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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 In 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

Tax on Dealer Incentives Georgia

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

Electric Vehicle Fee

Georgia charges an annual licensing fee on vehicles that run solely on electricity, in place of the fuel tax they never pay. It is adjusted every year, and for registrations running July 1, 2026 to June 30, 2027 the amounts are:

  • Non-commercial vehicle: $238.59
  • Commercial vehicle: $357.98
  • Low-speed vehicle: $111.64

It applies whether or not you use an alternative fuel licence plate, and it dwarfs the $20 ordinary registration fee. Plug-in hybrids only pay it if they have elected an alternative fuel plate.

When Tax Is Exempt on Vehicle Sales in Georgia?

Georgia Tax Exemptions

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. Georgia charges electric vehicles rather than subsidising them: an all-electric car pays an annual licensing fee of $238.59 for the year running July 2026 to June 2027, on top of the 7% TAVT you paid at purchase.

Certain utility companies in Georgia may offer reduced rates for charging off-hours, and those are now the only help available: the federal EV tax credit ended on September 30, 2025.

Frequently Asked Questions

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 vehicle sales, based on the fair market value of the vehicle, not the purchase price.

Georgia does not technically charge a state sales tax on used vehicles. However, they do charge what is known as a Title Ad Valorem Tax. This is a flat 7% tax on all used vehicle sales.

A transfer between immediate family members is taxed at a reduced 0.5% of fair market value, but only where the vehicle already carries a Georgia title on which TAVT has been paid, and you have to file Form MV-16 to claim it.

The annual registration fee on a passenger vehicle is $20 per year.

Yes. Trade-ins reduce the sales tax that you would pay on a vehicle. For instance, if you purchase a vehicle for $50,000 and your trade-in is valued at $10,000, then you are only taxed on the $40,000 purchase price.

If you are a new resident, then you 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. If you are a 100% disabled veteran, a former prisoner of war, Medal of Honor winner, or Purple Heart recipient, then you do not have to pay tax on your vehicle.

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