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In Georgia, there is no statewide sales tax on car sales. Don’t celebrate just yet—Georgia charges what’s known as a Title Ad Valorem Tax (TAVT) which is a 6.6% charge applied to all car purchases.
When buying a car, it’s important to look beyond the sticker price and prepare for additional costs. While you don’t have to worry about sales tax in Georgia, you’ll still be on the hook for a 6.6% title ad valorem tax.
The
car insurance
super app Jerry
has put together a guide to steer you through all there is to know about car tax in Georgia. Let’s break down the numbers. How much is the car sales tax rate in Georgia?
Georgia does not charge a state sales tax on new or used cars. They do, however, charge a 6.6% title ad valorem tax (TAVT). TAVT went into effect on March 1, 2013. It is a one-time tax paid when your vehicle is titled, and it replaced both sales tax and the annual ad motor vehicle tax.
The TAVT is paid each time ownership of a car is transferred or if you are a new resident registering your vehicle in Georgia for the first time.
How are car trade-ins taxed in Georgia?
Many dealerships allow you to trade in an old car and apply the credit to your new car purchase. In Georgia, the trade-in value of your car will be deducted from the price of your new car. The good news is the TAVT will be applied after the trade-in value is deducted.
As an example, if you purchase a vehicle for $40,000 and your trade-in is worth $10,000, then you will only be taxed on the $30,000.
How to calculate sales tax on a car in Georgia
The good news is there is no sales tax on a car in Georgia. The bad news is you still have to pay the TAVT.
Check the Georgia Department of Revenue’s
online tax calculator tool
to help you estimate the total tax rate for your new car. MORE: Car Loan in Georgia 2022
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversExemptions from Georgia car sales tax
In general, all car purchases in Georgia are subject to the TAVT, but there are a few cases where you can apply for an exemption:
- New residents can pay a reduced tax of 3% rather than the full 6.6% TAVT
- Family members do not have to pay the 6.6% TAVT when transferring their car to other family members, but they still need to pay 0.5% of the fair market value of the vehicle
- Certain military veterans are exempt from the TAVT including 100% disabled veterans, former prisoners of war, Medal of Honor winners, and purple heart recipients
- Public Safety-First Responders are allowed a TAVT exemption on a maximum of $50,000 fair market value combined for all vehicles registered in three years
To find out whether you’re eligible for an exemption and get detailed instructions on the TAVT, check out
the DDS website
. MORE: Foodie road trip Georgia
How to estimate Georgia tax, title, and registration fees
The TAVT isn’t the only extra cost to consider when shopping for a car in Georgia. You’ll also need to factor in title and registration fees, along with the cost to transfer your license plates and the documentation fee charged by most dealerships.
Here’s how all the additional costs associated with car purchases in Georgia break down:
Cost | Average cost |
|---|---|
Title ad valorem tax | 6.6% |
Registration fee | $20 |
Title fee | $18 |
Documentation fee | $545 |
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversThe documentation fee or "doc fee” dealerships charge is used to pay for the costs associated with preparing and filing the sales contract and related documents. These fees are separate from the taxes and DMV fees listed above.
The average doc fee in Georgia is $545. Because these fees are set by the dealers and not by state law, they tend to vary based on the dealership.
MORE: Is car insurance tax deductible?
How to find affordable car insurance in Georgia
Once you’ve processed all the other payments and fees, there’s still one major expense left: purchasing Georgia car insurance for your new ride! On average, car insurance in Georgia is a bit more expensive compared to other states, but you can still land a great rate with
Jerry
. Using Jerry is super easy and convenient! All you need to do is download the app, input your information, and then wait just 45 seconds as Jerry searches for personalized quotes from 50+ top insurance companies. Jerry users save an average of $887 a year on car insurance!
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FAQ
How much is sales tax on a used car in Georgia?
There is no sales tax on a used car in Georgia, but there is a 6.6% tax called the title ad valorem tax (TAVT) that will apply.
Reviewed by Jessica Barrett.
- How much is the car sales tax rate in Georgia?
- Exemptions from Georgia car sales tax
- How to estimate Georgia tax, title, and registration fees
- How to find affordable car insurance in Georgia
- FAQ
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