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.
Exemptions 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.
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 |
The 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.
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.
FAQ
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How much is sales tax on a used car in Georgia?
John Pickhaver is an insurance writer with more than seven years of experience writing for the web, print, and screen. John’s mission is to create clear, concise content that drivers can use to save money on car-related expenses. John has written over 100 articles for Jerry on topics including vehicle specs and reviews of luxury car interiors. In addition to writing for Jerry, John has created content for several television shows, including SNL and news media publications.
Jessica Barrett is a senior insurance writer and editor with 10 years of experience in the automotive and travel industries. A specialist in car insurance, car loans, and car ownership, Jessica’s mission is to create comprehensive content that car owners can use to manage their costs and improve their lives. As a managing editor for a team of writers and insurance specialists, Jessica has edited over 2,000 articles for Jerry on topics ranging from local insurance shopping tips to refinancing car loans with bad credit. Before joining Jerry as a senior content editor in 2021, Jessica created visual content for clients such as Expedia, Vivid Seats, Budget Direct Car Insurance, Angie’s List, and HomeAdvisor. Her content was published in Business Insider, Forbes, Apartment Therapy, and the BBC.
