In Georgia, there is no statewide sales tax on car sales. Don\u2019t celebrate just yet\u2014Georgia charges what\u2019s known as a Title Ad Valorem Tax (TAVT) which is a 6.6% charge applied to all car purchases.<\/p>\n\n\n\n
When buying a car, it\u2019s important to look beyond the sticker price and prepare for additional costs. While you don\u2019t have to worry about sales tax in Georgia, you\u2019ll still be on the hook for a 6.6% title ad valorem tax.<\/p>\n\n\n\n
The car insurance<\/a> super app Jerry<\/a> has put together a guide to steer you through all there is to know about car tax in Georgia. Let\u2019s break down the numbers.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Check the Georgia Department of Revenue\u2019s online tax calculator<\/a> tool to help you estimate the total tax rate for your new car.<\/p>\n\n\n\n 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:<\/p>\n\n\n\n To find out whether you\u2019re eligible for an exemption and get detailed instructions on the TAVT, check out the DDS website<\/a>.<\/p>\n\n\n\n The TAVT isn\u2019t the only extra cost to consider when shopping for a car in Georgia. You\u2019ll 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.<\/p>\n\n\n\n Here\u2019s how all the additional costs associated with car purchases in Georgia break down:<\/p>\n\n\n\nHow much is the car sales tax rate in Georgia?<\/h2>\n\n\n\n
How are car trade-ins taxed in Georgia?<\/h3>\n\n\n\n
How to calculate sales tax on a car in Georgia<\/h3>\n\n\n\n
Exemptions from Georgia car sales tax<\/h2>\n\n\n\n
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How to estimate Georgia tax, title, and registration fees<\/h2>\n\n\n\n