How vehicle tax works in Georgia
Georgia is different from every other state on this site: there's no sales tax on a car. Instead, you pay Title Ad Valorem Tax (TAVT), a one-time tax due when the vehicle is titled. It replaced both sales tax and the yearly ad valorem tax for vehicles from March 1, 2013, and the current rate is 7.0% of fair market value.
For a new car, fair market value is the greater of the selling price or the state assessment manual's value. That value is then reduced by your trade-in (dealer purchases only) and by any rebates or cash discounts from the selling dealer. Because the calculator can't see the state's value, it uses the price you enter.
Worked example
With no trade-in or rebate, the TAVT on the same car would be 7% of $35,000, or $2,450.
Georgia rules to know
- TAVT, not sales tax. One 7% rate statewide, paid once at titling, so there's no local rate to enter.
- Fair market value. For new vehicles, the higher of the price or the state's value.
- Dealer trade-ins count, private-sale trade-ins don't.
- Dealer rebates and cash discounts reduce the taxable value.
- Fees are separate. Title and registration fees aren't included.
Financing a car in Georgia
TAVT is paid once, at titling. If you roll it into the loan, you'll pay interest on it too; paying it upfront saves that interest. Compare both in the main car loan calculator, and see how the payment fits your pay with the Georgia paycheck calculator.
Trade-in or private sale in Georgia?
A trade-in at the dealer lowers the value used for TAVT, saving 7% of the trade-in's value: $700 on a $10,000 trade-in. If you sell the old car privately and buy from a dealer without a trade-in, you lose that reduction, so a private sale needs to bring in more than about $10,700 to come out ahead.
Remember that TAVT uses fair market value. For a new car it's the higher of the selling price or the state's assessed value, so a big discount below that value won't lower the tax. Your dealer's paperwork will show the value used.