What is the auto sales tax in Georgia?

Answer 1

Effective March 1, 2013, Georgia Sales Tax will no longer be charged on vehicle purchases. It has been replaced by the Title Ad Valorem Tax (TAVT) which is 6.5% for 2013, 6.75% for 2014 and 7.0% for 2015. The law allows the TAVT to be increased up to 9.0% in 2016 and subsequent years, but only if required to make budget.

The TAVT will apply to all vehicle transactions, including private or person-to-person sales. New residents moving into Georgia will also be required to pay the TAVT when they apply for their Georgia tag and title.

At the current rate of 6.5%, car buyers will be paying about the same amount as Sales Tax at the time of purchase. But the awesome thing is that you will no long pay Ad Valorem Tax based on your vehicle's value each year when you buy your tag! Ad Valorem on a $25k vehicle could easily cost $400+ for the first few years and, adding insult to injury, it was due on your birthday when you bought your new tag!

After the TAVT has been paid on the vehicle once, your tag will only cost $20 per year to renew! The Georgia Department of Revenue has an online calculator that illustrates how much you will save depending on how long you plan to keep the vehicle. For example, if I bought a $30k car today, I would pay 6.5% TAVT at the dealer. If I expect to keep it for 7 years, I will save more than $2400 because I won't pay Ad Valorem tax at each tag renewal!!!

I doubt that private sellers/buyers or folks moving into the state will be happy with the new law. But for everyone else who buys a new or used car, it will save a LOT of money in the long run!