AutoTaxCalculatorCar taxes in Georgia: how TAVT works
Georgia TAVT = 7% × fair market value, paid once when the vehicle is titled. For a new car from a dealer, that's the selling price less your trade-in and any rebate. A $40,000 car with a $10,000 trade-in and a $1,000 rebate owes $2,030.
TAVT took effect on March 1, 2013. It replaced two older taxes: the sales tax on the purchase and the annual ad valorem tax owners used to pay with every tag renewal. You pay it every time ownership changes, and when a new resident registers a car in Georgia for the first time. The tax goes to the County Tag Office in the county where you live, and dealers are required to collect it and submit it with your title application.
How Georgia sets fair market value
The base for the tax depends on whether the car is new or used:
- New vehicle: the greater of the retail selling price or the value in the state's motor vehicle assessment manual. The selling price includes delivery, freight, doc fees and similar charges, just as the old sales tax did. That figure is then reduced by your trade-in and by any rebate or cash discount the dealer gives at the sale.
- Used vehicle: the value in the state assessment manual, an average of current wholesale and retail values. Because it blends in wholesale value, it's usually lower than a dealer's retail price.
For a used car, this means the price you negotiate generally doesn't change your TAVT. The manual value does. Use the DOR's TAVT estimator to look up the manual value for a specific VIN, then enter it in the calculator above.
Trade-ins: dealer sales only
The trade-in value stated on the bill of sale reduces the fair market value, but only when you buy from a dealer. If you sell your old car privately and buy another one from a private seller, there's no reduction. On a $30,000 purchase, a $10,000 trade-in at the dealer saves $700 in TAVT.
Reduced TAVT rates
| Situation | TAVT rate |
|---|---|
| Purchase from a dealer or a private seller | 7.0% |
| New resident registering in Georgia for the first time | 3.0% |
| Family transfer of a Georgia-titled car that already paid TAVT (Form MV-16) | 0.5% |
| Inheritance of a car in the TAVT system (Form T-20) | 0.5% |
Some veterans are fully exempt with Form MV-30: those compensated at 100% disability, former prisoners of war, and Purple Heart and Medal of Honor recipients. Qualifying public safety first responders receiving line-of-duty indemnification can exempt up to $50,000 of value across their vehicles in any three-year period.
Worked examples
New $40,000 SUV with a $10,000 trade-in and a $1,000 rebate
- Fair market value: $40,000 − $10,000 − $1,000 = $29,000
- TAVT: $29,000 × 7% = $2,030.00
- Add the $18 title fee and $20 registration: $2,068.00
Private sale: $12,000 paid, $15,000 manual value
- The tax uses the state manual value, not the price: $15,000
- No trade-in reduction on a private sale
- TAVT: $15,000 × 7% = $1,050.00
Moving to Atlanta with a car valued at $25,000
- New-resident rate: $25,000 × 3% = $750.00
- Total with title and registration: $788.00
New to Georgia
New residents must register their vehicles within 30 days of moving. You'll need a Georgia driver's license or ID first, then a completed Form MV-1, your out-of-state title (or Form T-17 if a lender holds it) and proof of Georgia insurance. If you live in Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Paulding or Rockdale County, you also need an emissions inspection before registering.
Cars bought before March 2013
Vehicles purchased before March 1, 2013 generally stay in the older annual ad valorem system. Their owners pay a value-based tax every year with their registration, due by the end of the registration period (the owner's birthday) to avoid a 10% penalty. Non-titled vehicles and trailers also pay annual ad valorem tax instead of TAVT.
Frequently asked questions
Is TAVT the same as sales tax?
No, but it takes its place. Vehicles titled in Georgia under TAVT are exempt from sales and use tax. For a new car, the base was designed to mirror the old sales tax base.
Do I pay TAVT on a leased car?
Yes. For a new leased vehicle, the agreed-upon value in the lease is used in place of the retail selling price.
Why is my used car's TAVT different from 7% of what I paid?
Because Georgia taxes used cars on the state assessment manual value, not the price. The DOR estimator shows that value for your vehicle.
Sources
- Georgia DOR: Vehicle taxes, TAVT and annual ad valorem tax
- Georgia DOR: Title ad valorem tax FAQ
- Georgia DOR: New to Georgia
This calculator gives an estimate. Your County Tag Office calculates the final amount. How we calculate