Georgia Car Sales Tax: Everything You Need To Know
Source: Pixabay
It isn’t insignificant to invest in a vehicle. Most people save for years, carefully calculating their budget and determining the ideal car for what they can afford. Many people forget about the additional fees added to a car’s price tag, including the sales tax, which differs by state. If you live in Georgia, you might wonder - what is the Georgia car sales tax rate?
If you’re interested in learning more about the Georgia car sales tax, you’ve come to the right place. Read on to learn more about the tax rate in Georgia, how to calculate the number, and if there are any exemptions for the Georgia vehicle tax rate. The more you know about these numbers, the easier it will be to determine how much your next vehicle will cost.
What Is The Georgia Car Sales Tax Rate?
It’s critical to understand the Georgia car sales tax rate. This state is very different from others, which might catch some individuals off-guard if they are unprepared.
According to getjerry.com, there are no car sales taxes in Georgia, making it one of the few to remove this fee from the purchase process for a vehicle. However, there is another tax to consider that acts as a sort of sales fee - the title ad valorem tax, or TAVT.
The title ad valorem tax accounts for 6.6% of the purchase price for a vehicle. It is a singular fee, paid when the car is registered for the first time. This tax first appeared in 2013 to replace the sales and annual ad motor vehicle tax with a single, easily payable price.
There are cases where this tax must be paid again. If the title for the car transfers, the new owner must pay the TAVT. If you are a new resident and want to register your car again for the first time, you must pay.
If you trade in your vehicle, it’s a different story. Let’s discuss the trade-in tax process for those considering an alternate route to the traditional purchasing process.
FEEL SECURE IN THE CAR YOU CHOOSE
You don’t want to buy a car - you want to get the best deal on the car you’re looking for. The CoPilot app will notify you if there’s a similar vehicle in your area at a better price, so you’re always certain you got the best deal available.
Car Trade-In Taxes
Dealerships across the country permit interested drivers to trade in their older vehicles, taking away some of the cost of their replacement. According to getjerry.com, Georgia allows drivers to put the value of their old car towards the cost of their new option.
The title ad valorem tax still applies to vehicles purchased with a trade-in. However, it doesn’t apply until the value of the older car is removed from the new option. The result is a much lower fee for your investment.
For example, let’s say you trade in a vehicle valued at $10,000 for a car that costs $40,000. Your new vehicle would cost $30,000 out of pocket, and you would add the 6.6% title ad valorem tax based on the $30,000.
If you’re interested in purchasing a vehicle in Georgia, you may want to estimate the sales tax. Let’s discuss how to calculate this number for better preparation before such a large investment.
Calculating Georgia Car Sales Tax
It’s helpful to know how much you have to pay before heading in and completing the paperwork for your new vehicle. If you want to estimate the sales tax portion, we have the information you need.
To estimate, you should complete the following steps:
- Jot down the price of the car
- Multiply that number by .066
This number is your tax, which you can add to the vehicle price.
If you don’t want to do the math by hand, there is a title ad valorem tax calculator on georgia.gov. This tool permits you to input all the necessary information, press a button, and receive an estimation for your sales tax in moments.
There are a few cases where individuals may be exempt from the car tax. We’ll discuss who qualifies next.
Are There Exemptions From Georgia’s Car Tax?
There are exemptions with every tax, and the same applies to the title ad valorem tax on Georgia vehicles. Some people don’t have to pay the tax, whether because of who they are or due to the age of their vehicle.
Here are a few examples of individuals exempt from Georgia’s car tax:
- Disabled veterans
- Vehicles purchased and registered before 2012
- Those who were exempt from paying previous taxes
These people do not have to pay the title ad valorem tax.
If in doubt, reach out to your local DMV to determine what you do and do not have to pay for your vehicle. Most people are responsible for paying, but some may be free from this fee.
There are other potential fees to consider on the side of this tax. Let’s talk about them.
IS GAP INSURANCE WORTH IT?
Gap insurance can prevent you from making payments on an already-totalled car, but is gap insurance worth it? We break down what gap insurance is, if it’s worth it, and more - simply and with plenty of examples.
Other Fees To Consider
The TAVT is not the only additional cost to add to the car’s cost. There are a few more to note.
Here are a few additional fees to consider:
- Title applications fees
- Mailing fees
- Special handling fees
- Emission inspections
- Research fees
- Penalties
- Insurance fines
These will add to the total.
It’s critical to consider everything when estimating how much a vehicle will cost. The more aware you are, the easier it will be to determine the proper amount to save for your Georgia car.
THE BEST USED LUXURY CARS ON THE MARKET
Buying a used or CPO luxury car is one of the smartest buys you can make - you can get a lot of car for not much money. You can pick up a three-year-old luxury car for about half of what you’d pay new. Check out this list of the best used luxury cars on the market to find the best deals.
Final Thoughts
It’s critical to consider the Georgia car sales tax before investing in a vehicle in the state. The price tag is one thing, but additional taxes and fees will drastically change the price. An affordable car may shift out of your price point when additional fees and costs are added to the initial tag. Intelligent buyers should calculate these numbers first/
We hope this information was helpful! The more you know about the Georgia car sales tax, the easier it will be to determine how much you need to pay for your vehicle. It isn’t an insignificant decision to purchase a machine. The better your grasp on your price point, the calmer you can be in the signing room for your new car.
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. Only see cars five years or newer with low mileage — CoPilot Compare is the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
