Vehicle Taxes

Vehicle Taxes

Georgia has two concurrent vehicle tax systems as follows:

1. Ad Valorem Tax – Vehicles purchased February 28, 2013 and earlier
2. Title Ad Valorem Tax (TAVT) – Vehicles purchased March 1, 2013 or later with a few exceptions

Vehicles may be registered in one system or another but not both.

 

Ad Valorem Tax

Ad valorem tax is a value tax that is assessed annually and must be paid at the time of registration. Payment of ad valorem taxes is a prerequisite to receiving a tag or renewal decal. Ad valorem taxes are due each year on all vehicles whether they are operational or not, even if the tag or registration renewal is not being applied for. Taxes must be paid by the last day of your registration period (birthday) to avoid a 10% penalty. Tax amounts vary according to the vehicle make and model and the tax district in which the owner resides. Ad valorem tax receipts are distributed to the state, county, schools, and cities. These levying authorities use this revenue to fund their general operations.

 

Title Ad Valorem Tax (TAVT)

Title Ad Valorem Tax (TAVT) became effective on March 1, 2013. TAVT is a one-time tax that is paid at the time the vehicle is titled. It replaced sales tax and ad valorem taxes (annual motor vehicle tax) and is paid every time vehicle ownership is transferred or a new resident registers the vehicle in Georgia for the first time.

Effective January 1, 2020, the new TAVT rate is 6.6% of the fair market value of the vehicle. For values and estimates, use the Georgia Department of Revenue’s TAVT calculator.

 

TAVT Exceptions

  • Non-Titled vehicles and trailers are exempt from TAVT – subject to ad valorem tax
  • New Residents pay TAVT at a rate of 3% (New Georgia Law effective May 27, 2019)
  • Family transfer (Family Affidavit required):
    • If vehicle currently in TAVT system, family member can pay a reduced TAVT rate of .5% of fair market value of vehicle.
    • If vehicle currently in ad valorem tax system, family member has the option of:
      • 1. Staying in ad valorem tax system
      • 2. Paying full TAVT and entering TAVT system
  • Inheritance (Inheritance Affidavit required):
    • If vehicle currently in TAVT system, family member can pay a reduced TAVT rate of .5% of fair market value of vehicle
    • If vehicle currently in ad valorem tax system, family member has the option of:
      • 1. Staying in ad valorem tax system
      • 2. Paying full TAVT and entering TAVT system
  • Non-Resident Military (Service Member Affidavit PT-472NS required)
  • Some Military Veterans are exempt from TAVT (MV-30 Form and Military Documentation required):
    • Disabled Veterans – 100% Service Connected
    • Prisoner of War
    • Purple Heart Recipient
    • Medal of Honor

For a link to the Georgia Department of Revenue's FAQs, please click here

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