Does Georgia charge sales tax on cars?

Not in the traditional sense. For vehicles titled after 2013, Georgia replaced sales tax and the annual ad valorem tax with a one-time Title Ad Valorem Tax (TAVT) of 7% of the vehicle's fair market value, paid when you title the car.

Does a trade-in reduce the tax?

Yes, when you trade in at a licensed dealer. Georgia subtracts the trade-in allowance from the purchase price before applying the 7% TAVT, which can save hundreds of dollars on the tax.

What value is the 7% applied to?

For dealer sales it is generally the agreed price less trade-in. For private sales and some used cars, Georgia uses its own fair market value tables, so the taxable amount may differ from what you actually paid.

Do private-party purchases pay TAVT?

Yes. Even buying from a private seller, you pay the 7% TAVT when you title the vehicle, based on Georgia's fair market value. Private sales used to be exempt from sales tax, but TAVT closed that gap.

Are there exemptions or reduced rates?

Immediate-family transfers of an already-titled Georgia vehicle pay a reduced 0.5% TAVT. New residents titling an out-of-state car also pay TAVT. This tool estimates the standard 7% case and is not tax advice.

Georgia Car Sales Tax Calculator

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Buying a car in Georgia works differently from most states: there is no ordinary sales tax on the vehicle. Instead you pay a one-time Title Ad Valorem Tax (TAVT) when you title it. This calculator applies the 7% rate, your trade-in credit, and dealer fees so you know the real tax bill.

How it works

TAVT replaced both vehicle sales tax and the old annual ad valorem tax:

taxable value = purchase price - trade-in allowance
TAVT          = taxable value * 7%
total at DMV  = TAVT + dealer/doc fees

The trade-in subtraction applies only to dealer sales. For private and some used purchases, Georgia may use its own fair market value rather than your price.

Example

You buy a $30,000 car and trade in your old one for $8,000. The taxable value is $22,000, so TAVT is 7% = $1,540. Add a $599 dealer doc fee and you owe about $2,139 in tax and fees at titling — and no further annual ad valorem tax.

Notes

This is an estimate of the standard 7% TAVT. Reduced family-transfer rates, Georgia’s fair market value tables for used cars, and county or doc-fee differences may change the figure. Confirm at dor.georgia.gov before you buy.