Georgia does not collect sales tax on a titled vehicle. Instead it charges a one-time tax on the vehicle's fair market value at the moment it is titled, and it is due again whenever ownership changes hands.
This guide explains how fair market value is set for new and used vehicles, when a trade-in reduces the base, the reduced 3% and 0.5% rates, and how the tax differs from the annual ad valorem tax, using the Georgia Department of Revenue's TAVT pages and the policy bulletin that restored the 7 percent rate, read on 29 October 2026.
Title Ad Valorem Tax became effective on 1 March 2013. TAVT is a one-time tax that is paid at the time the vehicle is titled. It replaced sales tax and annual ad valorem tax (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. The current TAVT rate is 7.0% of the fair market value of the vehicle.
The 7 percent rate is not new: Policy Bulletin MVD-2023-02 states that beginning 1 July 2023 the TAVT rate returned to a rate equal to 7 percent of the fair market value of the motor vehicle after a temporary reduction expired. TAVT is calculated by multiplying the fair market value by the rate in effect on the date of purchase.
| Situation | Rate | Fair market value | TAVT |
|---|---|---|---|
| Standard purchase of a used vehicle | 7.0% | $25,000 | $1,750 |
| New resident registering a vehicle for the first time | 3% | $25,000 | $750 |
| Family transfer of a vehicle with a Georgia title and TAVT already paid | 0.5% | $25,000 | $125 |
| Dealer sale: value $30,000 less $10,000 trade-in | 7.0% | $20,000 | $1,400 |
These figures are our arithmetic on the department's rates. The actual fair market value comes from the state assessment manual or the retail price, not from this table. Vehicles not taxed under TAVT are generally taxed under the annual ad valorem tax, which applies to most vehicles not taxed under TAVT or the alternative ad valorem tax.
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