Each vehicle you have registered in Georgia is subject to Ad Valorem Tax. Ad Valorem Tax is a property tax based off the value of your vehicle.
The Georgia Department of Revenue determines the value of your vehicle every year based on current fair market and wholesale values. These values come from several public market guides (like Kelly Blue Book, the National Automobile Dealers Association Guide (NADA Guide)).
Currently, there are two tax systems: Title Ad Valorem Tax and Annual Ad Valorem Tax. Vehicles may be registered under one of the tax systems, but not both.
Title Ad Valorem Tax (TAVT)
Title Ad Valorem Tax (TAVT) became effective March 1, 2013 after the Georgia General Assembly passed HB386 in the 2012 Legislative Session.
TAVT is a one-time, per owner tax that is collected at the time the vehicle is titled. This tax applies to all title ownership changes, purchases or vehicles being brought into the state of Georgia by residents or new residents. Currently, TAVT is 7%* of the retail value, assessed value established by the Georgia Department of Revenue, or "clean retail" value shown by the NADA. Vehicles subject to TAVT are exempt from sales tax.
*TAVT rates are set by the Georgia Department of Revenue. TAVT rates will remain 7% throughout 2016, 2017 and 2018. The rates may increase in 2018 or 2022 when the rates are evaluated. TAVT rates are capped, by law, at 9.0%. See the DOR's Policy Bulletin for more information.
You are under TAVT if you:
Are a new resident to Georgia and have not registered your vehicle in Georgia
Purchased your vehicle after March 1, 2013
Your taxes are due when you file for a Georgia title at your local Motor Vehicle Division Office. All of the TAVT will be collected then.
You can calculate your Title Ad Valorem Tax due using the Georgia DOR's TAVT Calculator.
Instead of paying taxes when you renew your registration, you only pay tag fees. When you renew, you need a passing emissions inspection, Georgia identification and current Georgia insurance.
Exceptions to TAVT Payments
If you are a new Georgia resident, you may pay half of the TAVT instead. The remaining half is due in 12 months. You will not receive your title until you have paid 100% of the taxes due.
If you are purchasing your vehicle from a dealership, the dealership will charge you the TAVT at the dealership. Do not leave your dealership without paying the TAVT. You cannot pay the TAVT on behalf of the dealership.
If you are purchasing your vehicle from a family member and their vehicle is under TAVT, you can pay a reduced rate. If their vehicle is under Annual Ad Valorem Tax, you can keep paying annual ad valorem tax or you can pay the full TAVT amount for the vehicle. If you want to pay the reduced TAVT rate or continue paying Annual Ad Valorem Tax, you and your relative must complete and notarize a Affidavit to Certify Immediate Family Relationship (MV-16).
If you are in the military, active duty and stationed in Georgia, you may request exemption from TAVT using a Military Annual Ad Valorem Tax Exemption (PT-471) form and certifcation from your Commanding Officer. To qualify, you must have a home of record in another state, be stationed in Georgia and you cannot already have a homestead exemption in Georgia.
If you purchase a vehicle with a model year between 1963 – 1985, and you decide to apply for a title for that vehicle, you may pay a reduced rate.
Annual Ad Valorem Tax
Annual Ad Valorem Tax applies to non-titled, or non-motorized vehicles and vehicles purchased prior to March 1, 2013. Annual Ad Valorem Tax is collected when you renew your registration. Vehicles subject to Annual Ad Valorem are also subject to sales tax.
How Annual Ad Valorem Taxes Are Calculated
Ad valorem taxes are calculated using the following formula:
(Fair Market Value x 0.4) x (Millage Rate/1,000) = Ad Valorem Tax
The first part of the formula, (Fair Market Value x 0.4), describes how the assessed value of your vehicle is calculated. The Georgia Department of Revenue assesses all vehicle values for tax purposes each year. Assessments are by law based upon 40% of the fair market value for your vehicle.
A mill is 1/10 of 1 cent or $1 per $1,000 of assessed value. When we publish the millage rate, we are describing the number of mills. When we calculate taxes, we divide the number of mills by 1,000 to convert mills into whole dollars.
The millage rate is approved by each taxing authority. Therefore the individual millage rate for each taxing authority will be different.
The county Board of Commissioners sets the millage rate for county taxes, the county Board of Education sets the millage rate for county school taxes and the city authorities determine the rate for city taxes. These rates are generally set and approved in late July.
Because of this, the amount of taxes you owe will change depending on where you live. Therefore, it is very important you keep your residential address up to date so your registration renewal bills are correct.
Taxes on First Registration
For vehicles subject to annual ad valorem tax, a determination is made when you first register your vehicle as to whether or not taxes are due for the current year. In general, taxes are due if you own a vehicle on what would be your due date.
Exceptions to Annual Ad Valorem Tax Payments
If you purchase a non-TAVT vehicle within 59 days of your registration renewal deadline or after, taxes will not be due for that year. The same applies for new residents. If you move to Georgia within 59 days of your renewal deadline or after, taxes will not be due for that year.
If you purchase a vehicle and the last owner already paid the taxes for the year, taxes will not be due.
If you purchase a vehicle from a relative who did not pay current taxes, or taxes are due from previous years, you are responsible for paying those taxes.
If you are in the military, active duty, and stationed in Georgia, you may request exemption from Annual Ad Valorem Tax using a Military Annual Ad Valorem Tax Exemption (PT-471) form and certifcation from your Commanding Officer. To qualify, you must have a home of record in another state, be stationed in Georgia, and you cannot already have a homestead exemption in Georgia. You must submit this form each year when you renew.
Taxes on Recurring Registrations
Each year, taxes are due on your registration's deadline in addition to existing tag fees. When you renew, you need a passing emissions inspection, Georgia identification, and current Georgia insurance.
Keep in mind, if you are not using a vehicle, taxes are still due for that vehicle. Taxes will continue to be due for that vehicle until you notify us that you do not own the vehicle anymore.
If you are planning to, or cannot, use a vehicle for an extended period of time, you can cancel your registration. Cancelling your registration removes the insurance requirement for that vehicle.
However, when a registration is under cancelled status, you cannot drive that vehicle. You will get a ticket if you do!