Georgia’s new car tax at a glance

February 28, 2013 

Georgia’s new car tax at a glance

• Tax rate on vehicle sales: 6.5 percent of market value, rising to 6.75 percent in 2014 and 7 percent in 2015.

• Applies to all vehicle sales beginning March 1.

• Vehicle owners who bought between Jan. 1, 2012, and Feb. 28, 2013, can opt into the new system. That must be done by Dec. 31, 2013, at local tag offices.

• Vehicle sales between individuals are now subject to tax, payable at county tax offices before the vehicle can be registered to its new owner.

• Vehicles transferred into Georgia will be taxed in two installments, in addition to existing title and registration fees.

• Leased vehicles will still be subject to a use tax on the monthly payment. Dealerships may include the title ad valorem tax cost in the lease terms.

• For transfers between family members, the person titling the vehicle can pay the new tax or stay in the old system for vehicles owned before March 1, 2013. For those bought after that date, the person titling the vehicle pays a one-time 0.5 percent title ad valorem tax.

• Salvaged and donated vehicles will pay a 1 percent title ad valorem tax.

• Veterans exempt from the current annual tax also will be exempt from the new tax.

Source: Association County Commissioners of Georgia

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