Georgia's TITLE AD VALOREM TAX

*Title Ad Valorem Tax is increasing to 7% effective July 1, 2023*

Click here to view Policy Bulletin MVD-2023-02

Georgia’s TITLE AD VALOREM TAX

The annual ad valorem tax, paid on a person’s birthday, will remain for people who owned their cars before 2012, but for everyone else, the law will mean changes to the way vehicles are taxed. For some, it will mean big savings. For others, it will be a big expense.

• Under the law, the fee for all vehicles titled will be 7 percent of the worth of the vehicle. It eventually could climb as high as 9 percent of the vehicle’s worth.
• The old ad valorem tax system will continue to exist for vehicles titled in 2012 or earlier.
• The dealership will pay the title ad valorem tax for people who lease cars. Dealerships could include the cost of that tax in their fees. Leased vehicles are now exempt from sales and use tax on the monthly lease payment.
• People who move into Georgia with a car will have to pay the new tax on any vehicles entering into the state when they register their cars in Georgia. New out-of-state residents will have to pay 3 percent of the vehicle's worth.
• Vehicles passed between immediate family members — spouses, parents, children, siblings, grandparents or grandchildren — will pay a reduced fee of 0.5 percent of the car’s worth to title the vehicle, provided the full one-time title ad valorem tax already has been paid.
• People who were exempt from paying the annual car tax, such as disabled veterans, are exempt from the new tax on one vehicle.
• Vehicles that are older than 1985, and are not required to have titles, are only affected if the owner decides to get a title.
• Vehicles that aren’t titled, such as boats and trailers, aren’t affected by the law.
  
  

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