1. What is Georgia Motor Vehicle Tax?

Georgia charges a 6.6% ad valorem (based on value) tax on motor vehicles when purchased or brought into the state. This tax is based on the fair market value of the vehicle.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( FMV \) — Fair Market Value of the vehicle (USD)
• \( 6.6\% \) — Georgia's ad valorem tax rate

Explanation: The tax is calculated as 6.6% of the vehicle's fair market value at the time of purchase or when first registered in Georgia.

3. Importance of Vehicle Tax Calculation

Details: Knowing the tax amount helps buyers budget for vehicle purchases and ensures proper registration in Georgia. The tax must be paid before obtaining a Georgia title and license plate.

4. Using the Calculator

Tips: Enter the vehicle's fair market value in USD. This is typically the purchase price or the value from a recognized pricing guide like Kelley Blue Book.

5. Frequently Asked Questions (FAQ)

Q1: What is considered fair market value?
A: FMV is generally the purchase price or the retail value from pricing guides like Kelley Blue Book or NADA.

Q2: Are there any exemptions?
A: Some vehicles (like those transferred between spouses) may qualify for exemptions. Check with Georgia DOR for details.

Q3: When is this tax due?
A: The tax is due when you first register the vehicle in Georgia or when ownership is transferred.

Q4: Does this replace annual property taxes?
A: No, Georgia also has annual ad valorem taxes on vehicles, separate from this one-time title tax.

Q5: How is FMV determined for used cars?
A: For used cars, FMV is typically the purchase price or the value from an official pricing guide adjusted for condition.