Georgia's New Car Tax

All cars bought on or after 3/1/2013 will be exempt from sales tax and the annual ad valorem tax. Instead you will pay a one-time 6.5% title ad valorem tax based on the value of the vehicle. The rate goes up to 6.75% in 2014 and 7% in 2015. It can never go above 9% per statute. You also can opt into the new law if you bought a vehicle 1/1/2012 through 2/28/2013 by paying any difference if any between what you've already paid in sales tax and ad valorem tax and the new 6.5% rate beginning 3/1/2013. There is a calculator on the GA Dept of Revenue website that can help you decide. You have until 1/1/2014 to decide whether to opt in to the new tax. I believe it will be advantageous for those eligible to opt in since most county sales tax rates alone exceed 6.5%. This new tax does not appear to be deductible as personal property tax since it is not charged on an annual basis so that is one downside. Overall this is a great deal for Georgia's taxpayers.