Tax Commissioner's Office | Cherokee County, GA - Where Metro Meets the Mountains

New Motor Vehicle Title Tax 

Effective March 1, 2013, House Bill 386 removed the sales tax and the annual ad valorem tax on newly-purchased vehicles. It replaced these taxes with a new title tax of 7% in 2016. This rate can change each year.

Calculate your title tax here.

The new system for taxing vehicles only applies when the ownership of the vehicle is transferred through a title exchange. All vehicles purchased on or after March 1, 2013 are subject to this new system, regardless of where the vehicle is purchased. Vehicles purchased through a private sale that were previously exempt from sales tax, such as vehicles that are sold between individuals and not through a dealer, will now be subject to the title ad valorem tax.

All other vehicle owners will continue to operate under the current system and pay the annual ad valorem taxes until they no longer hold title to the vehicle.

  • Vehicles transferred from another state to Georgia will be subject to the title ad valorem tax in two installment payments, in addition to the title and registration fees that they were responsible for in the past.
  • Leased vehicles will still be subject to a use tax on the monthly lease payment. The dealership is responsible for paying the title ad valorem tax and may include this cost in the term of the lease.
  • Vehicle titles transferred between family members, including spouses, parents, children, siblings, grandparents or grandchildren, will be handled as follows:
  • Vehicles owned prior to March 1, 2013: The family member who is titling the vehicle has the option to pay the full title ad valorem tax or continue to pay the annual ad valorem tax under the old system.
  • Vehicles purchased on or after March 1, 2013: The family member who is titling the vehicle is subject to a 0.5% title ad valorem tax.
  • Title applications must be processed in the county where the vehicle is to be registered.
  • Salvage vehicles and vehicles donated to charities will pay a reduced title ad valorem tax at a rate of 1%.
  • Certain veterans who were exempt from annual motor vehicle ad valorem tax will also be exempt from the title ad valorem tax.

 

  **An important note to remember when titling a vehicle - motor vehicles are covered under the privacy act in Georgia and no one but the registered owner can process transactions for the vehicle. If the vehicle is in a spouses name you will not be able to process transactions on that vehicle unless you have a limited Power of Attorney.***  

Click here for the Limited Power of Attorney.

     

 

 

 

 

 

 

 

 
 
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