Do you pay a sales tax or registration tax when moving to Georgia with a car? (Atlanta: leasing)

[bmw335xi]

I heard you have to pay tax on the market value of any car you register in Georgia from out of state? Is this true?

I plan to buy a new car, but if that’s true, than I would be better off waiting until we move there.

This brings me to another question, if what I heard is correct, than would you say it’s better to just sell my car before moving and just rent a car when I get to Atlanta?

I don’t want to bring my car, pay taxes on it and then a couple weeks later sell or trade it in for another car and pay taxes again on the new car.

I hope this isn’t too confusing, thank you very much.

[Parnassia]

A moment's Googling found these:

From the horse's mouth:

https://dor.georgia.gov/motor-vehicles

and this:

https://finance.zacks.com/pay-georgi...tate-3723.html

[cwkimbro]

Sort of....

You will pay a 3% TAVT tax on the value of your car at registration when you move here, as of 2019. A car valued at $15,000 will have a $450 registration tax. This is a discounted tax for people moving into the state only.


If you buy a car in Georgia in 2021 it will be taxed at 6.6%. The tax can be included into a car loan payment, but it is a registration tax and not technically a sales tax.

https://dor.georgia.gov/motor-vehicl...ad-valorem-tax


Georgia also removed 2 typical taxes to use this TAVT tax. They removed sales taxes on a car purchase and they removed the annual ad valorem tax, so you won't be taxed each year after. Georgia charges a $20/annual tag fee and that is it.

So if you buy in Georgia there will be a 6.6% tax and then an annual $20/year fee after.

If you buy out of state before moving here, you will pay whatever the local tax rate is (sales, registration, etc...) in that state and then you will pay a 3% tax when registering in Georgia.

And you would have to consider any additional cost in transfer of ownership or renting a car, if you need to.

So you would have to see what the taxes are in your current state to properly compare.

What to watch out for. Prior to 2019 the law had new incoming residents paying the full value of the tax, currently 6.6%, at registration. They were allowed to pay 50% up front and 50% a year later. The law had much criticism, because it is a big sticker shock to be paying for a move and then you find out there is a large tax at registration.

[bmw335xi]

Originally Posted by Parnassia

A moment's Googling found these:

From the horse's mouth:

https://dor.georgia.gov/motor-vehicles

and this:

https://finance.zacks.com/pay-georgi...tate-3723.html

Thank you, yeah I googled, but I want to confirm I’m reading everything correctly as this would make a huge difference for moving ahead whether selling my car here and renting one there or moving there and trading it in for a new one once there. Reading the article you shared it seems like it doesn’t matter whether I’ve only been there 1 day, I would have to pay the tax, and then once again on the new car, so my best option would be to sell it here right before the move.

[bmw335xi]

Originally Posted by cwkimbro

Sort of....

You will pay a 3% TAVT tax on the value of your car at registration when you move here, as of 2019. A car valued at $15,000 will have a $450 registration tax. This is a discounted tax for people moving into the state only.


If you buy a car in Georgia in 2021 it will be taxed at 6.6%. The tax can be included into a car loan payment, but it is a registration tax and not technically a sales tax.

https://dor.georgia.gov/motor-vehicl...ad-valorem-tax


Georgia also removed 2 typical taxes to use this TAVT tax. They removed sales taxes on a car purchase and they removed the annual ad valorem tax, so you won't be taxed each year after. Georgia charges a $20/annual tag fee and that is it.

So if you buy in Georgia there will be a 6.6% tax and then an annual $20/year fee after.

If you buy out of state before moving here, you will pay whatever the local tax rate is (sales, registration, etc...) in that state and then you will pay a 3% tax when registering in Georgia.

And you would have to consider any additional cost in transfer of ownership or renting a car, if you need to.

So you would have to see what the taxes are in your current state to properly compare.

What to watch out for. Prior to 2019 the law had new incoming residents paying the full value of the tax, currently 6.6%, at registration. They were allowed to pay 50% up front and 50% a year later. The law had much criticism, because it is a big sticker shock to be paying for a move and then you find out there is a large tax at registration.

Thank you so much! This is exactly what I was looking for. I appreciate it.

[sedimenjerry]

Originally Posted by bmw335xi

Thank you, yeah I googled, but I want to confirm I’m reading everything correctly as this would make a huge difference for moving ahead whether selling my car here and renting one there or moving there and trading it in for a new one once there. Reading the article you shared it seems like it doesn’t matter whether I’ve only been there 1 day, I would have to pay the tax, and then once again on the new car, so my best option would be to sell it here right before the move.

Yea I was stuck cause I was leasing my car in TX. Couldn't turn it in early without paying fees. But also meant I had to register it here in GA as a lease only to have the least end not even a year later. If you're planning on buying a new car, just go ahead and sell your current car if you can.

[bmw335xi]

Originally Posted by sedimenjerry

Yea I was stuck cause I was leasing my car in TX. Couldn't turn it in early without paying fees. But also meant I had to register it here in GA as a lease only to have the least end not even a year later. If you're planning on buying a new car, just go ahead and sell your current car if you can.

Thanks a lot! I will do that.

[Shikaria]

Well, you'll have to pay some taxes, but these are not sales taxes, not even close.

[Drewgrant]

Originally Posted by Shikaria

Well, you'll have to pay some taxes, but these are not sales taxes, not even close. First of all, you'll have to pay a registration tax for your car and a TAVT tax for your car. These are the direct taxes that you have to pay when moving to any other state. If you want to find out something more specific to Georgia, you have to visit the Georgia IRS website and see if they can help you out. Oh, and by the way, I recommend you have all of your paystubs from the previous years with you. You can generate them on https://www.paystubcreator.net/. This will help you avoid some bureaucracy at the local IRS.

are you sure about that?

[JMatl]

Originally Posted by bmw335xi

Thanks a lot! I will do that.

Surprised (but pleased) you're moving up here! Have you guys outgrown Orlando?