Ad Valorem Tax
What ad valorem tax is, how assessment ratios, exemptions and millage rates combine, Georgia's 7% vehicle title tax, and a calculator.
Ad valorem tax calculator
What ad valorem tax means
"Ad valorem" is Latin for "according to value": the tax is a percentage of what the property is worth, rather than a flat fee. Property tax on homes, land, business equipment and, in many states, cars and boats is ad valorem.
How it's calculated
Tax = (fair market value × assessment ratio − exemptions) × millage ÷ 1,000. One mill is $1 of tax per $1,000 of assessed value. Georgia's own example: property is assessed at 40% of fair market value, so a $100,000 house has a $40,000 assessed value, and at 25 mills the tax is $1,000 (Georgia DOR). Homestead and senior exemptions reduce the assessed value before the millage applies.
Vehicle ad valorem tax (Georgia TAVT)
Georgia replaced annual car tax and sales tax for vehicles bought since March 2013 with a one-time title ad valorem tax of 7.0% of the vehicle's fair market value, paid when you title it. A $30,000 car owes $2,100. Other states tax cars annually as personal property tax. Work out your home's bill with the property tax calculator.
Common questions
What does ad valorem tax mean?
A tax based on the value of property, such as property tax.
How do you calculate ad valorem tax?
(Fair market value × assessment ratio − exemptions) × millage ÷ 1,000.
What is the Georgia TAVT rate?
7.0% of the vehicle's fair market value, paid once when titled.
Sources
- Georgia DOR: Title ad valorem tax and annual ad valorem tax
- Georgia DOR: Property tax millage rates
- Georgia DOR: Property tax valuation
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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.