Gifting a Car in Georgia: Taxes, Fees & Rules (2026)
Immediate-family transfers pay a reduced 0.5% TAVT instead of 7% if the vehicle has a Georgia title and TAVT was previously paid (Form MV-16 affidavit). New residents pay 3%. The title fee of $18 still applies. Verified against official Georgia sources on 2026-07-17.
Gift vs. selling for $1: don't use the $1 trick
The old advice to "sell it for a dollar" usually backfires. A $1 sale is still a sale — in states that tax the higher of price or book value, that means tax on the full book value; in others it simply voids the gift exemption you were entitled to use. The documented gift route (affidavits, the right box on the title) is what actually produces $0 tax where an exemption exists.
What you'll still pay in Georgia
Even a fully exempt gift pays the standard title transfer fee of $18. The recipient also takes on normal registration costs going forward. Title within 30 days: after that it's a $10 title penalty plus 10% of the TAVT owed, plus 1% more per month.
Frequently asked questions
Do you pay taxes on a gifted car in Georgia?
Immediate-family transfers pay a reduced 0.5% TAVT instead of 7% if the vehicle has a Georgia title and TAVT was previously paid (Form MV-16 affidavit). New residents pay 3%.
Is it better to gift a car or sell it for $1 in Georgia?
Gift it — properly. A $1 "sale" is still a sale in most states and can trigger tax on book value or invite a review, while a documented gift uses the actual exemption. Immediate-family transfers pay a reduced 0.5% TAVT instead of 7% if the vehicle has a Georgia title and TAVT was previously paid (Form MV-16 affidavit). New residents pay 3%. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Georgia?
The title fee is $18 — that's due on gifts too, even when the tax is exempt. Title within 30 days: after that it's a $10 title penalty plus 10% of the TAVT owed, plus 1% more per month.
Does the IRS tax a gifted car?
Almost never for normal vehicles — car values fall under the IRS annual gift-tax exclusion for most givers, so no federal gift tax or return is required. The state-level rules above are what actually matter.
Verified against official sources (dor.georgia.gov) — last reviewed 2026-07-17. Estimates are informational only.