How is automobile sales tax figured at Nissan of LaGrange for Georgia and Alabama residents?

Sales tax is a nearly inevitable part of purchasing a new Nissan car, truck or SUV, and since 99% of our customers live in Georgia and Alabama we’d like to explain how sales tax is figured when you purchase a vehicle from us.

In Georgia – 

On new cars you pay a 7% state sales tax (technically a “one time ad-valorem”) on new and used vehicles regardless of where the vehicle is registered in the state. The sales tax is figured on the price of the new car less rebates, minus any trade.


$20,000 Nissan and $10,000 trade = $700 sales tax

$20,000 Nissan and no trade = $1400 sales tax

Remember that when trading your vehicle that you are actually getting the amount your car is worth plus that value comes off your taxable amount. In our example above you get $10,000 plus save $700 in sales tax for an achieved value to you of $10,700.

On used vehicles, the state of Georgia has set up a website for taxable values, here is the link – Georgia One-Time Ad-Valorem Calculator for used vehicles. As with new cars you also get a credit for the value of your trade.

In Alabama – 

Sales tax on automobiles sold to Alabama residents is a little tougher to explain. We usually collect 4.5% since this seems to be the average around the state. If the taxes are less you get money back, and if they are higher you will need to pay the difference. If you purchase your vehicle during hours that your local tax office is open we can call them and get an exact amount. We’ve seen rates as low as 3.5% up to 7%, depending on where the car is registered. Amounts can range greatly even in the same county.

Alabama residents also pay an ad-valorem on their vehicles depending on when their licence plate renews. We do not collect this tax which is based on when your licence plate was issued.

Like Georgia you do get a tax credit for the value of your trade, reducing the amount of taxes you need to pay when you trade your current car.

This is a general explanation and doesn’t explain every scenario. If you have any concerns about sales or ad-valorem taxes please call your local tax office. They have the final say in all tax matters.

Nissan of LaGrange, Georgia offers new Nissan cars, trucks, SUVs and crossovers to LaGrange, Newnan, Columbus, Auburn, the Valley, and Atlanta. We also offer Genuine Nissan Service and Maintenance in our Auto Repair Shop. Nissan of LaGrange should be your first stop for a new or used vehicle, oil changes using Genuine Nissan Oil Filters and factory recommended oil, brake service, car battery sales, tires, and auto glass replacement. Nissan of LaGrange where “You Come First!” Always open at can also reach us at 706-884-1744.





Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s