Georgia's state sales tax is 4 percent

Georgia charges a 4 percent state sales tax on most retail purchases. This is the base rate that applies statewide. However, most people pay more than 4 percent because counties and cities add their own local sales taxes on top of the state rate.

The total you pay at checkout depends on where you are in Georgia. A purchase in Atlanta will have a different total tax rate than the same purchase in rural areas, because local tax rates vary by location. Your receipt shows the combined rate, but only the 4 percent portion goes to the state.

Key Takeaways

  • Georgia's state sales tax rate is 4 percent, but the total tax you pay includes local taxes added by your county and city.
  • Combined sales tax rates across Georgia range from 6 percent to over 8 percent depending on your location.
  • Groceries, prescription medications, and medical equipment are exempt from Georgia sales tax.
  • Some services like haircuts, repairs, and labor are taxed differently than goods, and the rules vary by type of service.

How local taxes stack on top of the state rate

When you buy something in Georgia, you pay the 4 percent state tax plus whatever local tax your county and city charge. Counties can add up to 3 percent, and cities can add up to 2.5 percent. Most counties and cities do not charge the maximum, so the actual local rate varies widely.

For example, Fulton County (which includes Atlanta) has a combined local rate of 4.5 percent, making the total sales tax 8.5 percent. In other counties, the combined local rate might be 2 percent, bringing the total to 6 percent. You can find your specific local rate by entering your address on the Georgia Department of Revenue website or by asking a cashier.

What is and is not taxed in Georgia

Not everything you buy is subject to sales tax in Georgia. Groceries — food you prepare at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food, restaurant meals, and food eaten on premises are taxed at the full rate.

Prescription medications are not taxed. Over-the-counter medicines like aspirin and cold remedies are taxed. Medical equipment such as wheelchairs, canes, and diabetic supplies are exempt. Clothing is taxed in Georgia, unlike in some other states.

Services are handled differently. A haircut is taxed. Repairs to tangible goods — fixing a car, repairing a phone — are taxed. Labor and installation charges are usually taxed. However, some services like professional services (accounting, legal advice) are not subject to sales tax.

Sales tax on online and mail orders

Online retailers are required to collect Georgia sales tax on purchases shipped to Georgia addresses, regardless of where the retailer is located. This applies to most major retailers. The tax rate that applies is the rate for the delivery address, not where the retailer is based.

If you order from a retailer that does not collect Georgia sales tax, you may owe use tax on that purchase. Use tax is a parallel tax that applies to goods brought into Georgia that were not taxed at purchase. Most people do not pay use tax voluntarily, but it is technically owed.

Sales tax on vehicles and large purchases

Vehicle purchases in Georgia are subject to sales tax. The tax applies to the purchase price of the vehicle and is collected at the time of registration with the Georgia Department of Motor Vehicles. If you buy a used car from a private seller, you still owe sales tax when you register it.

Trade-in value is subtracted from the purchase price before tax is calculated. If you buy a car for $20,000 and trade in a vehicle worth $5,000, you pay sales tax on $15,000, not the full $20,000.

How to find the exact tax rate for your location

The Georgia Department of Revenue maintains a sales tax rate lookup tool on its website. You enter your street address, and the tool returns the exact combined state and local rate for that location. This is the most reliable way to know what you will pay.

You can also call your county tax assessor's office or your city government to ask for the current rate. Rates can change when local governments pass new tax measures, so checking before a large purchase is useful if you want to know the exact amount.

Frequently Asked Questions

Is clothing taxed in Georgia?

Yes. Georgia taxes clothing at the full sales tax rate. Unlike some states that exempt clothing, Georgia treats it as a regular taxable good. This applies to all clothing items, including shoes and accessories.

Do I pay sales tax on groceries?

No. Unprepared food you buy to cook at home — groceries — is not taxed. Prepared food, restaurant meals, and food eaten on premises are taxed. The distinction is whether you are buying ingredients or a finished meal.

What is the highest sales tax rate in Georgia?

The highest combined rate is in areas where the county and city both charge the maximum local rates. This can reach just over 8 percent. The lowest rates are in areas with minimal local taxes, around 6 percent. Your specific rate depends on your exact address.

Do I owe sales tax on items I buy online?

Most online retailers collect Georgia sales tax on orders shipped to Georgia addresses. The tax rate applied is the rate for your delivery address. If a retailer does not collect it, you technically owe use tax, though this is rarely enforced for individual purchases.

Is sales tax included in the price shown online?

No. Prices shown online and in stores are usually before tax. Sales tax is added at checkout. The amount varies by location, so the final price depends on where the item is being shipped or purchased.