Georgia's statewide sales tax rate is 4 percent

Georgia charges a 4 percent sales tax on most retail purchases. This is the base rate that applies statewide. However, your total sales tax bill is usually higher because counties and cities add their own local taxes on top of the state rate.

When you buy something in Georgia, you pay state tax plus local tax combined. The combined rate ranges from 6 percent to 10.5 percent depending on where you shop. A $100 purchase might cost $106 in one county and $110.50 in another, even though both are in Georgia.

Key Takeaways

  • Georgia's state sales tax is 4 percent, but your actual rate includes county and city taxes added on top.
  • Combined sales tax rates in Georgia range from 6 percent to 10.5 percent depending on your location.
  • Most tangible goods are taxed, but groceries, prescription medications, and some medical equipment are exempt.
  • You can find your exact local rate by entering your address on the Georgia Department of Revenue website or asking a retailer.

How local taxes add to the state rate

Georgia allows counties to add a local sales tax of up to 3 percent, and cities can add an additional tax. Most counties charge between 1 and 3 percent on top of the state 4 percent. Some cities add another 0.5 to 1.5 percent. The combination of all three layers determines what you actually pay at checkout.

For example, Fulton County (which includes Atlanta) charges 3 percent local tax, bringing the combined rate to 7 percent. DeKalb County charges 2.5 percent locally, for a combined rate of 6.5 percent. Chatham County (Savannah) charges 2 percent locally, for a combined rate of 6 percent. These rates can vary even within the same metro area.

Some cities within counties also have their own additional local option sales tax. This means a city might add 1 percent on top of the county and state rates. Always check your specific city and county combination to know the exact rate where you live or shop.

What is and is not taxed in Georgia

Most items you buy in stores are subject to Georgia sales tax. Clothing, electronics, furniture, household goods, and most services are all taxed. However, Georgia exempts certain categories from sales tax entirely.

Groceries and food purchased for home consumption are not taxed in Georgia. This includes bread, milk, vegetables, meat, and other food items you buy at a grocery store. Restaurant meals and prepared foods are taxed. Prescription medications are also exempt from sales tax. Over-the-counter medicines like cold medicine or pain relievers are taxed, but prescription drugs are not.

Medical equipment and supplies have varying rules. Prosthetics, wheelchairs, and certain diabetic supplies may be exempt, but the rules depend on the specific item and how it is classified. If you use medical equipment regularly, ask the retailer or check with the Georgia Department of Revenue to confirm whether a particular item is taxed.

Finding your exact local sales tax rate

Your exact sales tax rate depends on your street address, not just your city or county. The Georgia Department of Revenue maintains a sales tax rate lookup tool on its website where you can enter your address and see the combined state, county, and city rate that applies to you.

You can also call a local retailer or your county tax assessor's office and ask for the combined rate. Many retailers print the rate on receipts. If you are shopping online and the seller is based in Georgia, they should charge you the rate for your delivery address, not their location.

Sales tax on online and out-of-state purchases

If you buy something online from a Georgia-based retailer and have it shipped to your Georgia address, you pay Georgia sales tax based on your delivery location. If you buy from an out-of-state retailer and have it shipped to Georgia, the retailer may or may not charge you sales tax depending on their size and sales volume in Georgia. Large retailers like Amazon now charge sales tax on most items shipped to Georgia.

If an out-of-state retailer does not charge you sales tax at purchase, you may owe Georgia use tax on that item. Use tax is essentially the same as sales tax and is meant to prevent people from avoiding tax by buying out of state. Most people do not pay use tax voluntarily, but it is technically owed. The rate is the same as the sales tax rate for your location.

Special sales tax situations in Georgia

Certain purchases have special tax treatment. Motor vehicles are subject to sales tax, but the rate and rules differ from regular retail tax. Trade-ins reduce the taxable amount. If you buy a car for $20,000 and trade in a vehicle worth $5,000, you typically pay tax only on the $15,000 difference.

Rental cars are taxed at a higher rate than regular sales tax in Georgia. The state charges an additional 3 percent tax on car rentals beyond the regular sales tax, making the total tax on a rental much higher than on a purchase. Hotel rooms are also subject to a separate hotel tax in addition to sales tax in many Georgia cities.

Services like haircuts, repairs, and consulting are generally not subject to sales tax in Georgia, though some specific services may be taxed. Labor charges for repairs are usually not taxed, but if you buy parts and labor together, only the parts are taxed.

Frequently Asked Questions

What is the sales tax rate in Atlanta?

Atlanta is in Fulton County, which has a combined sales tax rate of 7 percent (4 percent state plus 3 percent local). Some areas of Atlanta may have an additional city tax, bringing the rate to 7.5 percent or higher. Check your specific address on the Georgia Department of Revenue website to confirm.

Do I pay sales tax on groceries in Georgia?

No. Groceries purchased for home consumption are exempt from sales tax in Georgia. This includes bread, milk, produce, meat, and other food items from grocery stores. Restaurant meals and prepared foods are taxed.

Is sales tax the same everywhere in Georgia?

No. Sales tax rates vary by county and city. The state rate is 4 percent, but local rates range from 2 to 6.5 percent depending on location, making combined rates between 6 and 10.5 percent. Your exact rate depends on your street address.

Do I have to pay sales tax on items bought online?

If the online retailer is based in Georgia or is a large seller, they typically charge you Georgia sales tax based on your delivery address. Smaller out-of-state retailers may not charge tax at purchase, but you technically owe use tax on those items to Georgia.

Why is my sales tax different from the county rate?

Your city may have an additional local option sales tax on top of the county rate. For example, your county might charge 2 percent, but your city adds another 1 percent, making your total local tax 3 percent. Always check your specific address to see all layers of tax.