Georgia's sales tax rate and what it covers
Georgia's state sales tax is 4 percent. When you buy something at a store or online, you pay this 4 percent on top of the price. However, most purchases also include a local sales tax added by your county or city, which ranges from 1 to 4 percent depending on where you live. Your total sales tax bill is the state rate plus your local rate combined.
Not everything you buy is taxed. Groceries — food you take home to cook — are not taxed in Georgia. Prescription medications are also exempt. But prepared food, restaurant meals, and non-food items like clothing, electronics, and household goods are all taxed at the combined state and local rate.
Online purchases follow the same rule: if the seller has a physical location in Georgia or meets certain sales thresholds, they must collect and send Georgia sales tax to the state. If they do not, you may owe use tax on that purchase when you file your state income tax return, though most individual shoppers do not report this.
Key Takeaways
- Georgia's state sales tax is 4 percent, and your local county or city adds 1 to 4 percent more, so your total rate depends on your location.
- Groceries and prescription medications are not taxed, but restaurant meals, clothing, and most other goods are taxed at your full combined rate.
- Online sellers must collect Georgia sales tax if they have a physical presence in the state or meet sales volume thresholds set by law.
- You can find your exact local sales tax rate by entering your address on the Georgia Department of Revenue website or asking a local retailer.
How to find your local sales tax rate
Your total sales tax rate depends on your county and sometimes your city. Georgia's state portion is always 4 percent, but the local portion varies. For example, Fulton County adds 3 percent, so shoppers there pay 7 percent total. DeKalb County adds 2.75 percent, bringing the total to 6.75 percent. A county in a rural area might add only 1 percent, for a total of 5 percent.
To find your exact rate, visit the Georgia Department of Revenue website and use their sales tax rate lookup tool. You enter your address, and it shows you the state rate, your county rate, and your city rate if one applies. You can also call your county tax assessor's office or ask a cashier at any store in your area — they will know the rate off the top of their head.
The rate you see on a receipt is the rate that was in effect on the date of purchase. Rates can change, though this happens infrequently. If you are budgeting for a large purchase, use the current rate from the Department of Revenue website.
What is taxed and what is not
Georgia taxes most goods and services, but there are clear exceptions. Food you buy at a grocery store to cook at home — bread, milk, vegetables, meat, cereal — is not taxed. This applies whether you shop at a supermarket, farmers market, or convenience store. The rule is simple: if it is raw food you prepare yourself, there is no sales tax.
The moment that food becomes prepared or ready to eat, tax applies. A rotisserie chicken from a grocery store deli counter is taxed. A sandwich from a restaurant is taxed. A coffee from a café is taxed. Alcohol — beer, wine, and liquor — is taxed at the regular rate. Prescription medications are not taxed, but over-the-counter medicines like aspirin or cold medicine are taxed like any other product.
Services are generally not taxed in Georgia, with some exceptions. A haircut is not taxed. Plumbing repair is not taxed. But certain services tied to tangible goods — like installation of flooring or appliances — may be taxed depending on how the contract is written. If you are unsure whether a service will be taxed, ask the business before you pay.
Sales tax on online and out-of-state purchases
If you buy something online from a company that has a warehouse, office, or store in Georgia, that company must collect Georgia sales tax and send it to the state. This applies to large retailers like Amazon, Walmart, and Target, which all have operations in Georgia. It also applies to smaller online businesses that have a physical presence here.
If you buy from an out-of-state seller with no Georgia location, the seller is not required to collect Georgia sales tax. However, Georgia law says you owe "use tax" on that purchase — it is the same rate as sales tax, just collected differently. In practice, most individual shoppers do not report use tax on their income tax returns, and the state does not pursue individuals for small amounts. Businesses are expected to track and report use tax on their returns.
The rule changed in 2019 when the U.S. Supreme Court decided that states could require online sellers to collect sales tax even without a physical location. Now, most large online retailers collect Georgia sales tax regardless of where they are based. Smaller sellers may not, depending on their total sales volume and the state's rules.
How sales tax is collected and used
When you pay sales tax at a register, the store collects it and holds it temporarily. The store then sends that money to the Georgia Department of Revenue on a schedule set by law — usually monthly for larger retailers, quarterly for smaller ones. The state keeps the 4 percent state portion and sends the local portion to your county or city government.
Local governments use their sales tax revenue for schools, roads, public safety, and other services. Some counties have voted to add an additional local sales tax for a specific project, like a new transit system or school building. These temporary taxes appear on your receipt and are labeled separately so you can see what portion goes where.
Stores do not keep any of the sales tax they collect — it is a pass-through. The store's job is to collect it accurately, report it to the state, and send the money on time. If a store fails to do this, the state can audit them and impose penalties.
Sales tax on specific items and situations
Some purchases have special rules. Used cars sold by a private person are not taxed, but used cars sold by a dealer are taxed. Trade-ins reduce the taxable amount — if you trade in a car worth $5,000 and buy one for $15,000, you pay tax only on the $10,000 difference. Vehicles registered in Georgia are also subject to a separate motor vehicle sales tax handled through the Department of Motor Vehicles.
Clothing is taxed in Georgia, including shoes, hats, and accessories. There is no back-to-school tax holiday in Georgia, so you pay tax on school supplies and clothing year-round. Textbooks are taxed. Digital products like e-books, music downloads, and software are taxed. Streaming services like Netflix or Spotify are taxed in Georgia.
If you are a business buying items for resale, you can provide a resale certificate to avoid paying sales tax. You then collect tax from your customers instead. Nonprofits and government agencies may also be exempt from sales tax in certain situations, but they must register with the state and provide proof of their status.
Frequently Asked Questions
Does Georgia have a sales tax holiday?
Georgia does not have an annual sales tax holiday like some states do. You pay sales tax on clothing, school supplies, and other items year-round. However, some counties or cities may run temporary tax-free promotions for specific purposes, so check with your local government if you are planning a large purchase.
What if a store charges me the wrong sales tax?
If you notice a store charged you an incorrect sales tax amount, ask to speak with a manager right away. Most errors are caught and corrected at the register. If you discover an error after leaving, contact the store with your receipt. Stores are required to charge the correct rate, and most will refund the difference if you can show proof.
Do I pay sales tax on items shipped to another state?
If you buy something in Georgia and have it shipped to an address outside Georgia, you do not pay Georgia sales tax. You may owe sales tax in the state where it is delivered, depending on that state's laws and the seller's obligations there. The seller will determine the tax based on the delivery address you provide.
Are there any items that used to be taxed but are not anymore?
Georgia's tax code changes slowly. Groceries have been exempt for decades. Prescription medications have been exempt for many years. The state occasionally adjusts what counts as a grocery item or medication, but major changes are rare. Check the Georgia Department of Revenue website if you have questions about a specific product category.
How do I know if I owe use tax on online purchases?
You owe use tax on items you bought from out-of-state sellers who did not collect Georgia sales tax. The rate is the same as your local sales tax rate. When you file your Georgia income tax return, there is a line to report use tax, though most individuals leave it blank. If you made significant out-of-state purchases, you can calculate and report the amount, but the state does not typically audit individuals for small use tax amounts.