Georgia's sales tax rate and what it covers
Georgia's state sales tax is 4 percent. Most counties add a local sales tax on top of that, which ranges from 1 to 4 percent depending on where you live. Your total sales tax bill is the state rate plus your county's rate — so if you live in a county with a 3 percent local tax, you pay 7 percent total at checkout.
Sales tax applies to most goods you buy in stores: clothing, groceries, electronics, furniture, and household items. It does not apply to services like haircuts, car repairs, or medical visits. Some items have special rules — prescription medications are not taxed, but over-the-counter drugs and vitamins are.
The tax is calculated on the sale price before any discounts or coupons are applied. If you buy something for $100 and use a $10 coupon, you pay sales tax on $90, not $100.
Key Takeaways
- Georgia's state sales tax is 4 percent, and your county adds 1 to 4 percent on top of that, making your total rate between 5 and 8 percent.
- Sales tax applies to most goods but not to services, prescription medications, or certain groceries depending on how they are packaged.
- The tax is charged on the final sale price after coupons and discounts are subtracted.
- Online purchases from out-of-state sellers are subject to Georgia sales tax if the seller has a physical presence in the state or meets federal thresholds.
- Businesses collect and send sales tax to Georgia's Department of Revenue, not directly to individual counties.
Which Georgia counties have the highest local sales tax rates
Local sales tax rates vary significantly across Georgia's 159 counties. Some counties charge 1 percent, while others charge up to 4 percent. The combined state and local rate ranges from 5 percent in the lowest-tax counties to 8 percent in the highest.
Counties with higher local rates include Fulton County (Atlanta area), DeKalb County, and Cobb County, where the total rate is typically 8 percent. Rural counties and smaller municipalities often have lower combined rates, sometimes as low as 5 percent. The rate you pay depends entirely on which county you make your purchase in, not where you live.
If you buy something in one county and take it home to another, you pay the sales tax rate of the county where the purchase happened. Online purchases are taxed based on where the seller is located or, in some cases, where the item is shipped.
What items are exempt from Georgia sales tax
Certain items do not have sales tax in Georgia. Prescription medications filled by a licensed pharmacist are tax-free. Unprepared food items sold in grocery stores — like raw meat, produce, bread, and milk — are not taxed. However, prepared foods, restaurant meals, and food bought at convenience stores are taxed.
Medical equipment and supplies prescribed by a doctor may be exempt, depending on the item. Durable medical equipment like wheelchairs and oxygen tanks are typically not taxed. Over-the-counter medications, vitamins, and supplements are taxed as regular goods.
Services are generally not subject to sales tax in Georgia. This includes haircuts, plumbing repairs, legal advice, and medical services. However, if you buy a product as part of a service — like paint that a contractor applies to your house — the product itself may be taxed.
How online purchases are taxed in Georgia
Online purchases from sellers with a physical location in Georgia are subject to Georgia sales tax. If you buy from Amazon, Walmart, or another major retailer that has warehouses or offices in the state, you pay Georgia sales tax on your order.
Out-of-state sellers without a Georgia location must collect sales tax if they meet federal thresholds set by the Supreme Court. As of 2024, most online retailers collect sales tax on orders shipped to Georgia, even if the seller is based elsewhere. The tax rate applied is based on the delivery address in Georgia.
If you buy from a very small out-of-state seller that does not collect Georgia sales tax, you may technically owe "use tax" on that purchase when you file your state income tax return. In practice, most individuals do not report these purchases, but the obligation exists under Georgia law.
Who collects and where Georgia sales tax goes
Retailers and online sellers collect sales tax at the point of sale and send it to the Georgia Department of Revenue. Businesses file sales tax returns monthly, quarterly, or annually depending on their sales volume. The state then distributes the local portion of the tax to each county based on where the sale occurred.
The state keeps the 4 percent state portion and uses it for general state operations. County governments receive their local tax share and use it for schools, roads, public safety, and other county services. Some counties dedicate their local sales tax to specific projects like transportation or infrastructure.
Businesses are responsible for collecting the correct rate based on the delivery address or location of the sale. If a business collects the wrong amount, it is the business's responsibility to correct it, not the customer's.
Sales tax on specific purchases in Georgia
Groceries are taxed differently depending on how they are sold. Unprepared food — raw ingredients you cook at home — is not taxed. Prepared foods, hot foods, and items from a deli counter are taxed at the full rate. A rotisserie chicken from a grocery store is taxed; a raw chicken is not.
Clothing and shoes are taxed at the full rate in Georgia. There is no clothing exemption or back-to-school tax holiday. Accessories like belts, hats, and scarves are also taxed.
Gasoline is taxed, but the tax is built into the per-gallon price you see at the pump. You do not see a separate sales tax line item on a gas receipt. Motor vehicles are subject to sales tax, and the tax is typically collected when you register the vehicle with the Georgia Department of Motor Vehicles rather than at the dealership.
Frequently Asked Questions
Does Georgia have a sales tax holiday?
Georgia does not have an annual sales tax holiday for back-to-school or other shopping events. Some states offer these, but Georgia does not. However, certain items like prescription medications and unprepared groceries remain tax-free year-round.
What is the difference between sales tax and use tax?
Sales tax is collected when you buy something. Use tax is a tax on items you buy from out-of-state sellers who do not collect Georgia sales tax. You are supposed to report and pay use tax on your state income tax return, though most individuals do not. The rate is the same as sales tax.
Do I pay sales tax on items I return?
No. When you return an item and receive a refund, the retailer refunds the sales tax you paid. If you exchange an item for a different one, you pay sales tax only on the difference in price, if any.
Is sales tax charged on shipping costs?
It depends on the retailer and the item. Some retailers include shipping in the taxable price; others do not. Online retailers are not required to tax shipping costs in Georgia, but many do. Check your receipt to see whether shipping was taxed.
What if a business charges me the wrong sales tax amount?
Contact the business and ask for a correction. If the business overcharged you, they should refund the difference. If you believe a business is consistently charging the wrong rate, you can report it to the Georgia Department of Revenue, but the refund comes from the business, not the state.