Georgia state seal

GeorgiaSales Tax

A Complete Guide For Businesses

State Rate
4%

Local Tax
yes

Phone
(877) 423-6711

General requirements

Georgia is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the gross receipts of the retail sale or lease of tangible personal property (TPP) and certain services
  • For manufacturers, purchases used for production aren’t taxed
  • For distributors, items purchased for resale aren’t taxed

Businesses may file online at the Georgia Tax Center or file a paper return using Form ST-3.

You’re required to file and pay electronically if you owe more than $500.00. You must file a return even if no tax is due.

Rates

The general state tax is 4% plus applicable local rates. Total rates by jurisdiction range from 6% to 8.9%.

How food is taxed

The 4% state tax is waived for food and food ingredients sold for off-premises consumption. Prepared food is taxed at the full state and local rate.

Nexus in Georgia

In general, the conditions for qualifying as a “dealer” and establishing nexus in Georgia include:

  • Maintaining an office or other work sites in the state, including warehouse or distribution center
  • Maintaining inventory, whether in a warehouse or otherwise, in the state
  • Physically soliciting business in the state, including through a representative
  • Owning, renting, or operating income-producing properties in the state
  • Selling through an affiliate who is a Georgia dealer
  • Importing or manufacturing products for sale or use in Georgia
  • Paying commision to a Georgia resident when they refer customers to you (if sales from the referrals are more than $50,000 in a 12 month period)

Filing schedule

Tax returns are due monthly unless a written request to change the filing frequency has been approved. Returns are due on or before the 20th of the month following the end of the period being reported.

Registering to collect sales tax in Georgia

You can obtain a sales and use tax account number by registering online at the Georgia Tax Center self-service portal. You’ll receive your tax number by email within 15 minutes of registration.

Penalties

If a return is not filed on time, an additional 5% of the tax due per late month or $5 per late month (whichever is greater) will be charged.

If tax due is not paid on time, an additional 5% of the tax due per late month or $5 per late month (whichever is greater) will be charged.

If false or fraudulent returns are filed, an additional 50% of the tax due will be charged.