Sales tax is an important consideration for both businesses and consumers in Atlanta. As of 2024, the sales tax rate in Atlanta is 8.9% – made up of a 4% Georgia state sales tax, 4% Fulton county sales tax, and 0.9% city of Atlanta sales tax. This article will serve as a comprehensive guide on sales tax in Atlanta, providing key information such as the current sales tax rate, what’s taxable, sales tax exemptions, how to calculate sales tax, and more. Whether you’re a business owner or consumer looking to better understand Atlanta sales tax requirements, this guide has everything you need to know.
Atlanta Sales Tax Calculator
The sales tax rate in Atlanta, Georgia is currently 8.9%. This tax rate includes both the Georgia state sales tax (4%) and Fulton County+Atlanta local sales taxes (4.9%). Consumers can use the following calculator to estimate the sales tax that will be added to purchases in Atlanta:
Atlanta Sales Tax Calculator
Atlanta Sales Tax Calculator
Tax: $0.00
To use the calculator, simply enter the pre-tax price of the item you are purchasing. The calculator will automatically estimate the amount of sales tax owed by multiplying the taxable amount by the 8.9% Atlanta tax rate. For example, on a $100 clothes purchase in Atlanta, the sales tax would be $100 x 0.089 = $8.90.
This calculator provides an easy way for shoppers to estimate the total after-tax cost of purchases in Atlanta, taking the 8.9% sales tax rate into account. Knowing the sales tax amount ahead of time helps avoid sticker shock at checkout when the tax is added to bills and receipts.
What is the Current Sales Tax Rate in Atlanta?
The current total sales tax rate in Atlanta, Georgia is 8.9% as of 2024. This rate is made up of the following components:
- 4% Georgia state sales tax – This is the baseline sales tax levied statewide.
- 4% Fulton county sales tax – Fulton county has a 4% local tax that applies to Atlanta.
- 0.9% City of Atlanta sales tax – Atlanta levies an additional 0.9% sales tax on top of the state and county rates.
This means that for every dollar spent on a taxable purchase in Atlanta, 8.9 cents is owed in sales tax. The 8.9% sales tax rate has been in effect since April 1, 2022 when Fulton County increased its local sales tax rate from 3% to 4%.
What is Taxable and Exempt from Sales Tax in Atlanta?
The state of Georgia follows general sales taxability rules:
- Taxable – Most tangible goods are taxable unless specifically exempted, including furniture, clothing, electronics, jewelry, etc. Food and groceries are taxable other than what’s exempted. Prepared food and beverages for immediate consumption are taxable.
- Exempt – Basic groceries (bread, meat, produce, eggs, etc.), prescription drugs, gasoline, lottery tickets, and some farming/agriculture supplies are exempt from sales tax.
Additionally, Atlanta and Fulton County do not allow any exemptions beyond what the state permits. So there are no extra exemptions for local sales tax purposes in Atlanta.
Services and digital goods are not subject to sales tax in Georgia. However, any service that results in the production of a tangible product may be taxable.
Sales Tax Exemptions in Atlanta
The main sales tax exemptions in Atlanta and Georgia include:
- Groceries – Food and food ingredients (bread, meat, eggs, etc.) are exempt from sales tax. However, prepared food, dietary supplements, candy, and soft drinks are still taxable.
- Prescription drugs – Prescription medicines and drugs are exempt from sales tax if prescribed by a doctor and purchased from a licensed distributor.
- Gasoline – Motor fuels including gasoline are exempt from sales tax in Georgia.
- Agriculture supplies – Some agriculture items like livestock feed, seeds, fertilizers, tractors, and combines are exempt when used on farms for agriculture production.
- Manufacturing machinery – Industrial machinery used directly in the manufacturing process is exempt.
- Nonprofit organizations – Qualifying nonprofit organizations can apply for a sales tax exemption.
Businesses should maintain proper documentation to prove eligibility for claiming a sales tax exemption in Atlanta. Consumers may be asked to provide prescription info, doctor notes, or other records when purchasing tax exempt items.
How to Calculate Sales Tax in Atlanta
Calculating sales tax for transactions in Atlanta involves two simple steps:
- Determine the taxable amount of a purchase – For tangible goods, this is generally the total purchase amount unless exemptions apply. For services, there is no taxable amount.
- Multiply the taxable amount by the 8.9% combined sales tax rate – Currently in Atlanta this involves multiplying by 0.089 to get the sales tax owed.
For example, if you purchase a $100 jacket in Atlanta, the sales tax calculation is:
$100 (price) x 0.089 (8.9% Atlanta sales tax rate) = $8.90 sales tax
You would owe $108.90 total for the jacket purchase.
How Businesses Charge and Collect Sales Tax in Atlanta
Businesses in Atlanta must register for a sales tax permit with the Georgia Department of Revenue to legally charge, collect, and remit sales tax. Retailers are responsible for properly calculating tax on taxable sales and integrating sales tax into their point-of-sale systems.
Common requirements for Atlanta businesses related to sales tax include:
- Displaying prices including tax or clearly stating that tax will be added.
- Including sales tax as a line item on customer receipts.
- Filing regular sales and use tax returns reporting taxable sales and remitting tax due.
- Keeping detailed records of taxable transactions and exemptions.
- Registering for sales tax permit updates if business details change.
Failure to comply with tax laws and properly collect and remit sales tax can result in penalties, interest charges, and other consequences for businesses. Using compatible POS systems and accounting software can help automate the sales tax process for many Atlanta businesses.
Tips for Consumers on Sales Tax in Atlanta
As a consumer in Atlanta, it helps to keep the following sales tax factors in mind:
- Assume that tax will be added to the price of taxable goods. The combined 8.9% rate is one of the highest in the country.
- Check receipts to verify sales tax was calculated correctly based on the taxable amount.
- Exemptions for groceries, medicine, and more only apply to eligible items. Be prepared to show documentation if claiming an exemption.
- Sales tax is charged on prepared food and beverages for immediate consumption.
- For large purchases like appliances, furniture, or electronics, consider shopping just outside Atlanta city limits where lower county/city rates apply.
- If purchasing goods online from a retailer with no physical presence in Georgia, sales tax may not be charged at checkout but use tax is still owed.
Sales Tax Registration in Atlanta and Returns for Businesses
All businesses that sell taxable goods or services in Atlanta and Fulton County must register for a sales tax permit and file regular returns to remit collected sales tax.
Sales Tax Permit
To legally charge, collect, and report sales tax, businesses must register for a sales tax permit with the Georgia Department of Revenue. This requires submitting an application with business details including name, address, ownership, contact information, and a description of business activities.
Once approved, businesses will receive a Georgia sales tax permit/certificate within 2-4 weeks. Permits can be displayed at retail stores and shared with suppliers to make tax-exempt wholesale purchases. Permits must be updated to reflect changes like new business name, location, or ownership status.
Sales and Use Tax Returns
Businesses must file monthly, quarterly, or annual sales and use tax returns with the Georgia DOR to report total taxable sales and remit collected sales tax. Returns can be filed online through the Georgia Tax Center or by paper.
Due dates for returns are usually the 20th day following the end of the reporting period. Late payments will incur penalties and interest charges. Sales tax collected must be kept in a separate account – not used for other business expenses.
Record Keeping
Retailers should maintain detailed sales tax records including:
- Copies of sales tax returns
- Invoices for taxable purchases
- Exemption certificates
- Sales receipts and invoices showing tax breakdown
- Details of any taxable merchandise taken for business or personal use
Records must be kept for at least 3 years in case of an audit by the Georgia DOR.
Typical Sales Tax Audit Process in Georgia
The Georgia Department of Revenue regularly conducts sales tax audits on businesses to review records and ensure proper tax compliance. Typical steps in a Georgia sales tax audit include:
- Notice – Business receives a notice of intent to audit and requested records. Additional pre-audit information may be requested.
- Preparation – Business compiles requested records and organizes them prior to audit. It helps to review past returns and confirm reporting accuracy.
- Entrance Conference – Opening meeting between auditors and business to discuss scope, timetable, contact protocol, and information needs.
- Field Work – Auditors review provided records onsite. Additional requests may be made. Auditors determine tax due based on their review.
- Exit Conference – Auditors summarize findings, discuss any discrepancies found, and provide tentative audit results. Business can present additional records and respond to findings.
- Final Determination – Business receives official audit report with final determination on any underpayment, penalties, interest due. Opportunity to appeal.
- Payment – If the audit results in additional tax due, the business is required to pay the amount owed including any applicable penalties and interest charges. Payment is expected within 30 days of receiving the final audit determination.
- Businesses can pay audit assessments via check, ACH payments, wire transfers, or online through the Georgia Tax Center. If needed, payment plans can be arranged. Strict penalties apply for failure to pay after an audit.
Avoiding Sales Tax Audit Triggers
Businesses can potentially avoid sales tax audits or reduce likelihood by:
- Accurately calculating taxable amounts and using correct rates on all transactions.
- Timely filing all returns and payments and avoiding delays.
- Responding promptly to any requests for information or records.
- Keeping organized records that fully support all tax returns.
- Reporting immaterial errors to get corrected prior to audit.
- Ensuring point-of-sale systems and accounting software are properly configured.
- Monitoring and cross-checking collection of tax against payments to state.
- Consistently applying tax exemptions and obtaining exemption certificates.
- Reviewing transactions for use tax if tax not collected at sale.
- Staying up-to-date on Georgia sales tax laws and rate changes.
Georgia Sales Tax Filing and Payment Options
Georgia businesses have several options when it comes to filing sales and use tax returns and remitting payment:
File and Pay Online
The Georgia Tax Center allows for online filing of returns and instant payment via ACH debit, credit card, or e-check. Use is free and provides digital records.
File Returns Online, Pay Separately
While returns can be submitted online, payments can be remitted separately via check, wire transfer, or third-party tax payment service.
File and Pay by Paper
Paper returns can be mailed in with a check or money order for any tax due. This ensures physical records but is slower.
Sales Tax Software
Compatible software and apps can streamline filing and payment across multiple jurisdictions. They integrate with POS systems and accounting software. Popular options include Avalara, TaxJar, and Vertex.
Third-Party E-File Services
Paid services will file returns and remit payment on the business’s behalf. This is convenient but gives up control and costs extra fees.
Georgia Online Sales Tax Registration
For Georgia businesses that sell products online, sales tax requirements apply to these internet sales just as they would for in-store sales:
- Physical presence nexus – Retailers with a physical location, employees, inventory etc. in Georgia must collect and remit state + local sales tax on all taxable sales to Georgia customers.
- Economic nexus – As of January 2019, the economic nexus laws apply in Georgia. Remote sellers exceeding $250,000 in sales or 200 transactions into Georgia in the current/previous calendar year have sales tax obligations.
- Marketplace facilitator laws – As of April 2020, marketplace providers like Amazon, eBay, Etsy etc. that facilitate sales for Georgia sellers must collect and remit the sales tax due on those transactions.
Out-of-state online retailers that meet the economic or marketplace facilitator thresholds are required to register for a Georgia sales tax permit and begin collecting/remitting sales tax on Georgia sales. Use tax may otherwise be due from the customer.
Georgia also participates in the Simplified Sellers Use Tax Remittance Program, allowing voluntary sales tax collection and filing from out-of-state sellers that fall under the nexus thresholds.
Resources on Georgia and Atlanta Sales Tax
Georgia Department of Revenue
The Georgia DOR website has complete details on state sales tax requirements, including registration, filing, exemptions, industry guides, current forms, and contact info.
Fulton County Tax Commissioner
For information on the Fulton County sales tax rate and local tax requirements in Atlanta.
Conclusion
Sales tax is an important consideration for both businesses and consumers in Atlanta. The combined sales tax rate of 8.9% ranks among the highest in the nation and must be applied to most goods and some services.
Knowing what’s taxable, what qualifies for exemptions, and how to accurately calculate sales tax is key to remaining compliant. This guide provides an overview of the sales tax laws in Atlanta and Georgia as of 2024, but requirements do change periodically. Always reference official state and local resources to stay updated on the specifics for your obligations.
Properly registering for permits, integrating sales tax into point-of-sale systems, filing returns, and retaining records can help businesses avoid non-compliance penalties and audits. Consumers should watch for illegitimate sellers failing to charge sales tax and include use tax appropriately on their tax returns.
Frequently Asked Questions
What is the sales tax rate in Atlanta?
The total sales tax rate in Atlanta is currently 8.9% as of 2024. This includes the 4% Georgia state sales tax, 4% Fulton County local sales tax, and 0.9% City of Atlanta local sales tax.
What purchases are taxable in Atlanta?
Most tangible goods are taxable unless specifically exempted. Prepared food, candy, soft drinks, and dietary supplements are also subject to Atlanta sales tax. Clothing, furniture, electronics, toys, etc. purchased in Atlanta will have 8.9% sales tax added. Services and digital products are not taxable.
What items are exempt from sales tax in Atlanta?
Common tax-exempt items include grocery foods, prescription medicine, gasoline, agricultural supplies, and goods manufactured in Georgia intended for export.
How do I calculate Atlanta sales tax on a purchase?
Multiply the taxable purchase amount by 0.089 (8.9%). For example, on a $50 taxable item, the sales tax owed would be $50 x 0.089 = $4.45 owed.
Do Atlanta businesses have to collect sales tax?
Yes, any retailer or seller with a physical presence in Atlanta must register for a sales tax permit and collect 8.9% sales tax on taxable sales to remit to the state.
How often do Atlanta businesses file sales tax returns?
Most file and pay monthly, especially larger retailers. Smaller businesses may file quarterly or annually. Returns are due the 20th of the following month.
What is the VAT in Atlanta Georgia?
Georgia does not have a value added tax (VAT). Rather, it has a traditional retail sales tax that is levied on purchases of most tangible personal property and some services. The state sales tax rate is 4% and the total sales tax rate in Atlanta is 8.9% when combined with local county and city rates.
What is the percentage of taxes if I want to buy an iPhone 13 from Apple in Atlanta, Georgia?
If you purchase an iPhone 13 from an Apple store located in Atlanta, you will pay 8.9% sales tax on the full purchase price. This includes the 4% Georgia state sales tax plus the 4% Fulton County local tax and 0.9% Atlanta local tax that make up the total 8.9% Atlanta sales tax rate.
Atlanta sales tax on clothes?
Clothing and apparel items sold in Atlanta are subject to the full 8.9% sales tax rate. There are no special exemptions or reduced sales tax rates for clothing purchases in Atlanta under Georgia state law or local regulations. The 8.9% tax will be added at checkout to your clothing purchases in Atlanta stores.
