Georgia imposes a 4% statewide sales tax on the retail purchase of most goods along with some services. Combined with local sales taxes, Georgia residents pay an average of 7% in total sales tax depending on their location. Georgia sales tax Calculator allows taxpayers to optimize major purchases while ensuring businesses comply with registration, collection, filing, and remittance requirements.
Georgia Sales Tax Calculator
The Georgia sales tax calculator is an online tool that allows users to easily calculate the sales tax due on a purchase in Georgia. To use the calculator, you simply:
Georgia Sales Tax Calculator
Georgia Sales Tax Calculator
- Select your Georgia county and city from the dropdown menus. This will populate the applicable state, county, and city sales tax rates.
- Enter the amount of your purchase. This can be the pre-tax purchase price or total including tax, the calculator will adjust accordingly.
- The calculator will then automatically compute the sales tax by applying the combined state, county, and city rates to your purchase amount.
- The calculator displays a breakdown of the tax rates applied and the amount of sales tax owed.
- You can also enter multiple purchase amounts to estimate sales tax on your total purchase.
The Georgia sales tax calculator takes the complexity out of figuring sales tax and makes it quick and easy to calculate the tax on purchases in any part of Georgia. It’s a convenient tool for shoppers and businesses to estimate owed sales tax at checkout or when preparing taxes.
Overview of Sales Tax in Georgia
Georgia first enacted a 3% statewide sales and use tax which applied to retail sales of tangible personal property in 1951. The rate increased to 4% in 1989, which remains the current state sales tax rate as of 2023. This 4% sales tax in Georgia applies broadly to sales of most physical goods.
On top of the statewide rate, counties and cities in Georgia can levy their own local option sales taxes ranging from 1% to 5%. So total sales tax paid by consumers varies based on jurisdiction, with some areas reaching as high as 9% when combined state and local rates are added together.
In addition to general sales tax, Georgia imposes excise taxes on things like motor fuel, alcohol, and tobacco. The state also taxes vehicle purchases based on the sales price less any trade-in value.
What Transactions are Subject to Sales Tax in Georgia?
Georgia broadly applies its 4% statewide sales tax plus any local sales taxes to retail sales of most tangible personal property. This includes common purchases like:
- Clothing, footwear, and accessories
- Furniture, appliances, and electronics
- Home goods like décor, linens, kitchenware
- Sports equipment and hobby supplies
- Digital goods like apps, ebooks, music, movies
- Food and groceries
- Alcohol and tobacco
- Motor vehicles and boats
While extensive, Georgia does exempt some transactions like prescription drugs, manufacturing machines, farm equipment, and goods purchased for resale from sales tax.
Exemptions to Sales Tax in Georgia
While broad, Georgia’s sales tax law does provide some specific exemptions, including:
- Prescription drugs – Prescription medicine and certain medical devices are exempt.
- Agriculture machinery and equipment
- Energy used in manufacturing
- Food purchased with SNAP benefits – Groceries bought with SNAP/EBT/food stamps are exempt.
- Sales for resale – Inventory purchased by retailers and manufacturers for resale is exempt.
- School lunches – Meals provided through school lunch programs are exempt.
- Airline employee meals
Taxpayers should be aware of Georgia’s exemptions when budgeting for and making major retail purchases.
Who Collects and Remits Sales Tax in Georgia?
In Georgia, sellers making taxable sales are responsible for collecting and remitting sales tax. Consumers then pay this tax at the point of sale.
Both in-state and remote sellers shipping taxable goods into Georgia must register for sales tax permits once they exceed certain economic nexus thresholds:
- $100,000 in retail sales
- 200 or more separate retail sales transactions
These thresholds took effect in 2019 following the South Dakota v. Wayfair Supreme Court decision.
Marketplaces like Amazon must collect and remit Georgia tax on behalf third-party vendors when they exceed Georgia’s transaction thresholds.
How Georgia Uses Sales Tax Revenue
In fiscal year 2022, Georgia collected over $7.2 billion in total sales and use tax revenue. Sales tax accounts for over half of Georgia’s total tax revenues. These funds support services like:
- Education – K-12 schools, universities, student scholarship programs.
- Healthcare – Medicaid, public health, mental health and substance abuse treatment.
- Transportation – Road and bridge infrastructure, public transit.
- Public safety – Law enforcement, courts, corrections.
- General government – State operations, buildings, payrolls.
- Local communities – Tax revenue sharing with counties and cities.
Without sales tax, Georgia would need to impose much higher income or property tax rates to fund these programs.
Recent and Possible Future Changes to Sales Tax in Georgia
Like most states, Georgia frequently adjusts its sales tax policies through legislation:
- Online sales tax – Georgia enacted economic nexus rules for remote sellers following the 2018 Wayfair decision.
- Tax holidays – Georgia holds multiple sales tax holidays each year temporarily suspending tax on school supplies, energy efficient products, and disaster preparedness items.
- Electric vehicle fee – A new $200 annual fee took effect in 2020 for electric vehicle registrations to replace lost gas tax revenue.
- Digital goods – Georgia may consider expanding taxation to more digital products and subscriptions as shopping trends evolve.
- Tax base expansion – Periodic proposals emerge to tax more services and remove certain carve-outs.
Taxpayers and businesses should stay up-to-date on any changes impacting their obligation.
Sales Tax Compliance Tips for Georgia Businesses
Businesses making taxable sales into Georgia must register for permits and follow all sales tax compliance regulations:
- Obtain a sales tax permit – Register for a permit after exceeding economic nexus thresholds. You can register online through the Georgia Tax Center.
- Integrate sales tax software – Solutions like AvaTax can automate rate calculations, timely filing, and payments.
- Charge all tax rates accurately – Ensure your POS system applies the correct combined state and local rates based on delivery jurisdiction.
- Collect tax on online and mail order sales – Charge Georgia tax on any orders shipped to Georgia addresses.
- File returns on time – Georgia sales tax returns are due the 20th of the following month. Late filings incur penalties.
- Keep detailed transaction records – Retain shipping addresses and exemption documentation to validate tax charges.
Conclusion
While not imposing the highest rates, Georgia’s combined state and local sales taxes still reach 7% on average. Careful planning around exemptions allows taxpayers to reduce costs on major purchases. Meanwhile, both in-state and remote sellers must closely monitor economic nexus requirements, integrate software, and master taxability rules to smoothly collect and remit Georgia sales tax in today’s complex retail environment. As e-commerce grows and tax policies evolve, managing Georgia sales tax compliance will likely continue posing challenges in 2023 for both residents and businesses.
