taxhikemike.org

Money and Tax in Plain Terms

Plain-language edition

A manual that explains how money, tax and accounts work in plain terms. It describes mechanisms and history only, and states no rates, thresholds, deadlines or filing requirements.

Manual homeContentsChaptersReferenceGlossaryYou are reading: 5. Bookkeeping basics

Georgia Sales Tax Rates and Rules Explained

Georgia's state sales tax rate is 4%, and local jurisdictions add their own taxes, making the average combined rate 7.49% as of 2026. The total rate you pay depends on the county and city where the sale occurs, and it can range from 4% to 8.9%.

Current Georgia Sales Tax Rates

The Georgia Department of Revenue publishes general rate charts that are updated quarterly. These charts show the combined state and local sales tax rates for each county. The state rate is 4%, and local rates vary by jurisdiction. According to the Tax Foundation, the average combined state and local sales tax rate in Georgia is 7.49%.

Local sales taxes in Georgia include:

These local taxes vary by jurisdiction and can push the combined rate above the state rate. For example, the city of Atlanta has a combined rate of 8.9%, which includes a 1% MARTA tax. To find the exact rate for a specific location, refer to the Georgia Department of Revenue's rate charts.

What is Subject to Sales Tax in Georgia?

Georgia imposes sales tax on the retail sale of tangible personal property and certain services. Most services are exempt, but the following are taxable:

Additionally, charges by the seller that are necessary to complete the sale of taxable property are included in the taxable amount. For example, if a seller charges $20 for a shirt and $5 for delivery, sales tax is imposed on $25.

For more details, see the Georgia Department of Revenue's guide on taxable items.

Use Tax in Georgia

Use tax is imposed on non-exempt items brought into Georgia or on taxable goods and services that were not taxed at the point of sale. It applies to the first instance of use, consumption, distribution, or storage in Georgia of tangible personal property purchased outside the state.

If property is used for six months or less outside Georgia before being brought in, use tax is based on the purchase price. If used longer than six months, the tax is based on the lesser of the purchase price or fair market value. The local use tax rate is generally the rate in the county where the buyer receives the goods.

Example: A contractor buys a bulldozer in another state and pays state sales tax but no local sales tax. When the bulldozer is brought into Georgia and used in Hall County, the contractor owes Georgia state use tax (4%) reduced by the tax paid to the other state, plus Hall County use tax at the local rate.

Learn more about use tax from the Georgia Department of Revenue.

How to Calculate Georgia Sales Tax

To calculate sales tax in Georgia, follow these steps:

  1. Determine the combined sales tax rate for the location where the sale occurs. You can find this on the Georgia Department of Revenue's rate charts.
  2. Multiply the purchase price by the combined rate (expressed as a decimal). For example, if the rate is 7%, multiply by 0.07.
  3. Add the tax amount to the purchase price to get the total.

Example: For a $100 purchase in an area with a 7% combined rate, the sales tax is $7, and the total is $107.

Remember that the rate can vary by county and city, so always check the specific location.

Sales Tax Exemptions in Georgia

Georgia provides exemptions for certain items, including:

For a complete list, consult the Georgia Department of Revenue.

Frequently Asked Questions

Is Georgia sales tax 8%?

No, the state rate is 4%, but some local areas have combined rates up to 8.9%. The average combined rate is 7.49%.

How much tax is on a dollar in Georgia?

It depends on the location. At the state rate of 4%, you pay 4 cents per dollar. With local taxes, it could be up to 8.9 cents per dollar.

What items are not taxed in Georgia?

Most services, prescription drugs, certain medical devices, and manufacturing machinery are exempt. See the exemptions section above.

What is the sales tax in Georgia for 2026?

The state rate remains 4% in 2026. Local rates may change, so check the current rate charts.

For more information, visit the Georgia Department of Revenue's Sales & Use Tax page.

Return to contents