Georgia Sales Tax Rates

Total Range for 2024

4% – 9%

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Why do you need to collect sales tax in Georgia?

If you’re selling goods and services in Georgia then sales tax might apply! To determine your obligation, you must understand “nexus,” which ties businesses to states for tax purposes.

Two types of nexus exist:

  1. Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Georgia, triggers this type. If you do, you likely need to collect sales tax.
  2. Economic Nexus: This kicks in when your sales within Georgia exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.

In Georgia, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.

Is what you’re selling taxable in Georgia?

Here’s our quick overview of whether or not what you’re selling will be taxable in Georgia, but remember that there could be and are always exceptions to these rules:

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How to register for sales tax in Georgia

To register for sales tax in Georgia, you’ll need to complete the process through the Georgia Tax Center (GTC), a secure online portal. Here’s a quick guide:

  1. Gather Information: Before registering, have some details handy:
    • Your Social Security number (if a sole proprietor) or Employer Identification Number (EIN)
    • Business name, address, and contact information
    • North American Industry Classification System (NAICS) code (find yours online)
    • Estimated monthly sales and taxable sales
    • Products or services you’ll be selling
  2. Head to the Georgia Tax Center: Visit the Georgia Department of Revenue‘s website and navigate to the Tax Registration section. Look for “Sign Up For GTC” or similar.
  3. Register Online:  Within the Georgia Tax Center, you’ll find an option to register your business. Follow the prompts and fill out the application with the information you gathered.
  4. Finalize Registration: Once submitted, you should receive your Georgia sales tax number and account information within 15 minutes via email.

How to collect sales tax in Georgia

  1. Find the combined sales tax rate for your customer’s location (Georgia + local taxes).
  2. Charge that rate at checkout (most systems automate this).
  3. Keep good sales records (including collected tax).
  4. File & pay sales tax electronically through the Georgia Tax Center (frequency depends on sales volume).

Example:

  • Sales price of a product: $100
  • Combined sales tax rate: 7%
  • Sales tax amount: $100 x 7% = $7
  • Total price of the item including sales tax: $100 + $7 = $100

FAQs

Do you have a physical nexus in Georgia?

In Georgia, a business generally has a physical nexus if it has a physical presence in the state. This presence can take a few forms:

  • Owning or leasing a physical location: This includes a brick-and-mortar store, warehouse, office, or any other place of business.
  • Having employees in Georgia: This applies to employees who regularly work in the state, even if they work remotely.
  • Storing inventory in a Georgia warehouse: This includes goods held by a third-party logistics company on your behalf.
  • Owning real property or other personal property: This could be anything from a vehicle used for deliveries to furniture in an office.
  • Delivering merchandise yourself with your own vehicles: If you have your own fleet making deliveries in Georgia, that can establish nexus.
  • Having independent contractors or representatives in Georgia: This includes salespeople, solicitors, or anyone who promotes your business and takes orders in the state.
Do you have an economic nexus in Georgia?

Georgia establishes economic nexus based on a sales threshold. If your business makes more than $100,000 in sales of taxable goods or services to Georgia customers in the previous or current calendar year, or you have more than 200 transactions within the state during that period, you likely have economic nexus.

What is use tax in Georgia?

Use tax in Georgia applies to taxable goods you purchase without paying sales tax at the time of purchase. There are two main scenarios where use tax comes into play:

  1. Out-of-state purchases: If you buy taxable items from a seller outside Georgia and bring them into the state for use, storage, or consumption, you’re responsible for paying use tax.
  2. In-state purchases without sales tax collected: In some cases, you might make a purchase within Georgia where the seller isn’t required to collect sales tax. This could happen if you buy from a non-registered seller or if the item is exempt from sales tax but still subject to use tax.

The use tax rate in Georgia is the same as the combined sales tax rate for your area.

Do you need a seller/reseller permit?

Whether you need a seller’s permit (also called a sales tax permit) or a reseller permit (also called a resale certificate) depends on your business activities. Here’s a breakdown:

Seller’s Permit:

  • You need a seller’s permit if you sell taxable goods or services to customers.
  • This permit allows you to collect sales tax from your customers and then remit it to the state.
  • Most states require a seller’s permit, regardless of whether you have a physical store or sell online.

Reseller Permit:

  • You need a reseller permit if you purchase taxable goods for resale.
  • This permit allows you to buy those goods wholesale without paying sales tax upfront.
  • You then collect sales tax from your customers when you sell the items and remit that tax to the state.
How to get a sales tax permit/license in Georgia?

In Georgia, a sales tax permit is not a separate license, it’s obtained through registering for a tax account number. Here’s how to get one:

  • Online Registration: The quickest and easiest way to register for a sales tax permit in Georgia is through the Georgia Tax Center (GTC) website: https://gtc.dor.ga.gov/.
  • Information Required: You’ll need basic business information like your business name, address, and Federal Employer Identification Number (FEIN).
  • Cost: There’s no fee to apply for a sales tax permit in Georgia.
  • Processing Time: Online registration is fairly quick, and you should receive your tax account number (acting as your sales tax permit) within 15 minutes via email.
When are Georgia's Returns Due?

Georgia’s sales tax returns are due on the 20th day of the month following the reporting period. This applies to all filing frequencies, monthly, quarterly, or annually.

Here’s a breakdown for your reference:

  • Monthly Filers: If your business makes sales tax payments monthly, your returns are due on the 20th of the following month.
  • Quarterly Filers: For businesses filing quarterly, the return for the quarter is due on the 20th day of the month following the end of the quarter.
  • Annual Filers: Businesses approved to file annually have their returns due on January 20th of the following year.
How to file sales tax in Georgia?

There are two main ways to file your sales tax return in Georgia:

  1. Online Filing (Recommended):

This is the quickest and most efficient method, and it’s also required if you owe more than $500 in sales tax. Here’s how to do it:

  • Visit the Georgia Tax Center (GTC) website: https://gtc.dor.ga.gov/
  • You’ll need to register for a GTC account if you haven’t already (explained previously).
  • Once logged in, navigate to the section for filing and paying sales tax.
  • The GTC platform will guide you through entering your sales tax information, calculating any tax owed, and submitting your return electronically.
  • You can also make your tax payment electronically through the GTC system.
  1. Filing by Mail:

If you cannot file electronically, you can use the paper form ST-3, available for download on the Georgia Department of Revenue website.

  • Complete the form ST-3 carefully, ensuring all necessary information is included.
  • Mail the completed form along with your payment to the address provided on the form or the Georgia Department of Revenue instructions.
Is anyone exempt from sales tax in Georgia?

In Georgia, there are no blanket exemptions from sales tax for entire categories like churches or non-profit organizations. However, there are exemptions for specific types of goods and services, and some exemptions may apply to certain qualifying organizations under specific circumstances.

Here’s a breakdown of exemptions to consider:

  • Exempt Goods: Certain goods are exempt from Georgia sales tax, including:
    • Prescription drugs and medical equipment
    • Most unprepared food items (note: local sales tax may still apply)
    • Certain agricultural products
    • Educational materials (textbooks, etc.)
  • Exempt Services:  Some services are not subject to sales tax, such as:
    • Most professional services (legal, accounting, etc.)
    • Educational services
    • Financial services
  • Qualifying Organizations:  While not a general exemption, some non-profit organizations may be eligible for tax-exempt purchases under specific conditions. This typically involves obtaining a sales tax exemption certificate from the Georgia Department of Revenue and meeting specific criteria for the purchases.

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