Georgia's 4% state rate is one of the lower base rates, but local counties and cities can add up to 5% on top — Atlanta's 8.9% combined rate reflects multiple stacked local taxes. Georgia exempts groceries from state tax but local jurisdictions can still tax them. The state had a back-to-school holiday through 2016 but has not renewed it.
Georgia sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 4.00% |
| Avg local add-on | 3.81% |
| Avg combined | 7.81% |
| Maximum combined | 9.00% |
Note: Georgia ended its back-to-school holiday after 2016. Counties + cities can stack up to 5% local sales tax on the 4% state base.
Georgia sales tax by city
Combined state + local sales tax rates for major cities in Georgia:
| City | Combined Rate |
|---|---|
| Atlanta | 8.90% |
| Augusta | 8.00% |
| Columbus | 8.00% |
| Savannah | 7.00% |
What's exempt in Georgia
Groceries
Exempt from Georgia state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
How Georgia sales tax is calculated
Sales tax in Georgia is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 7.81% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (4.00%) plus any local city or county add-ons. Georgia allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 7.81%:
$100 item
$7.81 tax
$107.81 total
$250 item
$19.53 tax
$269.53 total
$500 item
$39.05 tax
$539.05 total
$1,000 item
$78.10 tax
$1078.10 total
Additional tax-free items in Georgia
Beyond the standard exemptions, Georgia also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Georgia Department of Revenue for complete rules.
Georgia sales tax in context: rates, history, and neighbors
Georgia's 4% state sales tax is among the lowest base rates in the US, but counties and cities can stack up to 5% additional tax — making the combined max 9% in some jurisdictions. Atlanta combined: 8.9% (4% state + 3% Fulton County + 1.5% MARTA + 0.4% city). Augusta: 8%. Columbus: 8%. Savannah: 7%. Georgia's Special Purpose Local Option Sales Tax (SPLOST) and Education SPLOST programs let counties add 1% increments for specific projects (schools, infrastructure) — these are common throughout Georgia. The state grocery exemption (4%) applies but counties still tax groceries at their local rates. Compared to neighbors: Florida (~7%), Alabama (~9.31%), South Carolina (~7.46%), Tennessee (~9.55%), North Carolina (~6.99%) — Georgia sits in the lower-middle range. Georgia accelerated its income tax reductions but has been stable on sales tax for years.
Online shopping & Georgia sales tax
Georgia enacted economic nexus in January 2019 — sellers with $100,000+ or 200+ transactions in Georgia annually must collect sales tax. Georgia's marketplace facilitator law requires platforms like Amazon and Etsy to collect and remit tax on all third-party transactions. Georgia is a member of the Streamlined Sales Tax (SST) Agreement.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Georgia sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Georgia state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Georgia sales tax on common purchases?
Using Georgia's average combined rate of 7.81%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | $9.37 | $129.37 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $78.02 | $1077.02 |
| Laptop / tablet | $1,299 | $101.45 | $1400.45 |
| New car ($35,000) | $35,000 | $2733.50 | $37733.50 |
| Home appliance | $1,500 | $117.15 | $1617.15 |
| Restaurant meal | $60 | $4.69 | $64.69 |
Based on Georgia's average combined rate of 7.81%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Georgia: business guide
If you sell goods or taxable services to Georgia customers, here's what you need to know:
- Registration: Register for a Georgia sales tax permit/license through the Georgia Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Georgia annual sales or 200+ transactions, you must collect Georgia sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (4.00%) and applicable local rates.
- Destination vs origin sourcing: Georgia uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Georgia sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Georgia Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Georgia sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Georgia resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Georgia is a full member of the Streamlined Sales Tax (SST) Agreement, which simplifies multi-state sales tax registration and compliance through a single registration portal (streamlinedsalestax.org).
Georgia-specific business compliance details
Georgia businesses register with the Georgia Department of Revenue at gtc.dor.ga.gov for a Georgia Sales Tax Number (also called a 'STC'). Filing frequency: monthly for $200+/month tax (most businesses), quarterly for smaller, annually for very small. Out-of-state sellers with $100,000+ in Georgia sales (or 200+ transactions) must collect Georgia tax (economic nexus, since 2019). Marketplace facilitators collect on third-party sales. Georgia is a Streamlined Sales Tax (SST) Agreement member. Georgia uses destination-based sourcing for online sales. SPLOST and ESPLOST taxes vary by county — POS systems should be configured for the buyer's specific delivery county. Penalties: 5% of unpaid tax per month, capped at 25%. Georgia has aggressive online seller enforcement.
Georgia sales tax frequently asked questions
How much is the combined sales tax rate in Atlanta, Georgia?
Atlanta's combined sales tax rate is 8.9% — one of the highest in the Southeast. This breaks down as: 4% Georgia state + 3% Fulton County + 1% MARTA transit tax + 0.9% city of Atlanta tax. Note that the exact rate can vary slightly depending on which side of a city/county boundary you're in. Gwinnett County (eastern Atlanta suburbs) has a lower 7% combined rate.
Are groceries taxed in Georgia?
Georgia exempts groceries from state sales tax (4%), but counties and cities may still apply their local portion. In most Atlanta-area counties, groceries are taxed at 3%–5% (local rates only). True grocery exemption requires no local tax — Fulton County taxes groceries at its 3% local rate. For zero-tax grocery shopping, you'd need to be in a county with no local grocery tax.
Does Georgia have a back-to-school sales tax holiday?
Georgia had a back-to-school sales tax holiday from 2002 through 2016, then discontinued it. As of 2026, Georgia does not offer any sales tax holidays. Georgia residents who want tax-free school supply shopping often cross into neighboring Tennessee (which has an annual back-to-school holiday) or shop during major retailer sale events.