Georgia — Sales & Use Tax

Georgia imposes a state sales tax at 4% on retail sales of tangible personal property and certain enumerated services. The tax is imposed on the purchaser but collected and remitted by the dealer. Local jurisdictions may impose additional sales taxes at the county and city levels. A dealer is any person who sells tangible personal property at retail, offers it for sale at retail, or has it in possession for sale at retail, use, consumption, distribution, or storage for use or consumption in Georgia.

Sales tax becomes due when a dealer makes a retail sale in Georgia. Use tax applies when a purchaser acquires taxable goods or services without paying tax at the point of sale, or when non-exempt items are brought into Georgia from out of state for use, consumption, distribution, or storage.

Source: Georgia DOR – What is Subject to Sales and Use Tax?

Georgia imposes a state sales and use tax at a rate of 4 percent. This rate applies statewide to retail sales of tangible personal property and certain enumerated services. The state rate is separate from local sales taxes imposed by counties and municipalities; the combined state and local rates vary by jurisdiction. Every purchaser of tangible personal property at retail in Georgia is liable for tax at the rate of 4 percent of the sales price, and retailers are required to collect and remit this tax.

The Georgia Department of Revenue publishes quarterly rate charts reflecting current combined state and local rates. The chart effective April 1, 2026 through June 30, 2026 confirms the 4 percent state rate. Rate changes are limited by statute to the first day of each calendar quarter.

Source: Georgia DOR Sales and Use Tax Rate Chart (Effective April 1, 2026 through June 30, 2026) | Georgia DOR Tax Rates Page

Georgia requires remote sellers to register and collect sales tax if they exceed $100,000 in gross revenue from retail sales delivered into Georgia OR 200 or more separate retail transactions in the current or previous calendar year. Meeting either threshold triggers the collection obligation. Sales made through marketplace facilitators (such as Amazon or eBay) are excluded from a seller's individual threshold calculation. The current thresholds became effective January 1, 2020, lowering the prior $250,000 threshold.

Source: Georgia DOR – Out-of-State Sellers | Policy Bulletin SUT-2019-02

Georgia requires a marketplace facilitator to collect and remit state and local sales tax on facilitated retail sales sourced to Georgia if the total value of its taxable retail sales sourced to Georgia — combined across all marketplace sellers and the facilitator itself — equals or exceeds $100,000 in the previous or current calendar year. The facilitator is treated as the dealer and retailer for each facilitated sale. Marketplace sellers are relieved of the obligation to collect tax on sales for which the facilitator is liable. This requirement became effective April 1, 2020.

Source: Georgia DOR – Marketplace Facilitators | Policy Bulletin SUT-2020-01

Georgia sales and use tax returns are due monthly by the 20th day of the month following the reporting period. New dealers must file monthly for the first six months after registration. After six months, dealers may request quarterly filing if their tax liability averaged less than $200 per month over the prior six months, or annual filing if liability averaged less than $50 per month. When the 20th falls on a weekend or Georgia state holiday, the return is due the next business day.

Source: Georgia DOR – File & Pay | Ga. Comp. R. & Regs. r. 560-12-1-.22

Georgia exempts sales of tangible personal property and services purchased for resale from sales and use tax under O.C.G.A. § 48-8-30. To claim this exemption, a purchaser must provide the seller with a properly completed Form ST-5 Certificate of Exemption. The certificate must state that the property or service is purchased for resale only, and the purchaser must generally hold a valid Georgia sales and use tax number unless the purchaser is one of a limited class of exempt organizations (church, qualifying tax-exempt child caring institution, tax-exempt parent-teacher organization or association, private school grades K-12, nonprofit entity raising funds for a public library, or member councils of the Boy Scouts or Girl Scouts).

Good-faith acceptance standard

A seller who accepts a properly completed exemption certificate in good faith is relieved of the burden of proving that the sale was not subject to tax under O.C.G.A. § 48-8-38(a). The statute places the burden of proving a sale is nontaxable on the seller unless the seller takes a valid certificate in good faith. A properly completed certificate taken in good faith means the seller obtains a certificate that is:

• Fully completed, including the name, address, sales tax number (when required), and signature of the taxpayer • In a form appropriate for the type of exemption claimed • Claiming an exemption that was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced • Claiming an exemption that could be applicable to the item being purchased • Claiming an exemption that is reasonable for the purchaser's type of business

Resale-only limitation

The tax-free treatment under the resale exemption does not extend to any purchase to be used by the purchaser, including items the purchaser will donate, as specified in O.C.G.A. §§ 48-8-3(15), (39), (41), (56), (59), (71). The certificate relieves the seller from liability only if the property is actually purchased for resale in its original form or as an ingredient or component of a product to be resold.

Certificate validity and retention

Most Georgia exemption certificates, including resale certificates, do not expire and remain valid until revoked in writing by the purchaser. The exception is the Georgia Agricultural Tax Exemption (GATE) certificate, which expires annually. Sellers must secure and maintain one properly completed certificate of exemption from each purchaser making tax-exempt purchases and must be able to produce the certificates during an audit by the Georgia Department of Revenue.

Verification responsibility

Although the statute does not mandate verification of the purchaser's sales tax number, best practice is for sellers to verify the validity of the purchaser's Georgia sales tax ID using the Department of Revenue's online verification tool. Sellers should also evaluate whether the items purchased are consistent with the purchaser's type of business; if a buyer's stated business is a car dealership but the buyer seeks to purchase office supplies tax-free for resale, the seller should investigate further before accepting the certificate. Failure to exercise reasonable diligence may expose the seller to liability for uncollected tax, penalties, and interest in an audit.

Source: Georgia DOR – Nontaxable Sales | Georgia DOR Form ST-5

Georgia applies destination-based sourcing for sales and use tax, effective January 1, 2011, when the state adopted sourcing rules under O.C.G.A. § 48-8-77 to conform with the Streamlined Sales and Use Tax Agreement. Under destination-based sourcing, sellers must collect tax based on the location where the purchaser receives the product, not the seller's location, and must apply the combined state and local rate for the destination jurisdiction.

Sourcing hierarchy for retail sales

Georgia statute establishes a mandatory sourcing waterfall for retail sales (excluding leases and rentals). The sale is sourced in the following order of priority:

1. When the product is received by the purchaser at a business location of the seller in Georgia, the sale is sourced to that business location.

1. When the product is not received at the seller's business location, the sale is sourced to the location where receipt by the purchaser (or the purchaser's donee, designated as such by the purchaser) occurs, including the location indicated by delivery instructions known to the seller.

1. When neither of the above applies, the sale is sourced to the location indicated by an address for the purchaser available from the seller's business records maintained in the ordinary course of business, provided use of this address does not constitute bad faith.

1. When none of the above apply, the sale is sourced to the seller's business location from which the sale was made.

Sellers must apply each tier in sequence and may not skip to a lower tier when information for a higher tier is available.

Local sales tax application

In addition to the 4 percent state sales tax, local jurisdictions in Georgia impose additional sales taxes at the county and municipal levels. Local taxes are authorized under separate Georgia statutes and include the Local Option Sales Tax (LOST), Special Purpose Local Option Sales Tax (SPLOST), Education SPLOST, and Transportation SPLOST. These local taxes are approved by local referendum, imposed for specified time periods, and may expire or be renewed on different schedules.

Because Georgia uses destination-based sourcing and local tax rates vary by jurisdiction, sellers with nexus must determine the correct combined state and local rate for each delivery location in Georgia. The Georgia Department of Revenue provides advance notice of rate changes and limits the effective date of rate changes to the first day of a calendar quarter. The Department publishes a combined state and local rate chart each quarter reflecting current rates.

A seller that sources a sale in good faith according to the statutory sourcing hierarchy and the information available to it is relieved of liability for additional tax if the sourcing determination later proves incorrect, provided the seller did not act in bad faith.

Leases and rentals of tangible personal property

Periodic-payment leases and rentals follow different sourcing rules. The first periodic payment is sourced using the general retail-sale hierarchy above. Subsequent periodic payments are sourced to the primary property location, as indicated by an address for the property provided by the lessee that is available to the lessor. If the lessor does not have an address for the property, the payment is sourced to the lessee's address on file with the lessor. The primary property location is not altered by intermittent use at different locations. Leases and rentals that do not require recurring periodic payments are sourced as a retail sale.

Transportation equipment sourcing

Sales (including leases and rentals) of transportation equipment defined in O.C.G.A. § 48-8-77(b)(4)—including locomotives, railcars, certain heavy trucks and trailers registered under the International Registration Plan, and aircraft operated by air carriers under federal authority—are sourced using the general retail-sale hierarchy, notwithstanding the general exclusion of leases from that tier.

Streamlined Sales Tax compliance provisions

Georgia's membership in the Streamlined Sales and Use Tax Agreement, effective January 1, 2011, established compliance procedures for sellers registered under the Agreement. Registered sellers may file Simplified Electronic Returns. Motor fuel dealers may not file Simplified Electronic Returns. The Department of Revenue administers the sourcing rules in conformity with the Agreement's uniform provisions and provides rate databases to registered sellers.

Source: Georgia DOR Policy Bulletin SUT-2010-10 | Ga. Comp. R. & Regs. r. 560-12-5

Georgia sales and use tax applies to retail sales of tangible personal property and to certain specifically enumerated services. Unlike tangible personal property sales—which are presumed taxable unless an exemption applies—services in Georgia are presumed nontaxable unless the service is specifically designated as taxable in the Georgia Code. The enumeration of taxable services appears in the statutory definition of "retail sale" at O.C.G.A. § 48-8-2(31).

Enumerated taxable services

Georgia law subjects the following categories of services to the 4 percent state sales tax (plus applicable local taxes) when purchased by a consumer for purposes other than resale:

• Rental and leasing of tangible personal property. The lease or rental of tangible personal property is treated as a retail sale and is subject to tax. Rental or lease of real property is not taxable.

• Local telephone service. Sales of local exchange telephone service (excluding coin-operated telephone service) are taxable. The statute specifically lists local telephone service as a taxable retail sale. Telecommunications services that do not meet the definition of "local telephone service" are generally not taxable, and internet access service is not among the enumerated taxable services.

• Utilities. Sales of natural or artificial gas, oil, electricity, and solid fuel are taxable services under the retail sale definition.

• Transient accommodations. Charges for furnishing rooms, lodgings, or accommodations (hotel, motel, inn, tourist camp, tourist cabin, campground, or other similar place) for periods of 90 consecutive days or less are taxable. Accommodations furnished for more than 90 consecutive days are not subject to tax.

• Transportation services. Certain charges for transportation are taxable, subject to specific statutory exemptions.

These categories are enumerated in O.C.G.A. § 48-8-2(31), which defines "retail sale" to include sales of tangible personal property and sales of the enumerated services listed above when sold to any purchaser for purposes other than resale.

Services NOT taxable in Georgia

Georgia law does not impose sales tax on services that are not specifically enumerated in the statute. According to Georgia Department of Revenue guidance, sales of services are not subject to tax unless the service is specifically designated as taxable. Nontaxable services include:

• Professional services (legal, accounting, consulting, engineering, architectural) • Personal services (haircuts, massage, tattooing, body piercing) • Repair and installation services (when separately stated and priced) • Advertising and marketing services • Data processing and information services

Software-as-a-Service and cloud computing

Cloud subscription services that allow customers to access and use vendor software via the internet are not among the enumerated taxable services, according to Georgia Department of Revenue Letter Ruling SUT-2014-01. In that ruling, the Department concluded that cloud subscription services are not subject to Georgia sales and use tax because (1) they are not among the enumerated taxable services, and (2) they do not include the transfer of tangible personal property. This ruling addressed a specific fact pattern involving software delivered electronically without transfer of a tangible medium.

Similarly, the Department ruled in Letter Ruling SUT-2017-04 that software-related services (including hosting services and customization services) are not specifically identified in the Georgia Code as services subject to tax, and therefore charges for such services are not taxable.

Mixed transactions: tangible personal property vs. services

When a transaction involves both tangible personal property and services, the taxability of the entire transaction may depend on whether the primary object of the transaction is the sale of property or the provision of services. Georgia law exempts "professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made" under O.C.G.A. § 48-8-3(22).

Conversely, when services are embedded in the price paid for taxable tangible personal property and are not separately stated and separately priced, those services become part of the taxable sales price. The Georgia Department of Revenue has stated that separately listing services on an invoice without separately pricing them does not remove the embedded service charges from the taxable base; the charges must be both separately stated and separately priced to qualify for nontaxable treatment.

Fabrication labor

When a seller fabricates, assembles, or manufactures tangible personal property for a customer and transfers title to the finished product, the labor charges for fabrication are part of the taxable sales price even if separately stated. Fabrication labor is considered part of the sale of tangible personal property rather than a nontaxable service. This rule does not apply to contractors who incorporate materials into real property under an installation or construction contract, where the contractor is treated as the consumer of the materials.

Burden of proof

The burden of proving that a sale is nontaxable rests on the seller unless the seller takes a valid exemption certificate or resale certificate from the purchaser. When a seller claims that a charge is for a nontaxable service, the seller must be able to document the nature of the service and establish that it falls outside the enumerated taxable services.

Source: Georgia DOR Letter Ruling SUT-2014-01 | Georgia DOR Letter Ruling SUT-2017-04 | Georgia DOR Letter Ruling SUT-2014-13 | Georgia DOR – What is Subject to Sales and Use Tax?

Georgia imposes separate penalties for late filing and late payment of sales and use tax returns, along with monthly interest on unpaid tax. These penalties and interest accrue in addition to the underlying tax liability and can be assessed simultaneously. The combined total of the late filing penalty and the late payment penalty cannot exceed the greater of $25 or 25 percent of the tax due on the return due date.

Late filing penalty

A dealer who fails to file a sales and use tax return by the due date is subject to a late filing penalty equal to the greater of $5 or 5 percent of the tax due. An additional penalty of 5 percent is assessed for each additional month or fraction of a month the return remains unfiled, subject to the combined cap described above.

Late payment penalty

A dealer who fails to pay the full amount of sales and use tax by the due date is subject to a late payment penalty equal to the greater of $5 or 5 percent of the unpaid tax. This penalty continues to accrue for each month or fraction of a month the tax remains unpaid, subject to the combined cap.

Penalty cap

The combined total of the late filing penalty and the late payment penalty cannot exceed the greater of $25 or 25 percent of the tax due on the return due date. This cap applies separately to each return period.

Interest on past-due tax

Interest on past-due sales and use tax accrues monthly from the date the tax is due until the date the tax is paid. Under O.C.G.A. § 48-2-35, interest accruing for months prior to July 1, 2016 accrued at a rate of 12 percent annually (1 percent per month). Interest accruing beginning July 1, 2016 accrues at an annual rate equal to the Federal Reserve prime rate plus 3 percent. The Department reviews and may adjust this variable interest rate each January. Interest is separate from and in addition to penalties.

Electronic filing and payment requirement

Any taxpayer who owes more than $500 in sales and use tax on any return must file all associated returns and remit all tax payments electronically. Under O.C.G.A. § 48-2-32(f) and Ga. Comp. R. & Regs. r. 560-3-2-.26, failure to file electronically when required results in a penalty equal to the greater of $25 or 5 percent of the tax due, and failure to pay electronically when required results in a 10 percent penalty.

Penalty waiver

The Department of Revenue may waive penalties in whole or in part if it determines that reasonable cause exists. Under O.C.G.A. § 48-2-43, reasonable cause may exist where the failure to comply with tax requirements was not the result of purposeful disregard of those requirements. The Department evaluates each waiver request on its own merits, taking into account documentation provided and the taxpayer's tax compliance history. Taxpayers may request a penalty waiver through the Georgia Tax Center.

Source: Georgia DOR – Penalty and Interest Rates

Georgia law imposes time limits on how far back the Department of Revenue may assess additional sales and use tax and requires dealers to maintain supporting books and records. These limitations protect taxpayers from indefinite audit exposure while preserving the Department's ability to audit returns and assess deficiencies within a reasonable window.

General three-year assessment period

The Georgia Department of Revenue normally has three years in which to assess additional sales and use tax, according to official Department guidance. This three-year period applies to timely filed returns. Once the three-year period expires, the Department's authority to assess additional tax for that filing period generally ends, subject to the exceptions discussed below. The period begins to run when a return is filed.

Extended period for substantial omissions

When a taxpayer substantially understates the amount that should have been reported on a filed return, the assessment period extends beyond three years. The Department's published guidance does not define the precise threshold for "substantial" understatement for sales and use tax purposes or specify the length of the extended period. Practitioners should consult the controlling statute (O.C.G.A. § 48-2-49) and applicable regulations for the specific threshold and extended period. In the income tax context, Georgia law extends the assessment period to six years when a taxpayer omits from gross income an amount exceeding 25 percent of gross income stated in the return; whether the same threshold and period apply to sales and use tax substantial omissions is not addressed in the Department's published FAQs.

Unlimited assessment period for non-filers

When a dealer fails to file a required sales and use tax return, the statute of limitations does not begin to run, and the Department may assess tax at any time. This creates unlimited audit exposure for dealers who have nexus in Georgia but do not file returns. Remote sellers who meet or exceed the economic nexus threshold but fail to register and file remain subject to assessment for all unfiled periods, with no time limit. Dealers facing exposure for unfiled periods may be able to limit the lookback period by voluntarily registering or entering into a voluntary disclosure agreement with the Department before the Department initiates contact, although the specific terms and availability of such relief are governed by the Department's voluntary disclosure policies and are beyond the scope of this section.

Fraudulent returns

Georgia law does not impose a statute of limitations when a return is fraudulent or filed with intent to evade tax. In such cases, the Department may assess tax at any time. The Department's FAQ does not elaborate on the standard for fraud or intent to evade; practitioners should refer to O.C.G.A. § 48-2-49 and case law interpreting fraud in the Georgia tax context.

Record retention requirement

Dealers must maintain books and records for sales and use tax purposes for a period of no less than three years. This retention period corresponds to the general three-year assessment limitation. Records subject to retention include sales invoices, purchase invoices, exemption certificates, resale certificates, and other documents necessary to substantiate the amounts reported on filed returns. The Department may examine these records during an audit. Failure to maintain adequate records may result in an estimated assessment based on the best information available to the auditor.

Refund claims

A claim for refund of sales or use tax must be filed within three years after the later of the date the tax was paid or the due date of the return, including extensions. This three-year limitation ensures symmetry between the taxpayer's ability to claim refunds and the Department's authority to assess additional tax.

Limitations on information in published FAQs

The Department's published FAQ on statute of limitations addresses general periods and does not specify the detailed rules governing tolling, extensions by agreement, or the interaction between assessment periods and pending appeals or litigation. For questions involving these issues—such as whether a pending bankruptcy stay tolls the limitations period, or whether the period may be extended by written agreement between the dealer and the Department—practitioners should consult O.C.G.A. § 48-2-49, the Georgia sales and use tax regulations, and applicable case law. The FAQ is a helpful starting point but is not a complete statement of the statute of limitations rules.

Source: Georgia DOR Statute of Limitations FAQ | Georgia DOR File & Pay

Georgia exempts from sales and use tax purchases of machinery, equipment, industrial materials, packaging supplies, and energy when those items are necessary and integral to the manufacture of tangible personal property at a manufacturing plant in Georgia. The exemption is authorized by O.C.G.A. § 48-8-3.2 and implemented through Ga. Comp. R. & Regs. r. 560-12-2-.62. The energy exemption excludes the sales and use tax for educational purposes and local sales and use taxes for educational purposes authorized by local constitutional amendment.

Machinery and equipment exemption

Machinery or equipment is exempt when it is necessary and integral to the manufacture of tangible personal property. The regulation identifies several categories of exempt machinery and equipment:

• Machinery or equipment used to control, regulate, heat, cool, or produce energy for other machinery or equipment that is necessary and integral to manufacturing (examples include boilers, chillers, condensers, water towers, dehumidifiers, humidifiers, heat exchangers, generators, transformers, motor control centers, solar panels, air dryers, and air compressors)

• Testing and quality control machinery or equipment located at a manufacturing plant used to test the quality of industrial materials, work in process, or finished goods

• Electrical components—including starters, switches, circuit breakers, transformers, wiring, piping, cable trays, conduit, and insulation—located between a motor control center and exempt machinery or equipment or between separate units of exempt machinery or equipment

• Machinery or equipment used to maintain, clean, or repair exempt machinery or equipment

• Machinery or equipment used to provide safety for employees working at a manufacturing plant, including safety machinery and equipment required by federal or state law (examples include gloves, ear plugs, face masks, protective eyewear, hard hats, and breathing apparatuses)

• Machinery or equipment used to condition air or water to produce conditions necessary for the manufacture of tangible personal property

The exemption applies whether the machinery or equipment is stationary, mobile, portable, or handheld.

Industrial materials and packaging supplies

Industrial materials are tangible personal property that is incorporated into or becomes a component part of tangible personal property being manufactured, or that is directly used upon, applied to, or comes into direct contact with tangible personal property being manufactured during the manufacturing process.

Packaging supplies are materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale. The regulation specifies that materials purchased at a retail establishment for consumer use are not exempt.

Repair and replacement parts

Repair or replacement parts are exempt when used to maintain, repair, restore, install, or upgrade machinery or equipment that is necessary and integral to the manufacture of tangible personal property. The regulation provides that examples include oils, greases, hydraulic fluids, coolants, lubricants, machinery clothing, molds, dies, waxes, jigs, and other interchangeable tooling.

Energy used in manufacturing

Energy that is necessary and integral to the manufacture of tangible personal property at a manufacturing plant in Georgia is exempt from state and most local sales and use taxation. The statute defines "energy" as natural or artificial gas, oil, gasoline, electricity, solid fuel, wood, waste, ice, steam, water, and other materials necessary and integral for heat, light, power, refrigeration, climate control, processing, or any other use in any phase of the manufacture of tangible personal property. The energy exemption does not apply to the sales and use tax for educational purposes levied pursuant to Article VIII, Section VI, Paragraph IV of the Georgia Constitution or to local sales and use taxes for educational purposes authorized by or pursuant to local constitutional amendment.

Definition of manufacturing

The statute provides that the manufacture of tangible personal property commences as industrial materials are received at a manufacturing plant and concludes once the packaging operation is complete and the tangible personal property is ready for sale or shipment, regardless of whether the manufacture of tangible personal property occurs at one or more separate manufacturing plants.

Substantial purpose test for dual-use items

For machinery or equipment that has multiple purposes, the exemption applies if the machinery or equipment's substantial purpose is a use that is necessary and integral to manufacturing. The statute defines "substantial purpose" as the purpose for which an item of tangible personal property is used more than one-third of the time of the total amount of time that the item is in use. Alternatively, instead of time, the purpose may be measured in terms of other applicable criteria, including the number of items produced.

Documentation requirements

To claim the manufacturing exemption, a purchaser must provide the seller with a properly completed Form ST-5 Certificate of Exemption claiming the exemption authorized by O.C.G.A. § 48-8-3.2, or the purchaser must furnish the seller with a copy of the purchaser's direct pay permit. When a certificate of exemption or direct pay permit has not been previously obtained and submitted, and tax is remitted on the purchase or lease of exempt property, the purchaser or lessee may apply to the Commissioner for a refund.

Effective dates

The machinery and equipment exemption and the industrial materials and packaging supplies exemption became effective January 1, 2013. The energy exemption was phased in over a four-year period from 2013 through 2016. Projects that qualified as "competitive projects of regional significance" under O.C.G.A. § 48-8-3(93) received the full exemption immediately without being subject to the phase-in period, according to the statute.

Source: O.C.G.A. § 48-8-3.2 (via Georgia DOR) | Ga. Comp. R. & Regs. r. 560-12-2-.62