Georgia Sales Tax Guide For Businesses

Know everything about sales tax in Georgia and get updated information to navigate tax regulations effectively.

Quick highlights on Georgia Sales tax

Sales tax rates

Georgia state sales tax range

6% - 9%

Base sales tax rate


Local Rate Range

2% - 5%

Economic Nexus Rules

Sales Threshold



Transactions Threshold

200 transactions

Reference Period

Current or Previous Calendar Year

Filing Details

Georgia Sales tax Calculator

Frequently Asked Questions

As a business, do I need to collect Georgia sales tax?

Businesses are required to collect sales tax in Georgia if they have a sales tax nexus in the state. This includes having a physical presence or reaching a specific sales level, which establishes an economic nexus. This is why understanding Georgia state sales tax obligations is crucial for compliance.

Do I have a physical nexus in Georgia?

A physical nexus in the state of Georgia is established if your business has a physical presence in the state. Following are examples of physical presence that can trigger a physical nexus in the state of Georgia:

  • Contractors (customer facing roles): "Contractors" are usually considered independent entities or individuals. They operate their own businesses and are not typically under the direct control of the hiring company. The presence of contractors engaged in customer-facing roles, such as marketing, sales, support, or servicing, usually triggers a physical nexus in the state.
  • Employees (customer facing roles): In the context of establishing a physical nexus, "employees" refer to individuals who work for your business and are physically present in the respective state. Employees engaged in customer-facing roles, such as marketing, sales, support, or servicing, usually trigger a physical nexus in this state.
  • Office: An "office" in the context of establishing a physical nexus refers to a physical location or workspace that a business maintains within the respective state. This could include a dedicated facility where administrative tasks are carried out, meetings are conducted, or business operations are managed.
  • Warehouse: A "warehouse" in the context of establishing a physical nexus refers to a physical facility used for storing goods, inventory, or products within the respective state. Businesses may utilize warehouses for various purposes, such as storage, distribution, or fulfillment of orders.

How do I know if I have an economic nexus in Georgia?

An economic nexus in Georgia is determined by your sales volume. If the annual sales of your enterprise exceed the given threshold in Georgia, you must register for an Georgia sales tax permit, collect tax on sales shipped to Georgia, and remit that sales tax to the state revenue authorities.

In Georgia, an economic nexus is established for your enterprise if your sales in the state exceed 100000 OR number of transactions exceed 200, based on the sales from the Current or Previous Calendar Year.

While calculating the sales or number of transactions for determining economic nexus, Georgia requires transactions made through marketplaces, like Amazon, eBay, etc. to be excluded. Transactions made for resale purposes should be excluded while determining whether a business has exceeded the Georgia economic nexus threshold. Finally, the sale of products that are non-taxable in Georgia should be included while determining the establishing of nexus in Georgia.

For an in-depth understanding, read our comprehensive guide on economic nexus reference periods.

Which goods are taxable in Georgia?

For businesses in Georgia, local sales tax is applicable on the sale of all tangible personal property sold at retail in the state, and certain services. While services are generally exempt from sales tax in Georgia, but certain enumerated services like sale of accommodations, in-state transportation of individuals, sales of admissions, and charges for participation in games and amusement activities, services necessary to complete the sale of a taxable property, are subject to sales tax, etc.

Businesses need to stay updated on current tax information as well as the associated obligations and exemptions to avoid any compliance issues.

What items are exempt from Georgia sales tax?

Georgia exempts several items from sales tax- major components or repair parts installed in military aircraft, vehicles, or missiles, paper stock when used to print catalogs for distribution outside Georgia, Food and food ingredients and prepared food sold and served to pupils and employees of public schools as part of a school lunch program, to name a few.

Understanding these exemptions is vital for businesses to calculate sales tax accurately in Georgia. If you are uncertain about the tax status of specific items, seek guidance from professionals at Galvix.

Is SaaS taxable in Georgia?

In Georgia, the sales tax laws consider certain types of software, SaaS, and related services as taxable. These include:

  • SaaS - On premises: This refers to Software as a Service installed and operated from the customer's in-house server and computing infrastructure rather than a third-party server.
  • Software delivered on tangible media: Software distributed and obtained through physical means, such as CDs or DVDs.

However, sales tax laws change frequently, so it is vital to remain up-to-date with the latest regulations on the sales tax of Georgia for digital goods. Checkout our latest blog to learn more about SaaS sales tax.

What is the deadline to obtain a Georgia sales tax permit after establishing a nexus?

If a business has a physical nexus in Georgia, it must obtain a sales tax permit from the Department of Revenue and start collecting sales tax on transactions as on the date of establishing the physical nexus. Businesses that establish an economic nexus in Georgia need to obtain a sales tax permit and start collecting taxes, latest by next transaction, from the date they establish the economic nexus.

It is important to obtain the sales tax permit and start collecting taxes as per the deadlines mentioned above, in order to avoid back taxes and penalties.

How can one get a Georgia sales tax permit?

To obtain a sales tax permit in Georgia, businesses need to register with the Department of Revenue. This process is streamlined and can be completed online through the online portal provided by Department of Revenue. To comply with Georgia's sales tax laws, businesses need to get a tax permit.

To get a sales tax permit in Georgia, you need to provide detailed information about the business, such as the type of business, FEIN, personal details of the owner, business registration, nature of business activities, and several others on the Department of Revenue website. You will then get a sales tax number. This number is important for collecting, reporting, and paying the sales tax to the state government.

For detailed instructions and guidance on the registration process, connect with the experts at Galvix.

How should a business collect sales tax in Georgia?

Businesses in Georgia must collect sales tax from customers on relevant transactions. The collected tax must align with the Georgia sales tax rate, which varies by location. Enterprises should regularly verify the sales tax rates to ensure accurate collection. To learn the best practices, explore our sales tax compliance guide.

Where can I file my Georgia sales tax return?

You can file the Georgia sales tax return by visiting the online portal provided by the Department of Revenue at:

When should a business file Georgia sales tax return?

Businesses in Georgia must file state sales tax returns periodically. The frequency, i.e., monthly, quarterly, or annually, is determined by the state based on the tax liability.

Typically, sales tax and use taxes is due monthly, with returns and remittances filed on or before the 20th day after month end for the previous month’s sales. However, businesses can request a different filing status based on their annual tax liability.

In general, the following are the filing deadlines for Georgia, based on the assigned filing frequency to you by the state:

  • Monthly Filing: 20th day after month end
  • Quarterly Filing: 20th day after each quarter end
  • Yearly Filing: 20th day after year end

It’s crucial to adhere to the assigned schedule to avoid penalties.

How does Georgia determine the sales tax filing frequency for my business?

The Department of Revenue will assign you a filing frequency. Typically, this is determined by the size or sales volume of your business. State governments generally ask larger businesses to file more frequently.

Generally, sales tax in Georgia is due monthly, with returns and remittances to be filed on or before 20th day after month end. You may request quarterly filing status if your annual tax liability is less than 2400. You may request annual filing status if the tax liability for the year is less than 600.

Are there any benefits if a business files Georgia sales tax on time?

In Georgia, vendors can receive compensation, with a 3% rate applied to the first $3,000 of state and local sales and use tax, and a 0.5% rate on any amount beyond that initial threshold.

What penalty is applicable if a business fails to file Georgia sales tax?

Penalties are applicable if a business fails to file and pay sales tax before the due date in Georgia. Failure to file penalties incur if the return isn't submitted by the deadline, with rates of the greater of 5% of the tax or $5, plus an extra 5% or $5 for each subsequent late month, capped at 25% of the tax or $25. Failure to pay penalties arises if the tax isn't paid by the return's due date, with rates mirroring those for failure to file penalties, also capped at 25% of the tax or $25. For false or fraudulent returns, a penalty of 50% of the tax due applies. More details about this can be found here.

What are the key things to remember while filing sales tax in Georgia?

While filing taxes in Georgia, businesses must remember to account for sales tax holidays and potential tax discounts. Sales tax holidays offer temporary tax exemptions on specific items, and tax discounts may be available for timely filings during the reporting period. Staying updated on these can maximize compliance efficiency.

What is the sales tax on shipping in Georgia?

Fees for delivery, transportation, freight, or shipping and handling are deemed part of the sale price and are subject to sales tax when associated with the sale of a taxable property. Hence, if a taxable item is sold and the seller levies a separate delivery fee, that fee is taxable. However, charges for delivery in connection with an exempt sale remain untaxed. The tax rate aligns with the Georgia state sales tax rate applicable to the goods sold. Businesses should levy sales tax on shipping accurately for compliance. More details about this can be found here.

Let Galvix handle sales tax for you

Galvix provides an end-to-end sales tax management service, including nexus monitoring, tax calculations, and return filing, giving you the confidence and time to focus on what matters - your business.