Georgia's statewide sales tax is 4 percent
Georgia charges a 4 percent sales tax on most goods and services you buy. This is the base rate set by the state. However, the total tax you pay at checkout is usually higher because counties and cities add their own local sales taxes on top of the state rate.
The combined rate you actually see on your receipt depends on where you are shopping in Georgia. A purchase in Atlanta will have a different total tax than the same purchase in a small town an hour away. This guide explains how Georgia's sales tax works, what the combined rates are in different areas, and what items are taxed or exempt.
Key Takeaways
- Georgia's state sales tax is 4 percent, but your total tax rate includes local additions that vary by county and city.
- Combined sales tax rates in Georgia range from 4 percent to 10.5 percent depending on your location.
- Groceries, prescription medications, and some medical equipment are exempt from Georgia sales tax.
- Local tax rates can differ even within the same county, so the rate in one city may not match a neighboring city.
- You can look up the exact combined rate for any Georgia address using the Department of Revenue's tax rate finder.
How local taxes add to the state rate
On top of Georgia's 4 percent state tax, counties add their own sales tax, and cities can add even more. These local taxes are collected at the same time as state tax and appear as one line item on your receipt, but they go to different government budgets.
For example, Fulton County (which includes Atlanta) adds 3 percent to the state rate, bringing the county total to 7 percent. But within Fulton County, the city of Atlanta adds another 1.5 percent, so the combined rate in Atlanta is 8.5 percent. A few miles away in unincorporated Fulton County, the rate is only 7 percent.
This means you cannot assume the rate is the same everywhere in a county. The exact rate depends on the specific address where you make the purchase. A store on one side of a city line may charge a different rate than an identical store on the other side.
Combined sales tax rates by major Georgia cities
| City | County | Combined Rate |
|---|---|---|
| Atlanta | Fulton | 8.5% |
| Savannah | Chatham | 7% |
| Augusta | Richmond | 8% |
| Columbus | Muscogee | 8% |
| Marietta | Cobb | 8.5% |
| Athens | Clarke | 7% |
These rates are current but can change when local governments vote to adjust their taxes. The rates shown are for purchases made within city limits. Unincorporated areas of the same county may have lower rates because they do not include the city tax.
The smallest combined rate in Georgia is 4 percent (state only, in areas with no county or city addition), while the highest reaches 10.5 percent in some municipalities. Most populated areas fall between 7 and 8.5 percent.
What is and is not taxed in Georgia
Not everything you buy in Georgia is subject to sales tax. The state exempts certain items that are considered necessities or have special status under state law.
Exempt items include: groceries and food for home consumption, prescription medications, insulin and diabetic supplies, prosthetic devices and mobility aids, hearing aids, and certain medical equipment prescribed by a doctor. Clothing is also exempt in Georgia, though accessories like belts, scarves, and jewelry are taxed.
Taxed items include: restaurant meals and prepared foods, non-prescription drugs and vitamins, gasoline, alcohol, tobacco, and most services. Services like haircuts, repairs, and professional fees are generally taxable in Georgia.
The line between food and non-food can be tricky. Hot prepared food is taxed even if you take it home. Cold deli items like a sandwich made to order may or may not be taxed depending on how the store categorizes it. When in doubt, ask the cashier before you pay.
Finding the exact tax rate for your address
The Georgia Department of Revenue maintains an online tax rate finder that shows the combined sales tax for any specific address in the state. You can search by street address, city, or ZIP code.
To use it, visit the Department of Revenue website and look for the "Sales Tax Rate Lookup" tool. Enter your address or the address where you plan to make a purchase. The tool will show you the state rate, the county rate, the city rate (if applicable), and the combined total.
This is the most reliable way to know the exact rate you will pay, because it accounts for all local additions and city boundaries. Rates can change, so if you are planning a large purchase or comparing prices between locations, checking the lookup tool takes only a minute.
Sales tax on online and mail orders
Georgia requires online retailers to charge sales tax on orders shipped to Georgia addresses, even if the retailer is based outside the state. This applies to most major retailers and marketplaces.
The tax rate applied to your online order is based on the delivery address you provide, not where the seller is located. If you order something to be delivered to an Atlanta address, Atlanta's combined rate applies. If you have it shipped to a different Georgia city, that city's rate applies instead.
Some smaller online sellers may not charge Georgia sales tax, but this does not mean the purchase is tax-free. Georgia law requires you to report and pay use tax on untaxed purchases, though this is rarely enforced for individual consumers. For practical purposes, assume that any purchase from a major retailer will include the appropriate sales tax.
How sales tax affects your budget
Sales tax is added to the price shown on the shelf or advertised online, so the amount you pay at checkout is higher than the listed price. Understanding the rate in your area helps you budget more accurately.
For example, if you buy a $100 item in Atlanta where the combined rate is 8.5 percent, you will pay $108.50 total. The same item in Savannah at 7 percent would cost $107. Over time, these differences add up, especially on large purchases like appliances or furniture.
When comparing prices between stores in different cities, remember to factor in the tax rate. A lower advertised price in a high-tax area might actually cost more than a higher price in a low-tax area once tax is included.
Frequently Asked Questions
Does Georgia have a state income tax?
Yes, Georgia has a state income tax separate from sales tax. This article covers only sales tax, which is charged on purchases. Income tax is withheld from paychecks and filed annually.
Can I get a sales tax refund if I buy something and return it?
Yes. When you return an item for a refund, the sales tax is refunded along with the purchase price. If you exchange an item for a different one, you pay tax only on the difference in price.
Is there sales tax on used items?
Sales tax applies to used items sold by retailers, including used cars, used furniture, and used electronics. Private sales between individuals are not subject to sales tax, but proving a sale is private can be difficult.
What about sales tax on services like haircuts or car repairs?
Most services in Georgia are subject to sales tax. Haircuts, car repairs, plumbing, and similar services are taxed at the combined rate for your location. A few services like medical care are exempt.
Do I pay sales tax when I buy something out of state and bring it to Georgia?
Not at the point of purchase. However, Georgia law requires you to pay use tax on items bought out of state and brought into Georgia. This is rarely enforced for individual consumers, but technically the tax obligation exists.