Georgia's Sales Tax Rate and What It Covers

Georgia's state sales tax rate is 4 percent. When you buy something at a store, that 4 percent gets added to your bill. However, most counties and cities in Georgia add their own local sales tax on top of the state rate, so your total sales tax at checkout is usually between 6 and 10 percent depending on where you are.

The state tax applies to most goods you buy in person or online — clothing, electronics, groceries, furniture, and similar items. Some things are taxed differently or not taxed at all. Food you buy at a grocery store to cook at home is not taxed, but food you buy ready to eat at a restaurant is taxed. Prescription medicines are not taxed, but over-the-counter medicines are.

If you order something online from a seller outside Georgia, you may still owe Georgia sales tax. The rule changed in recent years, and now most online retailers collect and send Georgia sales tax on your behalf, even if the company is based somewhere else.

Key Takeaways

  • Georgia's state sales tax is 4 percent, but your total at checkout includes local taxes added by your county or city, usually bringing it to 6 to 10 percent.
  • Groceries and prescription medicines are not taxed in Georgia, but restaurant meals and over-the-counter drugs are.
  • Online purchases from most major retailers are now subject to Georgia sales tax, collected by the seller at the time of purchase.
  • The local sales tax rate varies by location, so the same item costs different amounts in different Georgia cities.

How Local Sales Tax Works in Georgia

Georgia allows counties and cities to add their own sales tax on top of the state 4 percent. These local rates range from 2 to 6 percent depending on where you live. A county might add 3 percent, and then a city within that county might add another 1 percent, so your total could be 8 percent.

The local tax money stays in your county or city and typically funds schools, roads, or other local services. If you live in one place and shop in another, you pay the sales tax rate of the place where you make the purchase, not where you live. So if you live in a county with 6 percent total tax but drive to a neighboring county with 7 percent total tax to shop, you pay 7 percent.

You can find your exact local rate by looking up your county and city on the Georgia Department of Revenue website, or by asking a cashier. The rate does not change often, but it can shift if a city or county votes to raise or lower it.

What Is and Is Not Taxed in Georgia

Understanding what gets taxed helps you predict your final bill. Groceries are not taxed — this includes meat, produce, dairy, bread, canned goods, and other food you buy to prepare at home. However, prepared foods are taxed. If you buy a rotisserie chicken from the grocery store deli, you pay sales tax on it. If you buy a raw chicken to cook yourself, you do not.

Medicines follow a similar rule. Prescription medications are not taxed. Over-the-counter medicines like pain relievers, cold medicine, and allergy pills are taxed. Vitamins and supplements are also taxed.

Clothing and shoes are taxed in Georgia. Books are taxed. Gasoline is taxed. Haircuts and other services are taxed. Utilities like electricity and water are not taxed. If you are unsure whether something is taxed, the cashier can tell you, or you can check the Georgia Department of Revenue website for a full list.

Sales Tax on Online and Out-of-State Purchases

If you order from Amazon, Walmart, Target, or most other major online retailers, Georgia sales tax is collected at checkout and sent to the state. This happens even if the company is based in another state. The retailer calculates the tax based on your shipping address in Georgia.

Small online sellers — those with very low sales volume — may not be required to collect Georgia sales tax. If you buy from a small seller and no tax is collected, you are technically supposed to report that purchase on your Georgia tax return. In practice, most people do not, but the rule exists.

If you order something from outside the United States and it is shipped to Georgia, you may owe sales tax when it arrives. The shipping company or customs broker will tell you if tax is due before they deliver it.

Who Collects and Where the Money Goes

Retailers collect sales tax from you at the point of sale and send it to the Georgia Department of Revenue. The state keeps its 4 percent share and distributes the local portions to the counties and cities where the purchases happened. This happens monthly or quarterly depending on the retailer's size.

The state uses its share of sales tax revenue for general state operations. Local governments use their share for schools, public safety, transportation, and other services. Some counties and cities have voted to use sales tax revenue for specific projects like stadium construction or transit systems.

You do not file anything or claim anything related to sales tax as a regular shopper. The retailer handles all the paperwork and payment to the state.

Sales Tax on Services and Special Situations

Most services in Georgia are taxed. Haircuts, car repairs, plumbing, electrical work, and similar services are subject to sales tax. However, some services are not taxed. Legal services, medical services, and dental services are generally not taxed. If you hire a lawyer or see a doctor, you do not pay sales tax on the bill.

Labor and materials are sometimes taxed differently. If a contractor charges you separately for labor and materials, the materials are taxed but the labor may not be, depending on the type of work. Ask the contractor to break down the bill if you want to know exactly what is taxed.

Rental items like cars, hotel rooms, and equipment are taxed in Georgia. If you rent a car for a week, you pay sales tax on the rental fee. If you rent a hotel room, you pay sales tax plus a separate hotel occupancy tax that varies by city.

How to Calculate Your Total Cost

To find your total cost with tax, multiply the price by your local sales tax rate as a decimal. If something costs $100 and your sales tax is 7 percent, multiply $100 by 0.07 to get $7 in tax, for a total of $107.

Most stores show the tax separately on your receipt so you can see exactly how much you paid. Online retailers show it at checkout before you confirm your purchase. If you are budgeting for a large purchase, add your local sales tax rate to the listed price to know what you will actually pay.

If you are buying something that is not taxed — like groceries or prescription medicine — the price you see is the price you pay. No additional tax is added at checkout.

Frequently Asked Questions

What is the total sales tax rate where I live?

Georgia's state rate is 4 percent, but your total depends on your county and city. Look up your location on the Georgia Department of Revenue website, or ask a cashier at a local store. Rates range from 6 to 10 percent across the state.

Do I pay sales tax on groceries in Georgia?

No. Food you buy at a grocery store to cook at home is not taxed. However, prepared foods like rotisserie chicken, deli sandwiches, and restaurant meals are taxed. The rule is whether the food is ready to eat.

Why do I pay different sales tax amounts in different cities?

Each county and city sets its own local sales tax rate on top of Georgia's 4 percent state rate. A city might add 2 percent while a neighboring city adds 3 percent. You pay the rate of the place where you make the purchase.

Do I owe sales tax on online purchases from out-of-state sellers?

Yes, most major online retailers now collect Georgia sales tax at checkout based on your shipping address. Smaller sellers may not be required to collect it, but you are technically supposed to report those purchases on your tax return.

Are services like haircuts and car repairs taxed in Georgia?

Yes, most services are taxed. Haircuts, repairs, and labor are subject to sales tax. However, professional services like legal information, medical care, and dental work are not taxed.