Georgia's Sales Tax Rate and What It Covers
Georgia's state sales tax is 4 percent. This is the base rate that applies statewide to most retail purchases. However, your total sales tax bill is usually higher because counties and cities in Georgia add their own local sales taxes on top of the state rate. The combined rate you actually pay depends on where you make the purchase.
The 4 percent state tax applies to tangible goods—physical items you can touch and take home. This includes clothing, groceries, electronics, furniture, and most other retail products. Services like haircuts, car repairs, and restaurant meals are also taxed in Georgia. A few categories are exempt, including prescription medications and certain medical equipment, but most everyday purchases are subject to the full combined rate.
Key Takeaways
- Georgia's state sales tax is 4 percent, but you pay more because counties and cities add local taxes that range from 1 to 4 percent on top of that.
- The combined rate you pay at checkout depends on the specific county and city where you make your purchase, not where you live.
- Groceries, prescription drugs, and some medical equipment are exempt from Georgia sales tax, but prepared foods and restaurant meals are taxed.
- Online purchases from out-of-state sellers are subject to Georgia sales tax if the seller has a physical presence in the state or meets federal thresholds for remote sellers.
How Local Taxes Add to Your Bill
Every county in Georgia adds a local sales tax on top of the 4 percent state rate. These county rates range from 1 percent to 4 percent, depending on the county. Some counties also allow individual cities within them to add an additional local tax. This means your total sales tax can be anywhere from 5 percent to 8 percent or higher, depending on exactly where you shop.
For example, if you shop in Fulton County (which includes Atlanta), you pay the 4 percent state tax plus Fulton County's local tax. If you shop in a city within Fulton County that has added its own local tax, that gets added too. The cashier's register is programmed with the correct combined rate for that location, so you do not have to calculate it yourself—but knowing your local rate helps you understand what you are paying.
You can find your county's local sales tax rate by searching online for "[your county name] Georgia sales tax rate" or by calling your county tax assessor's office. The rate that applies is determined by where the sale happens, not where you live, so if you cross county lines to shop, the tax rate changes.
What Is and Is Not Taxed in Georgia
Most items you buy in Georgia are subject to sales tax, but some important categories are not. Unprepared groceries—raw meat, fresh vegetables, bread, milk, and other food you cook at home—are exempt from Georgia sales tax. However, prepared foods, restaurant meals, and items from a deli counter are taxed at the full rate. Candy and soft drinks are also taxed.
Prescription medications are not subject to Georgia sales tax, but over-the-counter medicines and vitamins are taxed. Medical equipment prescribed by a doctor, such as wheelchairs or oxygen equipment, is also exempt. Clothing and shoes are taxed in Georgia, unlike in some other states that exempt apparel.
Services are generally taxable in Georgia. This includes haircuts, dry cleaning, car repairs, and plumbing work. However, some services are exempt—for instance, labor on agricultural products and certain professional services may not be taxed. If you are unsure whether a specific item or service is taxed, ask the seller or contact your county tax assessor.
Online and Out-of-State Purchases
If you order something online from a company based outside Georgia, you may still owe Georgia sales tax. The rule depends on whether the seller has a physical presence in Georgia—such as a warehouse, office, or store. If they do, they must collect Georgia sales tax on your order. If they do not have a physical presence in Georgia, they are not required to collect the tax at checkout.
However, federal law now requires large remote sellers—those with more than $600,000 in annual sales nationwide—to collect sales tax in every state where they have customers, even without a physical location. This means most major online retailers now collect Georgia sales tax automatically. If a seller did not collect tax and you made a purchase, you may be responsible for paying the tax yourself, though this is rarely enforced for individual purchases.
Who Collects and Where the Money Goes
The retailer—the store or online seller—is responsible for collecting sales tax from you at the point of sale. They then send that tax money to the Georgia Department of Revenue. The state keeps the 4 percent portion and distributes the local portions to the appropriate county and city governments.
Local governments use their sales tax revenue for schools, roads, public safety, and other services. Because of this, sales tax rates can change when a county or city votes to increase funding for a specific project. Some counties have temporary sales tax increases that expire after a set number of years, so rates do shift occasionally.
Sales Tax on Major Purchase Categories
| Category | Taxed? | Notes |
|---|---|---|
| Groceries (unprepared) | No | Raw ingredients and food you prepare at home are exempt |
| Restaurant meals and prepared food | Yes | Includes deli items, takeout, and fast food |
| Prescription medications | No | Requires a valid prescription |
| Over-the-counter medicines | Yes | Vitamins and pain relievers are taxed |
| Clothing and shoes | Yes | Georgia taxes apparel at the full rate |
| Gasoline | Yes | Plus state and federal excise taxes |
| Services (haircuts, repairs) | Yes | Most services are taxable in Georgia |
Frequently Asked Questions
What is the total sales tax rate where I live?
Your total rate is 4 percent (state) plus your county's local rate, which ranges from 1 to 4 percent. Some cities add an additional local tax. Search online for "[your county] Georgia sales tax" or call your county tax assessor's office to find your exact combined rate.
Do I have to pay sales tax on groceries?
No, unprepared groceries like raw meat, fresh produce, and bread are exempt. However, prepared foods from a deli, restaurant meals, candy, and soft drinks are all taxed at your full local rate.
Why do I see different tax rates at different stores?
The tax rate depends on the location where you make the purchase, not where you live. If you shop in different counties or cities, the combined local and state rate changes. Even within the same city, some areas may have different rates if they are in different tax districts.
Do I owe Georgia sales tax on items I buy from out-of-state websites?
If the seller has a physical presence in Georgia or is a large remote seller (over $600,000 in annual sales), they must collect Georgia sales tax. Most major online retailers now collect it automatically. If they did not, you may technically owe the tax, though it is rarely enforced for individual purchases.
Are services like haircuts and car repairs taxed in Georgia?
Yes, most services including haircuts, dry cleaning, car repairs, and plumbing are subject to Georgia sales tax. A few professional services may be exempt, so ask the provider if you are unsure.