GA Georgia State sales tax rates
STATEWIDE SALES TAX RATE
ECONOMIC SALES THRESHOLD
Do you need to collect sales tax in Georgia?
You’ll need to collect sales tax in Georgia if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
The state sales tax rate of Georgia is 4%, but counties and cities may impose additional taxes. For example, as of December 2021, Fulton County has a 3% sales tax rate, and Atlanta has an additional 1.9% rate.
Do you have physical nexus in Georgia?
Georgia considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business
- An employee present
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in Georgia (specifically in the seller’s vehicle/fleet, etc.)
- Independent contractors or other representatives in Georgia
Do you have economic nexus in Georgia?
Effective January 1, 2020, Georgia considers vendors who make more than $100,000 in sales annually in the previous or current calendar year or more than 200 transactions in the state to have economic nexus. As a result, vendors are obligated to collect sales tax from buyers in the state.
Is what you’re selling taxable?
Services in Georgia are generally not taxable.
Tangible products are taxable in Georgia, with a few exceptions. These exceptions include certain groceries, prescription medicine and medical devices, and machinery and chemicals used in research and development.
Use tax is applicable if an item was not taxed at the point-of-sale in Georgia, or if a non-exempt item was brought into the state.
Is SaaS taxable in Georgia?
SaaS is considered non-taxable in Georgia because it is not one of the services enumerated as taxable and is not available in tangible media.
How to Collect Sales Tax in Georgia
For many states, the sales tax rate you collect depends on whether you are based in-state or out-of-state.
How to Collect Sales Tax in Georgia if You are Based in Georgia
Georgia is a destination-based sales tax state. So if you live in Georgia, collect sales tax based on the sales tax rate at your buyer’s address.
The Georgia sales tax rate is 4.00%
How to Collect Sales Tax in Georgia if you are Not Based in Georgia
Georgia wants sellers who made a sale into Georgia from outside the state to also charge sales tax based on the destination of the buyer.
Should you collect sales tax on shipping charges in Georgia?
The Department of Revenue had this to say on shipping taxability, “Where taxable tangible personal property is sold at retail and the seller makes a delivery charge, the charge is taxable regardless of whether the charge is optional (i.e., not required to complete the underlying sale of the tangible personal property) or separately stated.”
Therefore, you should collect tax on shipping charges if you are shipping a taxable item. it doesn’t matter if it’s separately stated or optional.
When are Returns Due?
When you file and pay Georgia sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Georgia?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Georgia, you will be required to file and remit sales tax either monthly, quarterly or annually.
Georgia sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.