The sales tax in Duluth, GA is 6%. That’s 4% for the state of Georgia and 2% for Gwinnett County, applied to most retail purchases of goods and certain services within city limits. Duluth itself adds nothing on top, so every taxable transaction in the city carries the same combined rate.
What Makes Up the 6%
Georgia’s statewide sales tax is 4% on retail sales of tangible personal property and select services.1FindLaw. Georgia Code Title 48 Revenue and Taxation 48-8-30 Gwinnett County layers on another 2%: a 1% Special Purpose Local Option Sales Tax for education (E-SPLOST) that funds school construction, buses, technology, and facilities, and a 1% Local Option Sales Tax (LOST) that offsets property taxes and funds general county and municipal services.
What’s Taxed Less, or Not At All
Groceries
Food and food ingredients bought for consumption at home are exempt from the 4% state tax but still subject to the 2% county tax.2Justia. Georgia Code 48-8-3 – Exemptions So a trip to the grocery store in Duluth is taxed at 2%, not 6%. Prepared meals, restaurant food, and anything eaten on-premises don’t qualify and get taxed at the full rate.
Prescriptions and Medical Items
Prescription medications, prescription eyeglasses, contacts, and nonprescription insulin are fully exempt from both state and local sales tax. This has been Georgia law since 1984 and applies in every jurisdiction.3Georgia Department of Audits. Georgia Sales Tax Exemption for Prescription Drugs
Sales Tax Holidays
Georgia schedules two tax-free shopping periods in 2026:
- Back-to-school, July 31 to August 1: clothing up to $100 per item, school supplies up to $20 per item, and computers up to $1,000 per item.
- Energy savings, October 2 to 4: ENERGY STAR and WaterSense certified products and appliances up to $1,500 per item.
During these windows, qualifying items are free of both state and local tax. Limits apply per item, not per transaction, so multiple qualifying items in one trip each get the exemption.
If You’re Selling in Duluth
Any business that meets Georgia’s definition of a “dealer” has to register for a sales and use tax number before making taxable sales. That applies whether you sell online, in a store, or mostly wholesale and exempt goods.4Georgia Department of Revenue. Sales and Use Tax Registration – FAQ Registration is free through the Georgia Tax Center at gtc.dor.ga.gov.5Department of Revenue. Tax Registration You’ll need your EIN (or SSN for sole proprietors), your business’s legal name, and details on your activity.
Separately, every business operating in Duluth needs an Occupational Tax Certificate from the city, renewed annually.6City of Duluth. Occupational Tax That’s a local requirement on top of your state sales tax registration.
Filing and Paying
Returns are filed on Form ST-3 through the Georgia Tax Center.7Georgia Department of Revenue. ST-3 Sales and Use Tax Returns and Addendums You report gross sales, subtract exempt transactions, and calculate 6% on what remains. Businesses with four or more locations file a consolidated return. Payment options include ACH debit and credit card.
The deadline is the 20th of the month after each reporting period closes.8Department of Revenue. File and Pay Paper returns must be postmarked by that date. Most businesses file monthly; some qualify for quarterly or annual schedules based on total liability.
Penalties if You File or Pay Late
Georgia stacks two penalties when a return is late:
- Failure to file: the greater of 5% of the tax due or $5 for the first month, plus another 5% (or $5) each additional month, capped at the greater of 25% or $25.
- Failure to pay: same 5% per month on the unpaid balance, capped at 25%. This applies even if you file on time but don’t send the money.
Both are authorized under O.C.G.A. § 48-8-66.9Department of Revenue. Penalty and Interest Rates Interest also accrues monthly on unpaid tax from the original due date, at the Federal Reserve prime rate plus 3%, reviewed each January. Payments are applied first to penalties, then interest, then the tax itself, so a partial payment doesn’t stop interest from continuing to build on the remaining balance.
Willful failure to remit tax you already collected is treated more seriously. Under O.C.G.A. § 48-2-44, keeping sales tax collected from customers rather than sending it to the state carries a 10% penalty on the withheld amount, plus interest from the original due date.10Justia. Georgia Code 48-2-44 – Willful Failure to File Return or Pay Collected sales tax is considered money held in trust for the state.
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state seller who doesn’t collect Georgia tax, you owe use tax at the same combined 6% rate.11Georgia Department of Revenue. Consumers Use Tax Return You can credit any sales tax already paid to another state on the same item, so you aren’t double-taxed. Individuals who aren’t registered dealers report this on a Consumer’s Use Tax Return, which is separate from the ST-3 businesses use. It applies to any taxable item bought without Georgia sales tax, whether online, by catalog, or while traveling.
If You Sell Into Georgia From Out of State
Remote sellers must collect and remit Georgia sales tax once their sales exceed $100,000 in gross revenue or 200 separate transactions in the previous or current calendar year, regardless of physical presence.12Streamlined Sales Tax. Remote Seller State Guidance Marketplaces like Amazon, Etsy, and eBay have been required to collect and remit on behalf of their third-party sellers since April 2020. Sellers who only sell through a collecting marketplace generally don’t need their own Georgia registration for those sales, but if you also sell through your own site or at trade shows in Georgia, track your total exposure separately.