The Dunwoody sales tax is 8%, split evenly between Georgia’s 4% state rate and 4% in local DeKalb County levies. That full 8% applies to most retail purchases of physical goods, with groceries and prescription medications following different rules. Both halves are collected together at the register and remitted as a single payment to the Georgia Department of Revenue, which distributes the local share back to the appropriate agencies.
Where the Local 4% Goes
DeKalb County’s 4% is actually four separate 1% taxes, each with its own purpose:
- Local Option Sales Tax (LOST). Shared between the county and its cities, including Dunwoody, funding general government operations under negotiated distribution percentages.
- MARTA tax. Funds the Metropolitan Atlanta Rapid Transit Authority’s bus and rail service throughout DeKalb County.
- SPLOST. A Special Purpose Local Option Sales Tax earmarked for capital projects like roads, public safety facilities, and parks. Each round requires voter approval through a referendum.
- E-HOST. An Equalized Homestead Option Sales Tax whose proceeds go entirely toward rolling back property taxes on homestead-exempt properties in the county.1City of Dunwoody. DeKalb EHOST
The E-HOST is the piece worth noticing if you own your home in Dunwoody. Every penny of that 1% goes back to property tax relief for homeowners with a homestead exemption, so a homeowner paying sales tax at the store is also a direct beneficiary of it.
What’s Taxable and What Isn’t
Everyday Goods
The full 8% applies to most retail purchases of physical goods: clothing, electronics, furniture, appliances, and similar items. Services are generally not taxable unless they involve installing or repairing tangible property.
Groceries
Food and food ingredients purchased for off-premises consumption are exempt from the 4% state portion but still carry the full 4% local rate.2Georgia Department of Revenue. Georgia Code of Regulations 560-12-2-.104 – Food Exemption A $100 grocery trip in Dunwoody includes $4 in sales tax rather than $8. Prepared food and restaurant meals don’t qualify for the state exemption and are taxed at the full 8%.
Medications and Medical Equipment
Prescription drugs dispensed by a pharmacist for human treatment are completely exempt from both state and local sales tax.3Justia Law. Georgia Code Title 48 Chapter 8 – Section 48-8-3 Exemptions The same applies to durable medical equipment sold under a prescription, insulin and insulin syringes, hearing aids, prescribed oxygen, and mobility equipment.4Georgia Department of Revenue. Georgia Code of Regulations 560-12-2-.30 – Drugs, Durable Medical Equipment Over-the-counter medications that don’t require a prescription are taxable.
Digital Products
Since January 1, 2024, Georgia taxes specified digital products sold to end users when the buyer receives permanent-use rights. That covers digital audiovisual works, audio files, e-books, artwork, photographs, periodicals, video games, and electronic entertainment. The key word is “permanent.” A file you download and keep is taxed at the full 8% like a physical product. Streaming subscriptions and cloud-based software where access depends on continued monthly payments fall into a different category and are generally not treated the same way.
Shipping Charges
Georgia treats delivery fees broadly. When a seller charges for shipping on taxable goods, that charge is taxable whether or not it’s listed separately on the invoice.5Georgia Department of Revenue. Georgia Code of Regulations 560-12-2-.45 – Freight, Delivery and Transportation Charges Georgia only exempts delivery when the seller acts as a true agent for the buyer, with a separate escrow account for shipping costs and other strict documentation. For shipments that mix taxable and exempt items, the seller can split the delivery charge proportionally by sales price or weight and tax only the taxable portion.
Buying from Out-of-State Sellers
Out-of-state businesses selling into Georgia must register and collect the 8% Dunwoody rate once they exceed $100,000 in gross revenue from Georgia sales or more than 200 separate transactions delivered into the state during the current or previous calendar year. Once either threshold is crossed, the seller collects based on where the buyer takes delivery.
Online marketplace platforms like Amazon, eBay, and Etsy have a separate obligation. Georgia’s marketplace facilitator law, effective since April 2020, puts the collection responsibility on the platform itself for sales it facilitates. If you sell through one of these marketplaces, the platform handles tax collection on those orders. Sales made through your own website, at trade shows, or from a physical location remain your responsibility.
When you buy something from an out-of-state seller who doesn’t collect Georgia tax, you owe use tax at the same 8% combined rate. This covers online purchases, catalog orders, and anything brought back from another state for use in Dunwoody. Businesses report use tax on the same return they use for sales tax. Individual consumers technically owe it too, though enforcement for personal purchases has historically focused on larger items like vehicles and equipment rather than everyday online orders.
Registering as a Dunwoody Seller
Before your first taxable sale, you need a Georgia sales tax registration through the Georgia Tax Center. The turnaround is quick: after you submit online, your tax account number typically arrives by email within about 15 minutes.6Georgia Department of Revenue. Sales and Use Tax Registration – FAQ You’ll need the Social Security numbers of all corporate officers or owners, your Federal Employer Identification Number, the legal business name, and the physical Dunwoody address.7Georgia Department of Revenue. Sign Up for Online Access with GTC
State sales tax registration is separate from a local business license. Dunwoody and DeKalb County each have their own occupational tax certificate requirements for businesses operating within their boundaries. One registration doesn’t cover the other.
If you buy inventory for resale, suppliers will accept a Georgia ST-5 Certificate of Exemption so you don’t pay sales tax on those purchases.8Georgia Department of Revenue. ST-5 Certificate of Exemption The exemption only applies to goods genuinely intended for resale, not items you plan to use in your business.
Filing Returns and Keeping the Dealer Discount
Sales tax returns are due by the 20th of the month following the reporting period.9Georgia Department of Revenue. File and Pay Most Dunwoody businesses file monthly, though the Department of Revenue may assign a quarterly or annual schedule to lower-volume sellers. Filing and payment happen electronically through the Georgia Tax Center.
Georgia lets you keep a small share of what you collect as compensation for timely remittance. The deduction is 3% of the first $3,000 in combined state and local tax due on each return, plus 0.5% of anything above that.10Justia Law. Georgia Code Title 48 Chapter 8 – Section 48-8-50 Compensation of Dealers On a $3,000 tax bill, that’s $90 you keep. On a $10,000 bill, it’s $90 plus $35 (0.5% of the $7,000 excess), totaling $125. The discount disappears entirely if your return is late or your payment is delinquent.
Late Filing Penalties
Missing the deadline triggers a penalty of 5% of the tax due (or $5, whichever is greater) for the first 30 days. Another 5% (or $5) is added for each additional 30-day period the return stays delinquent, up to a maximum of 25% of the unpaid tax.11Justia Law. Georgia Code Title 48 Chapter 8 – Section 48-8-66 Penalties for Failure to File Return Interest also accrues on the unpaid balance from the original due date.
If the late filing was caused by circumstances genuinely beyond your control, you can submit an affidavit explaining the situation with your return. If the Department of Revenue accepts the explanation and you pay within 10 days of the due date, it may waive the penalties and interest. Filing a fraudulent return or willfully failing to file at all carries a penalty of 50% of the tax due.