The sales tax in Georgia starts at a 4% state rate, but every county adds its own local taxes on top, so what you actually pay at the register runs between 6% and 9% depending on where you shop.1Justia Law. Georgia Code 48-8-30 – Imposition, Rate, and Collection of Tax A few categories follow different rules: groceries, prescriptions, and cars each get their own treatment.
The 4% State Rate
Georgia imposes a flat 4% sales tax on taxable retail sales of physical goods anywhere in the state.1Justia Law. Georgia Code 48-8-30 – Imposition, Rate, and Collection of Tax The rate is the same in Atlanta, Savannah, or a rural county seat. Sellers collect it at the register and remit it to the Georgia Department of Revenue. That 4% is just the floor.
Local Taxes That Push the Rate Higher
Every Georgia county layers additional sales taxes on top of the state’s 4%. These are voter-approved, and the mix varies county to county, which is why the total at checkout isn’t the same across the state. The common local pieces are:
- Local Option Sales Tax (LOST), a 1% tax shared between the county and its municipalities, authorized under O.C.G.A. § 48-8-82.2Justia Law. Georgia Code 48-8-82 – Authorization of Counties and Municipalities to Impose Joint Sales and Use Tax
- Special Purpose Local Option Sales Tax (SPLOST), a 1% tax dedicated to capital projects like roads, parks, or public buildings, authorized under O.C.G.A. § 48-8-110.3Justia Law. Georgia Code 48-8-110 – Definitions
- Educational SPLOST (E-SPLOST), a 1% tax funding school construction and capital improvements.
- Transit taxes, which in certain metro Atlanta counties add 1% for public transit systems like MARTA.
Stack a few of these and the total rate at the register lands somewhere between 6% and 9%. For a large purchase, it’s worth checking the combined rate in the specific county you’re buying in. Crossing a county line can mean a noticeably different total.
What’s Taxed
Georgia’s sales tax applies to most physical goods — electronics, furniture, clothing, appliances, and similar retail products. Leasing or renting equipment triggers the same tax as buying it outright.1Justia Law. Georgia Code 48-8-30 – Imposition, Rate, and Collection of Tax
Most services are not taxed, with notable exceptions. Hotel and lodging charges carry sales tax, and so do charges for transporting passengers. Online purchases follow the same rules as in-store ones: if the item would be taxable at a physical store, it’s taxable when bought online.
What’s Exempt
Several categories are exempt from the 4% state sales tax, though some still face local taxes at the county level.
- Food purchased for home consumption is exempt from the 4% state tax. Most counties still apply their local sales taxes to groceries, so you’ll typically pay between 2% and 5% on a grocery bill depending on the county.4Justia Law. Georgia Code 48-8-3 – Exemptions
- Prescription drugs and insulin are fully exempt from both state and local sales taxes.4Justia Law. Georgia Code 48-8-3 – Exemptions
- Durable medical equipment and prosthetics — oxygen supplies, wheelchairs, prosthetic devices — are exempt when sold with a prescription.4Justia Law. Georgia Code 48-8-3 – Exemptions
- Prescription eyeglasses and contact lenses are exempt when dispensed with a prescription.4Justia Law. Georgia Code 48-8-3 – Exemptions
- Manufacturing machinery used directly in production, and certain agricultural equipment, qualify for exemption.4Justia Law. Georgia Code 48-8-3 – Exemptions
The grocery rule is the one that catches most people out. You won’t see the state’s 4% on your food receipt, but your county’s local rate still applies, so groceries are not truly tax-free in most of Georgia.
Cars Are Different: TAVT Instead of Sales Tax
Georgia does not charge its standard sales tax on motor vehicles. Instead, you pay a one-time Title Ad Valorem Tax (TAVT) of 7% of the vehicle’s fair market value when you title it.5Department of Revenue. Title Ad Valorem Tax (TAVT) TAVT replaced both the old sales tax on vehicles and the annual motor vehicle property tax. You pay it every time a vehicle changes ownership, and new Georgia residents pay it when they register a vehicle for the first time.
Because TAVT is based on fair market value rather than purchase price, buying a used car from a private seller for below market value won’t necessarily lower the tax. The Department of Revenue uses its own valuation to calculate what you owe.
Buying from Out-of-State Sellers
When you buy something from an out-of-state seller who doesn’t collect Georgia sales tax, you owe use tax on that purchase at the same 4% state rate plus your county’s local rate.1Justia Law. Georgia Code 48-8-30 – Imposition, Rate, and Collection of Tax Use tax exists so people can’t avoid sales tax simply by buying across state lines.
If you’re not a registered dealer, you report use tax on the Consumer’s Use Tax Return, Form ST-3, listing untaxed purchases.6Department of Revenue. Consumer’s Use Tax Return You can subtract any sales tax you already paid to another state on the same item. In practice, most major online retailers now collect Georgia sales tax at checkout, so use tax mainly comes up on purchases from smaller out-of-state sellers or private party transactions.