Georgia Sales Tax Guide

Georgia General Sales Tax Information:

Sales Tax Registration Information for Georgia

Businesses that have a physical presence in Georgia must register for a sales tax permit with the Georgia Department of Revenue (GADOR). Additionally, sellers that do not have a physical presence but meet the economic nexus threshold of $100,000 or 200 transactions in the previous or current calendar year must collect and remit sales tax. Businesses must register for a sales tax permit upon crossing the economic nexus threshold.

• What's Each State's Economic Nexus Thresholds for Sales Tax?
• Do You Need to Get a Sales Tax Permit in Georgia?
• How to Register for a Sales Tax Permit in Georgia?

Businesses can register for a sales and use tax permit online through the Georgia Tax Center portal. The registration process requires basic business information that can be found here.  Upon completion of the registration, the tax account number will be delivered within 15 minutes by email. 

• How to File and Pay Sales Tax in Georgia?
  

What Products are Subject to Sales Tax in Georgia?

Per the GADOR website, sales and use tax is generally applied to all sales of tangible personal property, digital goods, and select services.  

Is Clothing Taxable in Georgia?

Clothing is generally taxable in Georgia as it is considered tangible personal property per the GADOR website. There are currently no clothing exemptions or sales tax holidays where clothing is considered exempt.

Is CBD Taxable in Georgia?

CBD is generally taxable in Georgia as it is considered tangible personal property by the GADOR. CBD is generally legal to buy, sell, and possess as long as the THC concentration does not exceed 0.3% THC on a dry weight basis per House Bill 213.

• CBD Sales Tax State-by-State Guide: Which States Require Sales Tax on Cannabidiol (CBD)?

Are Dietary Supplements Taxable in Georgia?

Dietary supplements are generally taxable in Georgia. Per the O.C.G.A. § 48-8-3(57) food and food ingredients exemption, dietary supplements are not considered food or food ingredients and are therefore taxable.

Are Digital Products Taxable in Georgia?

Specified digital products, digital goods, and digital codes are taxable in Georgia effective January 1, 2024. Act 236 (S.B. 56) provides detailed information about the digital goods that are considered taxable.

Are Diapers Taxable in Georgia?

Diapers are generally taxable in Georgia as they are considered tangible personal property. Diapers are considered clothing by the GADOR which were considered exempt during Georgia Sales Tax Holidays per Rule 560-12-2-.110. However, Sales Tax Holidays have not been approved in the state of Georgia since 2015. 

Are Feminine Hygiene Products Taxable in Georgia?
Feminine hygiene products are generally taxable in Georgia. However, House Bill 123 has been proposed to exempt menstrual products from sales tax. This Bill has not yet been enacted and will likely be reassessed in 2025.

Is Food Taxable in Georgia?

Food and food ingredients are generally exempt from sales tax in Georgia effective January 1, 2011 per GADOR Rule 560-12-2-.104. The ruling states that food and food ingredients means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. Please refer to the ruling for additional information

Are Leases and Rentals Taxable in Georgia?

Leases and rentals of tangible personal property are generally taxable in Georgia unless a specific exemption applies per Georgia Code 48-8-2(8).

• Which States Charge Sales Tax on Rentals and Leases?

Is SaaS Taxable in Georgia?

The taxability of SaaS varies in Georgia. There are two important factors to consider when determining the taxability of SaaS such as the form in which it is delivered and whether it is prewritten or canned. Generally, prewritten software is taxable when sold in a tangible medium whereas custom computer software is exempt when delivered in a tangible form as this is considered part of the taxable service. Typically, both prewritten and custom software are considered exempt when sold in an intangible form. For more specific details and definitions, refer to Rule 560-12-2-.111. Computer Software and Computer - Related Services.

Are Services Taxable in Georgia?
Services are generally exempt from tax in Georgia unless they are specifically taxable per the GADOR website. Some examples of taxable services include accommodations, in-state transportation of individuals, and admissions. 

Are Shipping & Handling Charges Taxable in Georgia?

Shipping and handling charges generally follow the taxability of the item in Georgia. Per the GADOR website, “charges made for delivery, transportation, freight, or shipping and handling are part of the sales price and subject to sales tax in the same manner as the underlying sale”. See additional information in Rule 560-12-2-.45. Freight, Delivery and Transportation. 

Are Medical Products Taxable in Georgia?

Certain drugs, durable medical equipment, prosthetic devices, and other medical items are exempt from sales tax in Georgia per Rule 560-12-2-.30. Most medical items that require a prescription are exempt from sales tax.

Sales Tax Audit Risk in Georgia

What Are the Chances of an Audit in Georgia for Sales Tax?

The GADOR does not provide the statistics on sales tax audits. However, the GA DOR Business Tax Audits website indicates that audits are selected from “reviewing tax returns and credits, deductions, etc to determine if the correct amounts reported”.

What Are the Penalties of Not Paying Sales Tax in Georgia?

Failing to file and remit sales tax can result in various civil and/or criminal consequences. The GADOR Penalty and Interest Rates website outlines the penalties and interest for failing to file, failing to pay, and for filing false or fraudulent returns. Criminal penalties can result in fines and a jail sentence depending on the severity of the offense. 

• What Are the Penalties for Not Paying Sales Tax?

Additional Sales Tax News in California

• H.B. 170: Understanding the Proposed Digital Tax in Georgia