State of Georgia Flag

Georgia Sales Tax Guide for Businesses

Sales Tax Rate
4.0%
Local Taxes
Yes
Website
Department of Revenue
Tax Line
877-423-6711

We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Georgia, and if so, how best to tackle the sales tax situation in the Peach State.

After reading this, you’ll know:

  • Do you or don’t you need to collect Georgia sales tax?
  • Which customers do you collect from?
  • How much do you collect?
  • What do you do with all the sales tax you’ve collected?
  • Way more than you probably ever wanted to know about Georgia sales tax!

Do you have sales tax nexus in Georgia?

Good news! You only have to begin thinking about Georgia sales tax if you have sales tax nexus in Georgia.

“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

Georgia considers a seller to have sales tax nexus in the state 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
  • Independent contractors or other representatives in Georgia

You can click here to read exactly what the Georgia Department of Revenue (Georgia’s taxing authority) has to say about what constitutes sales tax nexus in Georgia.

Do you have sales tax nexus in Georgia if you sell on FBA?

If you sell on Amazon FBA, you may have sales tax nexus in Georgia. Storing physical products in a state can create sales tax nexus, and Georgia is home to at least one Amazon Fulfillment Center.

To determine whether or not you have items stored in an FBA warehouse in Georgia, you can do one of two things:

  1. Login to Amazon Seller Central and pull your inventory report
  2. Sign up for a 30-day free trial of TaxJar and find out from where your Amazon inventory ships with our Amazon badge feature

You may find that your inventory is stored in one or both of Georgia’s Amazon fulfillment centers in this list:

Warehouse Code Address County Tax Rate
ATL7 6855 Shannon Pkwy, Union City, GA 30291-2091 Fulton 7%
MGE1 650 Broadway Ave, Braselton, GA 30517-3002 Jackson 7%

Read here for more about Amazon FBA and sales tax nexus. And here’s a list of all the Amazon Fulfillment Centers in the U.S.

Is what you’re selling even taxable?

You’ve probably read this far because you realized you have sales tax nexus in Georgia. Your next step is to determine if what you’re selling is even taxable.

Services in Georgia are generally not taxable. So if you’re a graphic designer or a plumber, you’re in luck and you don’t have to worry about sales tax.

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.

So if you sell toys, then charge sales tax to your Georgia customers.

But if you’re a graphic designer, don’t charge sales tax to your Georgia customers.

If you have sales tax nexus in Georgia and your products are taxable, your next step is to register for a sales tax permit.

How to Register for a Sales Tax Permit in Georgia

Sellers with sales tax nexus in Georgia must apply for a Georgia sales tax permit.

Don’t skip this step! Georgia considers it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Georgia.

How to Collect Sales Tax in Georgia

So you’ve determined that you have sales tax nexus in Georgia and what you’re selling is taxable. And you’re all set and registered for your Georgia sales tax permit(s).

The next step is to determine how much sales tax to collect.

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 an 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.

Example: You live and work in Woodstock, Georgia 30188 where the tax rate is 6%, but you ship to your customer in Atlanta with a zip code of 30303. Their tax rate in the 30303 zip code is 8%, so you would charge your customer the 8% tax rate.

You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator or by going to TaxJar.com/mobile on your mobile device.

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.

Example: You live in Chattanooga, Tennessee 37401 where the tax rate is 9.25%, but your customer lives in Rome, Georgia 30161 and their tax rate is 7%. You would charge the customer the 7% tax rate.

Remember, only sellers who have sales tax nexus in Georgia need to charge sales tax to buyers in Georgia.

What are the Amazon Sales Tax Settings for Georgia?

If you are an Amazon pro seller and use Amazon to collect sales tax, be sure you have your Georgia sales tax settings entered correctly. Find step-by-step instructions for setting up your Amazon sales tax settings here.

If you are a… State tax County tax City tax District tax Custom Rate Is shipping taxable? Is gift wrapping taxable?
Seller living in Georgia X X X X N/A Yes No
Selling living outside of Georgia X X X X N/A Yes No

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.

Read a full explanation of sales tax on shipping in Georgia here.

Rank City Population County Total SalesTax
1 Atlanta 463,878 Fulton 8.900%
2 Columbus 200,579 Muscogee 8.000%
3 Augusta 197,182 Richmond 8.000%
4 Macon 153,515 Bibb 7.000%
5 Savannah 145,674 Chatham 7.000%
6 Athens 122,604 Clarke 7.000%
7 Sandy Springs 105,330 Dekalb 7.000%
8 Roswell 94,501 Cobb 6.000%
9 Johns Creek 83,335 Fulton 7.000%
10 Albany 74,843 Dougherty 7.000%
11 Warner Robins 73,490 Houston 7.000%
12 Alpharetta 63,693 Cherokee 6.000%
13 Marietta 59,067 Cobb 6.000%
14 Smyrna 56,146 Cobb 6.000%
15 Valdosta 55,724 Lowndes 7.000%
16 Brookhaven 51,910 Dekalb 7.000%
17 Dunwoody 48,733 Dekalb 7.000%
18 Peachtree Corners 40,978 Gwinnett 6.000%
19 Mableton 39,589 Cobb 6.000%
20 Gainesville 38,712 Hall 7.000%

Caption: Georgia’s 20 Most Populous Cities and their Sales Tax Rates (June 2017)

When are Georgia Sales Tax 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.

2017 Georgia Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
*January February 21, 2017*
February March 20, 2017
March April 20, 2017
*April May 22, 2017*
May June 20, 2017
June July 20, 2017
*July August 21, 2017*
August September 20, 2017
September October 20, 2017
October November 20, 2017
November December 20, 2017
* December January 22, 2018*

*indicates a due date pushed back due to a weekend or holiday

2017 Georgia Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q1 (Jan - Mar) April 20, 2017
Q2 (Apr-Jun) July 20, 2017
Q3 (Jul-Sep) October 20, 2017
*Q4 (Oct-Dec) January 22, 2018*

2017 Georgia Annual Sales Tax Filing Due Dates

Taxable Period Due Date
*Year 2017 January 22, 2018*

Click here for a chart of Georgia sales tax filing due dates in 2017.

How to File Sales Tax in Georgia

When it comes time to file sales tax in Georgia you must do three things:

  1. Calculate how much sales tax you owe
  2. File a sales tax return
  3. Make a payment

We’ll walk you through these steps.

How to Calculate How Much Sales Tax You Owe in Georgia

Calculating how much sales tax you should remit to the state of Georgia is easy with TaxJar’s Georgia state sales tax report.

All you do is connect the channels through which you sell - including Amazon, eBay, Shopify, Square and more - and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Georgia sales tax return will be waiting for you in TaxJar. All you have to do is login!

How to File and Pay Sales Tax in Georgia

You have three options for filing and paying your Georgia sales tax:

Other Facts You Should Know about Georgia Sales Tax Filing

There are a few more things you should know about sales tax in Georgia:

Penalties:

  • Late Filing Penalty: 5% of the tax due or $5, whichever is greater, for each tax type on the delinquent return for each month or fraction that the return is delinquent up to 25% or $25, whichever is greater.
  • Late Payment Penalty: Interest: 1% per month or fractional part on any unpaid tax from the due date until paid in full.

Note: Sales tax returns in Georgia are considered timely filed if postmarked by the 20th of the month following the close of the reporting period. All returns filed after that date are subject to penalty.

Discounts:

Many states understand that collecting sales tax is a difficult burden on merchants, and will provide a discount to help alleviate some of this burden. In Georgia, entities paying sales tax on time can claim a discount of 3% of the first $3,000 dollars of tax due and then 0.5% of the excess amount.

Georgia Sales Tax Holidays

Georgia currently has no sales tax holidays scheduled for 2017.

Check here for more information about 2017 sales tax holidays including how to handle sales tax holidays as an online seller.

And that’s it. You’ve mastered Georgia sales tax filing! Now that sales tax is out of the way, you can get back to what you do best - running your business.

Georgia Sales Tax Resources

For more about Georgia sales tax, check out the Georgia section of the TaxJar blog.

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