Georgia sales tax is 4% and a maximum local sales tax of 5%. Its tax code ranks 32nd on the State Business Tax Climate Index. Beginning on January 1, 2024, the state will impose a new tax on digital products and services. The new tax will apply to specified digital products, other digital goods, and digital codes that are sold to an end user in Georgia or delivered into the state and cannot be redeemed or exchanged for cash or credit. Companies that sell these types of items in Georgia should evaluate the impact of this change and speak with a tax specialist.
Several bills were passed in the 2024 legislative session, including legislation to expand the state’s sales and use tax exemptions for data centers. However, Gov. Kemp vetoed a bill that would have suspended the new sales tax on data center equipment.
Georgia Business Registration
The state of Georgia is a member of the Streamlined Sales Tax program and requires businesses that sell products or services in the state to collect and remit local and state sales taxes. Businesses that have established economic nexus in the state can register online using the Georgia Tax Center. The website will guide you through the Georgia Business Registration process and assign a filing frequency based on your expected sales volume.
Georgia Sales Tax Exemptions
Most goods and services are taxable in Georgia, but there are a few notable exemptions including some groceries, prescription medications, and certain medical devices. Additionally, shipping charges are taxable if they are part of the sale of taxable goods.
Georgia Sales Tax Due Dates
Returns and payments for the previous month’s transactions are due by the 20th of each month. Returns may be filed paper or electronically; late penalties can apply for failure to file or pay on time. To avoid penalties, keep accurate and complete sales tax records. If you’re a large business with a high volume, consider signing up for auto-filing with Georgia via TaxJar.