State of Georgia Sales Tax Information

The state of Georgia collects sales tax. There is a flat rate for the state itself, and each county may collect an additional percentage.

History

In 1929, Georgia became the second state in the union to pass sales tax legislation. In 1989, the state tax rate increased from 3 percent to 4 percent. Counties may impose an additional sales tax of up to 3 percent.

Current Sales Tax Rates

The base Georgia sales tax rate remains 4 percent in 2010. In addition to the additional county-imposed tax, the city of Atlanta has a 1 percent sales tax. Sales tax is imposed on tangible personal property, not real property.

Tax Exemptions

Staple groceries are exempt from the 4 percent sales tax in Georgia, but they are subject to county sales tax. Also exempt are items bought with food stamps, prescription drugs, prescribed oxygen, hearing aids, eyeglasses and contact lenses. A complete list of sales tax exemptions is available on the Georgia Department of Revenue website.

Tax Collection

Retailers report Georgia sales tax information on form ST-3. Payment is made by check or money order.

You should know...

If you live in Georgia and buy tangible personal property over the phone, by mailor on the Internet, you must pay Georgia sales tax on it using Form ST-3USE. It does not matter where the seller is located.

References

• American Tax Token Society
• Georgia Department of Revenue - Sales and Use Tax Historical Rate Chart
• Georgia Sales Tax Rates Effective January 1, 2010
• Georgia Sales and Use Tax Exemptions

Resources

• Georgia Department of Revenue