Georgia Sales Tax Overview: Key Points for Businesses and Individuals

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GEORGIA SALES TAX OVERVIEW
Key Points for Businesses and Individuals
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OUR
COMPANY
Kintsugi automates sales tax compliance for SaaS
companies, streamlining tax processes with
AI-driven solutions. It integrates seamlessly
with your tech stack, ensuring accurate tax
calculations, real-time nexus monitoring, and
automatic filings. Kintsugi allows SaaS
businesses to scale effortlessly, stay compliant,
and focus on growth without tax-related worried.
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GEORGIA
SALES TAX OVERVIEW

• State Base Sales Tax Rate The state sales tax
  rate in Georgia is 4.
• Local Sales Taxes However, local county and city
  taxes can make the total tax rate higher.
• Total Sales Tax Rate In some areas, local taxes
  can increase the total sales tax rate to 8.
• Why It Matters Its important for shoppers to
  know their area's total tax rate and for
  businesses to apply the right tax rate.

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LOCAL
SALES TAX VARIATIONS
Sales tax in Georgia can vary by location. For
example

• Atlanta, DeKalb, and Fulton Counties Local taxes
  can reach 8, combining the city, county, and
  metro taxes.
• Cherokee and Habersham Counties Some areas have
  a lower rate of 6.
• Districts Certain districts, like the Atlanta
  Metro District, can see taxes as high as 8.9.

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SALES TAX
RATE IN MAJOR CITIES
Here's a quick look at the tax rates in key
Georgia cities for 2024

• Atlanta Total rate 8
• Savannah Total rate 7
• Augusta Total rate 7
• Columbus Total rate 7
• Smaller cities or unincorporated areas usually
  have tax rates between 6 and 7.

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HOW TO CALCULATE GEORGIA SALES TAX

• Determine Taxable Amount Calculate the total
  sale amount before tax.
• Identify State Sales Tax Rate Always start with
  the 4 state rate.
• Add Local Tax Rates Local taxes can range from
  2 to 4 depending on the location.
• Combine Rates Add the local rate to the state
  rate.
• Example 100 sale with 7 tax 7 sales tax.
• Special Considerations Online sales and SaaS
  services follow the same rules but must consider
  the buyer's location.

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SPECIAL CONSIDERATIONS FOR E-COMMERCE AND SAAS
SaaS Software as a Service is subject to Georgia
sales tax. Remember to include both state and
local taxes in the total rate.
E-Commerce For online transactions, the seller
must apply the correct tax rate based on the
buyers location.
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SERVICES AND EXEMPTIONS
Services Most services are exempt from Georgia
sales tax, except for services like hotel stays
or car rentals.
Exemptions Be aware of items like prescription
drugs and certain agricultural equipment that are
exempt from the state portion of sales tax.
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USE TAX IN GEORGIA
What about purchases made outside Georgia?

• Use Tax This tax applies when you purchase goods
  out-of-state and bring them into Georgia without
  paying sales tax.
• The rate is the same as the state sales tax4,
  plus any local tax.
• Example If you buy furniture online from another
  state and the seller didnt charge Georgia tax,
  you owe the use tax when you report your taxes.

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RECENT CHANGES TO GEORGIA SALES TAX (2024)

• Sales Tax Increase As of January 1, 2024,
  Georgia's state sales tax rose from 4 to 4.5 to
  fund infrastructure projects.
• Expanded Taxable Goods Digital goods like
  e-books and streaming services are now taxable.
• Local Sales Tax Changes Some counties, like
  Fulton, raised their local tax rates to fund
  public projects.
• Marketplace Facilitators New rules for online
  sellers with 100,000 in revenue or 200
  transactions require them to collect sales tax.

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EXCISE TAXES IN GEORGIA
Georgia also imposes special excise taxes,
including

• Alcohol
• Beer 0.48 per gallon
• Wine 1.51 - 2.54 per gallon
• Spirits 3.79 per gallon

• Tobacco
• Cigarettes 0.37 per pack of 20

• Motor Fuel
• Gasoline 0.29 per gallon
• Diesel 0.32 per gallon

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DISCRETIONARY
TAXES IN GEORGIA
In addition to state sales tax, there are local
option taxes that counties may implement

• LOST (Local Option Sales Tax) 1 for general
  local services.
• SPLOST (Special Purpose Local Option Sales Tax)
  For specific capital projects.
• ESPLOST (Education SPLOST) For funding schools
  and educational facilities.

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UNDERSTANDING
NEXUS IN GEORGIA
Nexus means a business must collect sales tax if
it has a physical or economic presence in Georgia.

• Physical Nexus If a business has an office,
  inventory, or employees in Georgia, it must
  collect sales tax.
• Economic Nexus If a business exceeds 100,000 in
  sales or 200 transactions in Georgia, it must
  collect sales tax even without a physical
  presence.

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KEY CONSIDERATIONS FOR 2024

• Stay informed about local tax referendums that
  may introduce new or renewed taxes.
• Businesses must stay compliant with both state
  and local tax rules.
• Watch for new tax laws that could impact rates or
  exemptions.
• Understand nexus rules, especially if you're a
  remote seller.

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