Georgia Sales Tax Guide (2026): Rates, Nexus, Registration & Filing

Is SaaS taxable?

No.

What is the sales tax rate in Georgia?

Georgia’s state sales and use tax rate is 4% — one of the lowest state rates — but local county and city taxes (LOST, SPLOST, ELOST, and others) bring combined rates to roughly 7%–9%. There are over 500 local taxing jurisdictions, so the rate depends on the buyer’s address.

Check the current combined rate using the Georgia Department of Revenue rate charts.

Do you have sales tax nexus in Georgia?

Nexus is the connection that obligates your business to collect and remit Georgia sales tax. You can establish it two ways — physically or economically. Either one is enough.

Physical nexus

You have physical nexus if you have a tangible presence in Georgia, such as:

• An office, warehouse, or other work site in the state
• Inventory stored in Georgia (including 3PL or Amazon-FBA stock)
• Employees or representatives physically present in the state
• Owning, renting, or operating income-producing property in Georgia
• Selling through a Georgia-dealer affiliate, or importing/manufacturing for sale in Georgia
• Click-through: paying commissions to a Georgia resident who refers customers, if those sales exceed $50,000 in 12 months

Economic nexus

Out-of-state sellers establish economic nexus once gross retail revenue exceeds $100,000 or 200 separate transactions in the current or previous calendar year (Georgia lowered the dollar threshold from $250,000 to $100,000 effective January 1, 2020). Either one triggers a collection obligation.

Marketplace facilitators collect and remit on the sales they facilitate, and those marketplace sales are excluded from a remote seller’s own threshold — but your direct (e.g., website) sales always count.

What is taxable in Georgia?

Tangible personal property is generally taxable; key exemptions include groceries, prescription medicine and medical devices, and certain R&D and manufacturing inputs. Most services are not taxable (only a few enumerated ones are). Shipping connected to a taxable sale is taxable.

New since January 1, 2024 (SB 56): Georgia now taxes specified digital products — downloaded or streamed e-books, music, video, and similar goods where the buyer gets a right to use them. Prewritten (“canned”) software is taxable whether downloaded or on media; SaaS and custom software remain exempt.

Is SaaS taxable in Georgia?

No. Georgia does not tax SaaS or custom-developed software. Note, though, that prewritten software (downloaded or on physical media) is taxable, and as of January 1, 2024 most other digital products — downloads and streaming — are taxable too.

How is food taxed in Georgia?

Groceries (unprepared food and food ingredients) are exempt from the 4% state tax, but local sales taxes still apply to groceries in most jurisdictions — a common compliance trap. Prepared food, alcohol, and tobacco are taxed at the full combined rate.

How to register for a Georgia sales tax permit

Register for a sales and use tax number through the Georgia Tax Center (GTC) — there’s no fee, and you typically receive your account number by email within about 15 minutes. Taxually can also handle registration for you.

Have ready: business history (including prior state IDs), entity type, basic business and ownership details, business-activity information, withholding details, and partner identification.

How to collect sales tax in Georgia

Georgia is destination-based — collect the combined state-plus-local rate for the buyer’s Georgia address, whether you’re in-state or remote.

Filing and paying Georgia sales tax

New accounts file monthly for the first six months; after that the DOR may assign quarterly (if your liability averages $200/month or less) or annual filing. Returns are due the 20th of the month following the period (next business day if a weekend or holiday). You must file and pay electronically if you owe more than $500, and businesses with more than $60,000 in prior-year liability must remit a 50% estimated prepayment.

File online through the GTC or by mail using Form ST-3. Georgia gives a vendor’s compensation discount for on-time filing: 3% of the first $3,000 of tax plus 0.5% of the remainder. Taxually’s software automates the full process.

Penalties for late or non-compliant filing

Failing to file or pay on time triggers these penalties:

• Late filing/payment: 5% of the tax per month, up to 25%.
• Interest accrues monthly at the annual rate set by the Department (recently about 9%).
• A 50% penalty applies to fraudulent returns.