Georgia Sales Tax on Invoices: A Practical Guide
Last verified: · Verify with the Georgia Department of Revenue before relying on a specific rate.
Georgia has one of the lower state base sales tax rates in the nation (4%) but heavy county-level additions that produce combined rates of 6% to 9%. Like California and Florida, Georgia exempts SaaS and most professional services, making it relatively friendly for digital and service-based businesses. This guide covers what small businesses and out-of-state sellers need to know.
The headline rate
Georgia's state sales tax is 4.0%. Counties layer their own additions through several special-purpose sales taxes:
- LOST (Local Option Sales Tax) — 1%, in most counties
- SPLOST (Special-Purpose Local Option Sales Tax) — 1%, county-by-county for capital projects
- ESPLOST (Educational SPLOST) — 1%, for schools
- TSPLOST (Transportation SPLOST) — 1%, in some metro Atlanta counties
Combined rates therefore range from 6% to 9%depending on county. Most metro Atlanta counties sit at 7%-8.9%. Use the Georgia DOR's rate chart for current combined rates by county.
Do you need to register?
Georgia-based businesses selling taxable goods or services must register for a Georgia Sales and Use Tax Number before making taxable sales.
Out-of-state sellers must register and collect Georgia sales tax once they have $100,000 in Georgia sales OR 200 separate transactionsin the previous calendar year. The "OR" test triggers nexus on either threshold.
What's taxable, what isn't
Georgia taxes tangible personal property and a narrow list of services. Notable for invoicing:
- SaaS, cloud computing, downloaded software: NOT taxed. Same as California and Florida.
- Most professional services: NOT taxed. Accounting, legal, consulting, design, photography services, freelance work — all exempt.
- Telecommunications and hotel occupancy: taxable.
- Tangible personal property: taxable at combined county-destination rate.
Frequently asked questions
What is Georgia's state sales tax rate?
Georgia's state sales tax rate is 4.0% — among the lower state base rates nationally. Counties levy additional sales taxes (typically 1% to 5% county-level rates including LOST, SPLOST, ESPLOST, and TSPLOST), making combined rates range from 6% to 9% depending on county. The Atlanta metropolitan area has combined rates of 7% to 8.9% across counties; rural areas often sit at 7%. Georgia Department of Revenue publishes the current combined rate by county at dor.georgia.gov.
What's Georgia's economic nexus threshold?
Georgia requires out-of-state sellers to register and collect Georgia sales tax once they have $100,000 or more in Georgia sales OR 200 or more separate transactions in the previous calendar year. The 'OR' test means either threshold triggers nexus. Once registered, the seller collects at the customer's destination-county combined rate (Georgia is a destination-sourcing state for sales tax purposes). Marketplace facilitators above the threshold collect on third-party sellers' behalf.
Is SaaS taxable in Georgia?
No. Georgia does not tax SaaS, cloud computing, or remotely-accessed software. Custom software developed for a single customer is also not taxable. Tangible delivery of software (DVDs, USB drives) IS taxable as tangible personal property. Georgia's SaaS-friendly position aligns with California, Florida, and Illinois — the four largest non-SaaS-tax states by GDP. This treatment is governed by Georgia DOR Letter Ruling LR SUT-2020-04 and prior guidance.
Does Georgia tax services?
Generally no. Georgia exempts most professional and personal services — accounting, legal, consulting, design, freelance work, photography services, etc. are not taxed. Specifically taxable services in Georgia include: telecommunications, hotel occupancy (separate hotel tax also applies), and a few others. Georgia is one of the more service-friendly states for sales tax purposes.
How do I claim a Georgia resale exemption?
B2B sales to Georgia-registered resellers can be exempt with a valid Georgia Sales Tax Certificate of Exemption (form ST-5) on file. The seller retains the certificate and applies zero tax on qualifying sales. The invoice should reference the buyer's Georgia Sales and Use Tax Number and note 'Sale for resale; ST-5 on file.' Georgia also accepts the multistate Streamlined Sales Tax (SST) Exemption Certificate for sellers registered under SST.
Where can I verify Georgia sales tax rates and rules?
Georgia Department of Revenue at dor.georgia.gov — the official tax authority. Look for: the Georgia Tax Center for online filing and rate lookup, current sales tax rate charts updated monthly, Form ST-5 (resale certificate), and DOR Letter Rulings for transaction-specific guidance. The Georgia Tax Center handles both registration and ongoing filings.
Sources
- Georgia Department of Revenue (dor.georgia.gov)
- Georgia DOR — Sales Tax Rates (current and historical)
This page is general information, not tax advice. For specific transactions, consult a Georgia-licensed CPA or request a Letter Ruling from the Georgia DOR.