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Explore Georgia's sales tax in a simple, clear format! This guide covers essential information on rates, rules, and compliance tips for 2024. Whether you're a business owner or a curious consumer, stay informed on the latest tax regulations in the Peach State.

Transcript

1. GEORGIA SALES TAX GEORGIA SALES TAX OVERVIEW OVERVIEW Key Points for Businesses and Individuals
2. ABOUT 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.
3. 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: It’s important for shoppers to know their area's total tax rate and for businesses to apply the right tax rate.
4. 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%.
5. 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%.
6. 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.
7. SPECIAL CONSIDERATIONS FOR E- COMMERCE AND SAAS E-Commerce: For online transactions, the seller must apply the correct tax rate based on the buyer’s location. SaaS: Software as a Service is subject to Georgia sales tax. Remember to include both state and local taxes in the total rate.
8. 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.
9. 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 tax— 4%, plus any local tax. Example: If you buy furniture online from another state and the seller didn’t charge Georgia tax, you owe the use tax when you report your taxes.
10. 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.
11. 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
12. DISCRETIONARY TAXES IN GEORGIA 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. In addition to state sales tax, there are local option taxes that counties may implement:
13. 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.
14. 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. KEY CONSIDERATIONS FOR 2024
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