Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Georgia, sales tax is a combination of the state's base rate and any local sales taxes that may apply. As of my knowledge cutoff in 2023, the base state sales tax rate in Georgia is 4%. However, local jurisdictions, including counties and cities, can impose additional sales taxes. These local taxes can vary significantly across different areas, leading to a total sales tax rate that may range from 4% to 8% or more, depending on the specific location within the state. The sales tax is generally applied to the sale of tangible personal property and certain services. Businesses selling goods or services in Georgia are typically required to collect the appropriate sales tax from customers at the point of sale and remit it to the Georgia Department of Revenue. Certain items may be exempt from sales tax, such as prescription medications and some grocery items. It's important for businesses to stay informed about the specific sales tax rates and regulations that apply to their operations within Georgia.