Georgia sales tax: rates, nexus & ST-3 filing
Georgia keeps state rate low (4%) but stacks three optional county taxes — LOST + SPLOST + E-LOST — plus Atlanta-area TSPLOST and MARTA, taking combined rates to 6% rural and up to 9% in metro Atlanta. SaaS is exempt, which is unusual for a state this size. The hardest part of Georgia compliance is tracking SPLOST sunsets — a 1% local rate can disappear quarterly when a referendum project ends.
The Georgia numbers at a glance
| Field | Value |
|---|---|
| Base state rate | 4.00% |
| County LOST | 1% — general county revenue |
| County SPLOST | 1% — project-specific, sunsets when funded |
| Education-LOST (E-LOST) | 1% — local school district capital |
| Atlanta-area extras | TSPLOST 0.4%, MARTA 0.5–1% (Fulton, DeKalb, Clayton) |
| Economic nexus threshold | $100,000 OR 200 transactions |
| SaaS taxable? | No — remote access requires no tangible transfer |
Three county taxes that stack: LOST, SPLOST, E-LOST
Georgia gives counties the option to layer up to three separate 1% sales taxes — voter-approved on independent referendum cycles:
- LOST (Local Option Sales Tax, 1%) — general county revenue. Most counties have this on permanently.
- SPLOST (Special-Purpose LOST, 1%) — funds a specific project: roads, courthouse, jails, parks. Sunsets automatically when the project's funding cap is hit (typically 5–6 years). Multiple SPLOSTs can run in sequence — when one expires, the county may ask voters to approve another.
- E-LOST (Education LOST, 1%) — local school district capital projects. Approved district-by-district, not county-by-county; large counties may have parts inside and parts outside an E-LOST district.
A county with all three has 3% local on top of the state 4% = 7% combined. Atlanta-area adds TSPLOST (0.4%) and MARTA (0.5–1%) for combined rates around 8.9% Fulton and 9% in some DeKalb zips.
Tracking SPLOST sunsets without a rate table maintenance nightmare
The hardest part of Georgia compliance is rate-table freshness. When a county SPLOST sunsets (the project is funded), the 1% drops off — often quarterly. Stale rate tables systematically over-collect, creating refund liabilities.
With Avalara AvaTax on Pro and above, the combined rate stays current as the Georgia DOR updates it. When the Bibb County SPLOST sunsets in June, the July invoice to a Macon customer drops from 8% to 7% automatically. When voters approve a new SPLOST in November, the December invoice goes back to 8%. No manual rate updates.
Georgia exempts SaaS — don't over-collect
Georgia's sales-tax framework requires transfer of tangible personal property. The DOR has consistently held that:
- SaaS and remotely-accessed prewritten software — exempt
- Downloaded electronic software (no physical media) — exempt
- Digital products: ebooks, music, video downloads — exempt
- Cloud storage and online services — exempt
- Custom software developed for a specific customer — exempt
Taxable software in Georgia is essentially software delivered on a physical medium — CDs, DVDs, USB drives. Almost nobody sells software that way anymore. SaaS companies billing Georgia customers should set the line to exempt. Over-collecting creates a refund liability under O.C.G.A. § 48-2-35.
How HelloBooks does this
HelloBooks handles every Georgia-specific quirk — the LOST + SPLOST + E-LOST stack with automatic sunset tracking, Atlanta TSPLOST/MARTA add-ons, SaaS exemption, marketplace deductions, and ST-3 filing by the 20th.
- 1
Register through the Georgia Tax Center
Apply for a Georgia Sales and Use Tax account via the GTC portal (free). You'll get an account number plus a filing-frequency assignment. Enter the account number and frequency into HelloBooks.
- 2
Connect your sales channels with GA flagged
Tag the customer's ship-to ZIP on every invoice. On Pro and above, HelloBooks computes the rate through Avalara AvaTax — state 4% + county LOST + SPLOST + E-LOST + Atlanta TSPLOST/MARTA where applicable, kept current as the Georgia DOR refreshes rates when SPLOSTs renew or sunset. On the Free Plan you apply manual per-state rates.
- 3
Skip tax on SaaS — Georgia exempts it
For SaaS, cloud subscriptions, and remotely-accessed software billed to Georgia customers, HelloBooks does NOT apply sales tax. Tag the product as SaaS / cloud delivery in the item master; HelloBooks marks GA customers as exempt for those lines.
- 4
Track SPLOST sunsets
Counties renew SPLOST on their own referendum cycles. With Avalara AvaTax on Pro and above, a sunsetting 1% SPLOST drops off your invoices automatically the period it expires — no manual rate-table maintenance.
- 5
File the ST-3 by the 20th
HelloBooks builds the ST-3 return draft from the period's tagged sales, with marketplace deductions and exempt-line exclusions. Monthly deadline is the 20th of the next month. E-file via Georgia Tax Center, mark paid in HelloBooks.
Keep Georgia books on the Free Plan
Registering for a Georgia sales tax permit is the first step; clean books are the second. HelloBooks Free keeps invoices, bills and your bank feed in one ledger at $0, so the figures you report come from records you can check.
- Unlimited invoices, bills and quotes
- Unlimited email payment reminders
- 1 live bank feed through Plaid, plus 2 manual bank or card accounts
- 2 users
- Free AI credits to get started (upgrade for more)
- AP/AR aging, P&L, balance sheet and cash flow reports
- iOS and Android app
Free includes 1 live bank feed, 2 users and free AI credits to get started. Data export, recurring invoices and multi-currency are on paid plans, and invoices sent from Free carry a small “Powered by HelloBooks” badge. Starter is $14.99/mo; Pro is $39.99/mo.
Frequently asked questions
What is the Georgia sales tax economic nexus threshold?
$100,000 in cumulative gross sales OR 200 separate transactions delivered into Georgia during the previous or current calendar year. The Georgia Department of Revenue adopted economic nexus in January 2019 following Wayfair. Once you cross either threshold, register through the Georgia Tax Center and begin collecting from the first sale of the next period.
What is the Georgia sales tax rate?
Georgia's state portion is 4.00% — one of the lower state rates in the US. Counties layer Local Option Sales Tax (LOST, typically 1%), Special-Purpose LOST (SPLOST, typically 1%), and Education-LOST (E-LOST, typically 1%) on top, plus an Atlanta TSPLOST (transportation, 0.4%) and MARTA (0.5–1%) where applicable. Combined rates run 6% in most of rural Georgia to 8.9% in Atlanta and 9% in some Fulton/DeKalb addresses.
Does Georgia tax SaaS and digital products?
Georgia does NOT tax SaaS or remotely-accessed software. Georgia requires a transfer of tangible personal property for sales tax to attach, and pure cloud delivery does not qualify. Downloaded prewritten software is also exempt as long as delivery is electronic (no physical media). Digital products (ebooks, music, video) are exempt. Georgia is one of the more SaaS-friendly Southeast states.
What is Georgia's destination-sourcing rule?
Georgia is a destination-sourcing state. The combined rate (state 4% + the destination county's LOST + SPLOST + E-LOST + applicable transit surcharges) is keyed to the buyer's ship-to address. The county stack is the main variable — Atlanta-area buyers have 1% LOST + 1% MOST + 0.4% TSPLOST + 1% MARTA which compounds. Outside metro Atlanta, the county stack is usually 1% LOST + 1% SPLOST + 1% E-LOST = 3% local.
What are LOST, SPLOST, and E-LOST in Georgia?
Three separate optional county-level sales taxes Georgia voters can approve: Local Option Sales Tax (LOST, 1% — general county revenue), Special-Purpose LOST (SPLOST, 1% — specific projects like roads, schools, public buildings; sunsets after the project is funded), and Education-LOST (E-LOST, 1% — local school district capital). A given county may have all three layered for 3% local on top of the state 4% = 7% combined. Each renews on its own voter referendum cycle, so rates can change quarterly.
How does the Georgia marketplace facilitator law work?
Georgia requires marketplace facilitators with $100,000+ in GA sales or 200+ GA transactions to collect and remit on behalf of third-party sellers. Amazon, Etsy, eBay, Walmart and Shopify Markets in Georgia are facilitators. Sellers still register and file Form ST-3, showing marketplace sales as deductions. The marketplace facilitator threshold matches the seller economic nexus threshold.
How often do Georgia sales tax returns get filed?
The DOR assigns frequency by liability: monthly for sellers with monthly liability over $200, quarterly for $50–$200, and annual for under $50. Monthly returns on Form ST-3 are due the 20th of the next month. Quarterly returns are due the 20th of the month after quarter-end. Annual returns are due January 20. E-filing via Georgia Tax Center is required for businesses over $500/year in tax.
What are the most common Georgia sales tax mistakes?
(1) Treating GA as a 4% rate everywhere — county LOST + SPLOST + E-LOST stack to 6–9% combined. (2) Forgetting that GA does NOT tax SaaS — over-collecting on SaaS customers creates a refund liability. (3) Missing TSPLOST/MARTA in Atlanta-area zips — they add 0.4–1% on top of standard county. (4) Not tracking SPLOST sunsets — a 1% local rate can disappear when a SPLOST project sunsets, causing systematic over-collection if your rate table is stale. (5) Missing the 20th-of-month deadline.
More on US compliance
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5% of the tax due or $5, whichever is greater, for each month or fraction of a month the return is delinquent.
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Authoritative sources
US tax rules change every filing season. Always verify the current position with the official sources below before filing.
- IRS — irs.govInternal Revenue Service. Forms, publications, due dates, and current-year thresholds for federal income tax, payroll tax, and 1099 reporting.
- IRS — Forms & InstructionsCanonical PDF forms (W-4, W-9, 1099-NEC, 1040-ES, 941, 940, W-2, W-3) with current-year instructions.
- SSA — Business Services OnlineSocial Security Administration portal for W-2 / W-3 e-filing, EIN verification, and AccuWage validation.
- Streamlined Sales Tax — streamlinedsalestax.orgMulti-state Streamlined Sales and Use Tax Agreement (SSUTA) — registration in 24 SST member states with one application.
- Tax Foundation — Sales Tax & NexusIndependent state-by-state research on sales tax rates, economic nexus thresholds, and franchise / margin tax structures.
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