How Much Is the Sales Tax Rate in Atlanta?
Navigate Atlanta's sales tax with confidence. Learn its structure, what applies, and how it affects your purchases in the city.
Sales tax is a consumption tax applied to the sale of various goods and services. Consumers encounter this tax at the point of purchase, where it is added to the listed price of items. Understanding how sales tax functions in Atlanta provides clarity on the financial impact of everyday transactions and helps consumers anticipate costs.
The Current Sales Tax Rate in Atlanta
The combined sales tax rate in Atlanta is 8.9%. This rate applies to the retail sale of tangible personal property and specific services within the city. This percentage represents the total amount added to the price of most taxable goods and services purchased in Atlanta.
Breakdown of the Sales Tax Rate
The 8.9% sales tax rate in Atlanta is a compilation of several distinct taxes. The state of Georgia imposes a 4% sales tax. For transactions within the Fulton County portion of Atlanta, an additional 3% county sales tax applies. This county portion includes a 1% Metropolitan Atlanta Rapid Transit Authority (MARTA) sales tax.
Atlanta also levies a city sales tax of 1.5%. A 0.4% Transportation Special Purpose Local Option Sales Tax (TSPLOST) is also included. These components collectively form the 8.9% combined rate that consumers pay in most of Atlanta. While Atlanta primarily lies within Fulton County, a smaller portion extends into DeKalb County, where the combined rate can vary based on local levies.
What is Subject to Sales Tax
In Georgia, sales tax applies to the retail sale of tangible personal property. This includes a wide array of goods, such as clothing, electronics, and household items. Certain services are also taxable, including hotel accommodations, in-state transportation services like taxis, admission fees for events, and charges for amusement activities. Shipping and handling fees associated with taxable purchases incur sales tax as well.
The state provides some common exemptions from sales tax. Most groceries purchased for consumption at home are exempt from the state sales tax, though they may still be subject to local sales taxes. Prescription medications, eyeglasses, contact lenses, and certain medical devices are exempt from both state and local sales taxes. Items bought for resale by businesses are also not subject to sales tax.
How Sales Tax is Applied
Sales tax is calculated as a percentage of the purchase price of a taxable item or service. For example, if an item costs $100 and the sales tax rate is 8.9%, an additional $8.90 is added to the total. Retailers are responsible for collecting this tax from customers at the point of sale. The collected funds are then remitted by the businesses to the Georgia Department of Revenue.
For online or out-of-state purchases, a “use tax” may apply if sales tax was not collected at the time of the transaction. This ensures that taxable items consumed within the state are still subject to taxation. For items shipped to a buyer, the sales tax rate applicable to the destination address applies, rather than the seller’s location.