Georgia Sales Tax Guide for SaaS and E-Commerce Businesses 2025

Georgia imposes a 4% statewide sales tax, plus local rates that can add up to an additional 5%, bringing combined rates as high as 9% in some jurisdictions. The state taxes tangible goods and most digital products, but does not tax SaaS or custom software.

This guide explains how SaaS companies and e-commerce sellers are taxed in Georgia, including nexus rules, marketplace facilitator obligations, filing deadlines, and exemptions.

Last updated: October 2025

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Quick Reference: Georgia Sales & Use Tax 2025

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SaaS & Digital Products in Georgia

Georgia does not tax Software-as-a-Service (SaaS) or custom-developed software. However, prewritten software and digital goods are often taxable.

Key SaaS Rules

• Not taxable: SaaS and cloud-hosted software subscriptions
• Not taxable: Custom-developed software tailored for one customer
• Taxable: Prewritten software delivered electronically or on a physical medium
• Taxable: Digital goods such as e-books, digital music, movies, and streaming services
• Bundled sales: If SaaS is bundled with taxable products and not separately stated, the taxable portion may apply

Source: Georgia DOR – What is Subject to Sales & Use Tax

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E-Commerce & Tangible Goods in Georgia

Georgia uses destination-based sourcing, meaning tax is based on the customer’s delivery location.

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Economic Nexus: Remote Seller Rules

Remote sellers must register and collect Georgia sales tax if, in the current or prior year, they have:

• More than $100,000 in sales into Georgia, or
• 200 or more separate transactions delivered into Georgia

Threshold includes both taxable and exempt sales.

Source: Georgia DOR – Out-of-State Sellers

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Marketplace Facilitator Rules

Marketplace facilitators must collect and remit Georgia sales tax if they meet the same thresholds as remote sellers:

• $100,000 in sales or 200 transactions in Georgia annually
• Marketplaces such as Amazon, Walmart, and Etsy collect on behalf of third-party sellers
• Marketplace sellers should maintain documentation showing tax is collected by the facilitator

Source: Georgia DOR – Marketplace Facilitators

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Filing & Due Dates

• File via: Georgia Tax Center (GTC)
• Filing frequency: Monthly, quarterly, or annually depending on sales volume
• Due date: 20th of the month following the reporting period
• Zero returns: Required even if no taxable sales occurred

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Penalties & Compliance Notes

• Failure to file: Penalty of 5% of unpaid tax per month (max 25%)
• Failure to pay: Additional penalty plus interest
• Recordkeeping: Maintain invoices, contracts, and exemption certificates for SaaS and custom software

See: Georgia DOR – Penalties and Interest

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FAQs: Georgia Sales Tax for SaaS & E-Commerce

Is SaaS taxable in Georgia?
No. SaaS is exempt from Georgia sales tax.

Is custom software taxable?
No. Custom-developed or substantially modified software is exempt.

Are digital goods like e-books and streaming taxable?
Yes. Georgia taxes downloads and streaming services.

What is Georgia’s economic nexus threshold?
Remote sellers must register if they exceed $100,000 in sales or 200 transactions in a year.

Do marketplace facilitators have to collect?
Yes. Marketplaces like Amazon and Etsy collect Georgia sales tax once they cross nexus thresholds.

Does Georgia have local sales tax?
Yes. Local sales tax rates can add up to 5% on top of the statewide 4% rate.

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Official Georgia Resources

• Georgia DOR – Sales & Use Tax
• Georgia DOR – Out-of-State Sellers (Remote Seller Nexus)
• Georgia DOR – Marketplace Facilitators
• Georgia DOR – What is Subject to Sales & Use Tax
• Georgia Tax Center (GTC)
• Georgia Department of Revenue – Contact