Free guide for contractors
Do contractors charge sales tax in Georgia?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
GA Georgia
Usually no tax on the invoiceNo, for real property work. Georgia contractors who furnish and install materials are the consumers of those materials and pay the tax when buying.
Under O.C.G.A. 48-8-63, a contractor who furnishes materials and performs work on real property is the consumer of the materials it uses. The Department of Revenue says this is true even on contracts for government agencies.
Where goods are sold and installed, the Department says repair and installation labor is exempt when separately stated on the invoice. That applies to sales of goods, not to real property contracts.
The state rate is 4%, plus local taxes.
It turns on: whether the job is a real property contract or a sale of goods with installation; for a sale with installation, whether labor is stated separately.
Watch out for
- Contractors cannot claim the 2025 local tax exemption for school construction materials; only the school system can, by refund (Georgia DOR, SUT-2025-01).
“deemed to be the consumer of all tangible personal property used or consumed in performing such contract”O.C.G.A. 48-8-63, as quoted in Georgia DOR Contractor FAQs