The Duluth, GA sales tax rate is 6%, made up of Georgia’s 4% state tax and Gwinnett County’s 2% local tax. The city of Duluth adds nothing on top, so every taxable purchase inside city limits carries the same combined rate.1FindLaw. Georgia Code Title 48 Revenue and Taxation 48-8-30
The county’s 2% share comes from two voter-approved 1% taxes: an Education Special Purpose Local Option Sales Tax (E-SPLOST) that funds school construction, buses, technology, and facility upgrades,2Gwinnett County Public Schools. E-SPLOST Spring 2025 and a Local Option Sales Tax (LOST) that offsets property taxes and pays for general county and municipal services.
What Is Taxed at a Lower Rate or Not at All
Several common purchases don’t get charged the full 6%.
Groceries
Food and food ingredients bought for consumption at home skip the 4% state portion but still owe the 2% local county tax.3Justia. Georgia Code 48-8-3 – Exemptions Restaurant meals, prepared foods, and anything eaten on-premises don’t qualify. A grocery cart is taxed at 2%; a takeout order is taxed at 6%.
Prescription Drugs and Medical Items
Prescription medications, prescription eyeglasses, contacts, and nonprescription insulin are fully exempt from both the state and local portions. The exemption has been in place across Georgia since 1984.4Georgia Department of Audits. Georgia Sales Tax Exemption for Prescription Drugs
Resale Purchases
Businesses buying inventory to resell can purchase tax-free by giving the supplier a completed Georgia Form ST-5 Certificate of Exemption, which requires a valid Georgia sales and use tax registration number. If you buy something under the exemption and then use it yourself instead of reselling it, you owe use tax on the item.
Sales Tax Holidays
Georgia sets aside short tax-free shopping windows. For 2026:
- Back-to-school, July 31–August 1: clothing up to $100 per item, school supplies up to $20 per item, and computers up to $1,000 per item are exempt.
- Energy savings, October 2–4: ENERGY STAR and WaterSense certified products and appliances up to $1,500 per item are exempt.
During these holidays, qualifying items are free of both state and local tax. Limits apply per item, so multiple qualifying items in one transaction each get the break.
Registering Your Duluth Business to Collect Sales Tax
Any business that meets Georgia’s definition of a dealer has to register for a sales and use tax number before making taxable sales, whether those sales happen in-store, online, wholesale, or mostly exempt.5Georgia Department of Revenue. Sales and Use Tax Registration – FAQ Registration is free through the Georgia Tax Center at gtc.dor.ga.gov, and you’ll need your FEIN (or SSN if you’re a sole proprietor), the business’s legal name, and information about your activity.6Department of Revenue. Tax Registration
State registration isn’t the last step in Duluth. Every business operating inside the city must also obtain an Occupational Tax Certificate from the city and renew it every year.7City of Duluth. Occupational Tax That’s a separate local requirement, not a substitute for the state number.
Filing Returns and Paying What You Collect
Georgia uses Form ST-3 for sales and use tax returns.8Georgia Department of Revenue. ST-3 Sales and Use Tax Returns and Addendums You report gross sales for the period, subtract exempt transactions, and calculate 6% on what’s left. Returns and payments run through the Georgia Tax Center, which accepts ACH debit and credit card.
Most businesses file monthly. Some qualify for quarterly or annual schedules based on total liability. The deadline is the 20th day of the month following the end of the reporting period; a mailed paper return must be postmarked by that date.9Department of Revenue. File and Pay
Penalties for Filing or Paying Late
Georgia charges two penalties that can stack on a late return:
- Failure to file: the greater of 5% of the tax due or $5 for the first month late, with the same amount added each additional month, capped at the greater of 25% or $25.
- Failure to pay: 5% per month on the unpaid balance, capped at 25%. This one applies even if you filed on time but didn’t send the money.
Both penalties come from O.C.G.A. § 48-8-66, and interest also accrues monthly on unpaid tax from the original due date until the balance is cleared. The annual interest rate is the Federal Reserve prime rate plus 3%, reset each January.10Department of Revenue. Penalty and Interest Rates
Willfully keeping tax you collected from customers is treated more seriously. Under O.C.G.A. § 48-2-44, deliberately failing to remit collected tax carries a 10% penalty on the withheld amount plus interest from the original due date.11Justia. Georgia Code 48-2-44 – Willful Failure to File Return or Pay Georgia treats collected sales tax as money held in trust for the state.
Use Tax on Out-of-State Purchases
When you buy something from an out-of-state seller who doesn’t collect Georgia tax, you owe use tax at the same combined 6% rate that would apply in Duluth.12Georgia Department of Revenue. Consumers Use Tax Return Any sales tax already paid to another state on the same item can be credited against what you owe Georgia, so you’re not taxed twice.
Individuals who aren’t registered dealers report this on a Consumer’s Use Tax Return, which is separate from the ST-3 businesses file. The obligation covers taxable items bought online, from catalogs, or while traveling in another state without paying Georgia tax.
Rules for Remote Sellers and Online Marketplaces
Out-of-state sellers have to collect Georgia sales tax once they exceed $100,000 in gross revenue or 200 separate transactions into Georgia in the previous or current calendar year.13Streamlined Sales Tax. Remote Seller State Guidance Physical presence in the state isn’t required; the thresholds are based on economic activity alone.
Since April 2020, marketplace facilitators such as Amazon, Etsy, and eBay have been required to collect and remit Georgia sales tax on behalf of the third-party sellers using their platforms. Marketplace sales still count toward the seller’s own economic nexus threshold for sales made through other channels. A seller whose only Georgia activity is through a marketplace that already collects the tax generally doesn’t need a separate Georgia registration for those sales, but anyone also selling through their own website or at Georgia trade shows needs to track total exposure on their own.