Sales tax · Georgia

Georgia Sales Tax for Contractors (2026): Who Pays on a Home Remodel

Whether a Georgia contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 4%.

Short answer: Contractors are the consumers of materials; installing them in a home isn't taxed to the customer. The 2026 rate is 4% plus local.

Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.

The rule in Georgia

Rule

Materials only

Contractors are the consumers of materials; installing them in a home isn't taxed to the customer.

2026 rate

4%

4% plus local

Contract type

Itemizing or time and materials

No change found.

Customer form

None

Source: GA DOR Contractor FAQs (DOR FAQ, undated)

“Contractors are deemed consumers of tangible personal property used in a construction project”

Three jobs, worked

Sales tax by who pays it, state rate only
JobCustomerYou pay
Bathroom
$12,000 job, $5,000 materials
$0$200
Kitchen
$40,000 job, $15,000 materials
$0$600
Addition
$90,000 job, $35,000 materials
$0$1,400

On the kitchen: The customer pays no sales tax. You pay $600 on $15,000 of materials at 4%, and build it into the price.

Georgia sales tax questions

Do contractors charge sales tax in Georgia?

Not on a home remodel. The contractor pays tax on materials when buying them and charges the homeowner none.

Is labor taxable in Georgia?

Not for remodeling a home.

What rate do contractors pay on materials in Georgia?

4% state rate, plus local tax where you buy the materials.

Compare other states

How we checked

We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .

This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.

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