Tax Exemptions

Tax exemptions help Georgia businesses invest in what’s needed most to expand and profit.

While tax credits promote actions that drive both company growth and economic growth, tax exemptions are focused on saving money for businesses. They help small and large companies reduce up-front costs on business purchases and maintain healthy product inventory.

Georgia’s tax exemptions take two primary forms:


Many types of machinery and equipment are exempt from both state and local sales taxes. Together, that amounts to a 5-8 percent savings on purchases.

Sales Tax and Use Tax Exemption ▶
Details on the items that qualify for sales and use tax exemption ▶


Georgia businesses pay no state property taxes on inventory held in their factories and warehouses. In many Georgia counties, inventory is exempt from local property taxes as well.
More about the statewide inventory tax exemption and local-option freeport law 

Contact GDEcD

To get help expanding or relocating a business in Georgia, contact the Georgia Department of Economic Development or call 404.962.4000.

To get help with specific tax questions for a business in Georgia, contact the Georgia Department of Revenue.

More About Georgia Benefits

Georgia’s industry-specific Project Analysts are available to help you with a wide range of business needs:

  • Site and building services
  • Location data
  • Community contacts and facilitation
  • Cost environment analysis
  • Coordination with state agencies

Business Incentives Brochure

business incentives brochure