# Georgia SaaS Sales Tax: 2026 Guide

Canonical: https://trykintsugi.com/blog/georgia-saas-sales-tax
Published: 2026-09-26

Georgia doesn't tax SaaS or electronically delivered prewritten software. See the statute, the invoice rule that protects the exemption, and nexus basics.

SaaS is not subject to sales tax in Georgia. Georgia treats prewritten software as tangible personal property, but O.C.G.A. § 48-8-3(91) exempts prewritten software delivered electronically or by load and leave, and the Georgia Department of Revenue has ruled that hosted services, where the customer never takes title, possession, or control of the provider's software or equipment, are not sales at all. Software delivered on tangible media remains taxable.

This guide covers the rule, the documentation Georgia expects, and registration questions for SaaS sellers. It is educational information, not tax advice. For other states, see our [SaaS sales tax by state guide](/blog/sales-tax-on-saas).

## Georgia SaaS sales tax at a glance

| Question | Answer |
| --- | --- |
| Is SaaS taxable? | No |
| Key authority | O.C.G.A. § 48-8-3(91); Ga. Comp. R. & Regs. 560-12-2-.111; Letter Rulings SUT-2014-15 and SUT-2018-10 |
| Electronically delivered prewritten software | Exempt |
| Software on tangible media | Taxable |
| B2B vs B2C | No difference |
| Documentation | Invoices should show electronic delivery; otherwise tangible delivery is presumed |

## Why SaaS is not taxable in Georgia

Georgia's starting point is that prewritten computer software is tangible personal property. Two rules take SaaS out of the tax:

1. **Electronic delivery exemption.** O.C.G.A. § 48-8-3(91) exempts prewritten software "delivered to the purchaser electronically or by means of load and leave." Georgia's regulation defines electronic delivery as delivery by any means other than tangible storage media. In Letter Ruling SUT-2018-10, the Department applied this exemption to customized prewritten software that was installed remotely.
2. **Hosted services are not sales.** In Letter Ruling SUT-2014-15, the Department considered an IT provider that hosted software and managed servers for customers who never received title to, possession of, or control over the provider's equipment or software. It concluded those charges were not sales of tangible personal property and that server and storage management services are not taxable services in Georgia. The provider pays tax on the equipment and software it buys to deliver the service.

## When software is taxable in Georgia

- **Tangible media.** Prewritten software delivered on a disk, drive, or other storage media is taxable.
- **Missing documentation.** Under Regulation 560-12-2-.111, if the invoice does not show how the software was delivered, the Department presumes tangible delivery. Invoices should state that delivery was electronic.
- **Bundles with tangible property.** Hardware or other tangible goods sold with software are taxable, and bundled pricing can complicate the analysis. Separately state software access and any physical items.

## B2B vs B2C

Georgia does not distinguish between business and consumer buyers for SaaS. A SaaS subscription is not taxable for either.

## Nexus and registration

Nontaxable SaaS does not create a Georgia collection obligation by itself. Remote sellers of taxable goods must register and collect once they have more than $100,000 in Georgia retail sales, or 200 or more separate retail sales into Georgia, in the previous or current calendar year (Policy Bulletin SUT-2019-02).

One Georgia-specific point is worth knowing. In Letter Ruling SUT-2018-10, the Department noted that a dealer must register under O.C.G.A. § 48-8-59 even if all of its sales will be exempt, and must file returns reporting those exempt sales. A SaaS company with a physical presence in Georgia, or one that sells any taxable items there, should confirm its registration status with the Department through the Georgia Tax Center.

For rates, filing frequencies, and registration steps, see our [Georgia sales tax guide](/sales-tax-guides/usa/georgia).

## What to do next

1. Confirm no product ships software on physical media.
2. State the electronic delivery method on invoices and contracts.
3. Separately price any hardware or physical deliverables.
4. Check whether your Georgia presence or taxable sales require registration, even if SaaS itself is exempt.

Kintsugi applies each state's SaaS rules to your catalog and tracks where you have nexus. See [Kintsugi for SaaS](/solutions/saas).

## Frequently asked questions

### Is SaaS taxable in Georgia?

No. Prewritten software delivered electronically is exempt under O.C.G.A. § 48-8-3(91), and hosted services where the customer never takes possession or control of the software are not sales of tangible personal property.

### Is downloaded software taxable in Georgia?

No, if it is delivered electronically or by load and leave. Software delivered on tangible media is taxable.

### Why do Georgia invoices need to show electronic delivery?

Georgia's regulation presumes software was delivered in tangible form unless the seller's records show otherwise. Stating electronic delivery on the invoice supports the exemption.

### Do I need to register in Georgia if all my sales are SaaS?

It depends on your connection to Georgia. The Department has said that dealers must register even when all their sales are exempt, so a SaaS company with a Georgia presence or taxable Georgia sales should confirm its status.

## Sources

- Georgia Department of Revenue, [Letter Ruling SUT-2014-15 (information technology services)](https://dor.georgia.gov/document/letter-ruling/sales-tax-letter-ruling-service-provider-information-technology-services/download)
- Georgia Department of Revenue, [Letter Ruling SUT-2018-10](https://dor.georgia.gov/document/sut-lr/lr-sut-2018-10/download)
- Georgia Department of Revenue, [Out-of-state sellers](https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers) and [Policy Bulletin SUT-2019-02](https://dor.georgia.gov/media/35301/download)