Texas vs Georgia Sales Tax: 8.19% vs 7.49%, Nexus 2026
Reviewed by Nexus by State research team using official state tax sources. Last reviewed .
Compare Texas and Georgia sales tax rates: Texas shows a 8.19% combined state and average local rate with a $500,000 economic nexus threshold, while Georgia shows 7.49% with a $100,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.
| Metric | Texas | Georgia |
|---|---|---|
| Economic nexus threshold | $500,000 | $100,000 |
| Transaction threshold | None | 200 |
| State rate | 6.25% | 4.00% |
| Avg. local rate | 1.94% | 3.49% |
| Combined state + local | 8.19% | 7.49% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2019-10-01 | 2020-01-01 |
Which state is easier for sellers?
For low-revenue sellers: nexus triggers first in Georgia because of its $100,000 threshold. If you cross that first, you register there first.
On rate: Georgia is friendlier for customers with a combined state + local rate of 7.49% vs 8.19%.
Georgia also adds a 200-transaction trigger that Texas doesn't have.
Texas — nexus note
Texas sales tax nexus and SaaS taxability: economic nexus applies to remote sellers with $500,000 or more in total Texas revenue during the preceding twelve calendar months. After crossing that safe harbor, Texas requires a permit and sales/use tax collection no later than the first day of the fourth month after the threshold-crossing month. Texas treats data processing as a taxable service and the Comptroller says data processing providers include software-as-a-service sellers and application service providers; 20% of a data-processing charge is exempt, so SaaS treated as data processing is generally taxed on 80% of the invoice amount. Marketplace-only sellers whose marketplace provider certifies Texas collection generally do not need a Texas tax permit, but sellers must keep marketplace-sales records for at least four years.
Georgia — nexus note
Economic nexus triggers at more than $100,000 in gross revenue from Georgia retail sales OR 200 or more separate retail sales in the previous or current calendar year. Remote sellers must collect state and applicable local sales tax.
What to do next
Use the nexus calculator to check exactly which of Texas and Georgia you've already triggered. Then read each state's full guide:
Frequently asked questions
- Which state has the lower sales tax nexus threshold, Texas or Georgia?
- Georgia has the lower economic nexus threshold at $100,000, versus $500,000 in Texas. A seller's Georgia sales would reach the published Georgia threshold first. These are the thresholds published by each state's tax authority as of 2026-05-27; confirm against the official source before registering.
- Do both Texas and Georgia have marketplace facilitator laws?
- Yes. Both Texas and Georgia have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-27.
- Which has the lower sales tax rate, Texas or Georgia?
- Georgia has the lower combined state and local sales tax rate at 7.49%, compared with 8.19% in Texas. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-27.
- Do I need to register for sales tax in both Texas and Georgia?
- It depends on where you cross each state's economic nexus threshold (or have physical presence there). Texas's published threshold is $500,000, and Georgia's is $100,000 or 200 transactions. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-27.
- When did economic nexus take effect in Texas and Georgia?
- Texas's economic nexus rule took effect on 2019-10-01, and Georgia's took effect on 2020-01-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.
More sales tax comparisons
Selling into more than two states? Compare Texas and Georgia against other major markets for nexus thresholds, rates, and marketplace facilitator rules.
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Sources
date_retrieved: Texas 2026-05-25 · Georgia 2026-05-27
- Texas: https://comptroller.texas.gov/
- Texas: https://comptroller.texas.gov/taxes/sales/remote-sellers.php
- Texas: https://comptroller.texas.gov/taxes/publications/96-259.php
- Texas: https://comptroller.texas.gov/taxes/sales/
- Texas: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Texas: https://taxfoundation.org/data/all/state/sales-tax-rates/
- Georgia: https://dor.georgia.gov/
- Georgia: https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers
- Georgia: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Georgia: https://taxfoundation.org/data/all/state/sales-tax-rates/