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Georgia

Georgia small business taxes: Types, rates, deadlines, and how to file in 2025

By QuickBooks
Published on April 28, 2025

Did you know that Georgia has been recognized as the No. 1 state for business in the U.S. for 10 years in a row by Area Development magazine? No other state in the country has received this distinction and is a testament to the state’s unwavering commitment to fostering growth, innovation, and opportunity. From cities to the most rural corners, Georgia’s business-friendly environment continues to attract investments and create jobs. Along with being a business-friendly state, business taxes in Georgia are some of the most advantageous in the country. 

Explore our guide to understand the essentials of Georgia business taxes, including key tax types like payroll, and learn how to leverage exemptions, credits, and incentives to save money. Whether you’re starting a new business or refining your tax strategy, this guide has everything you need.

Refer to the table of contents below to quickly find the information that matters most to you:

Taxes in Georgia overview

  • Georgia has a flat income tax rate of 5.39% for both individuals and corporations.
  • A net worth tax may apply to corporations
  • The state imposes a 4% base sales tax, with additional local taxes varying by jurisdiction 
  • Certain nonprofit organizations and businesses may qualify for sales and use tax exemptions
  • Other business taxes may include unemployment taxes, excise taxes, and property taxes

Key Georgia business tax adjustments for 2025

Staying informed about the latest tax changes is essential for businesses to maintain compliance, optimize their tax strategies, and plan ahead. Here are some important adjustments and updates for 2025 that could impact your business:

Hurricane Helene relief extension

Individuals and businesses with 2024 income tax returns typically due in March or April 2025 have a filing deadline of May 1, 2025, without having to file an extension

Hurricane Debby relief extension

Taxpayers affected by Hurricane Debby who had certain income tax returns and payments postponed until Feb. 3, 2025, will receive the income tax extension to May 1, 2025, for those returns and payments. 

Standard deduction increase

Georgia increased its standard deduction to $12,000 for single filers and $24,000 for married couples filing jointly in 2024.

Income tax rate decrease

State income tax has decreased to 5.39%. 

Georgia state income taxes

Georgia income taxes are an important financial responsibility for individuals and businesses. With a graduated personal income tax system and distinct business tax obligations, understanding the specifics is crucial for ensuring compliance and optimizing potential savings.

Does Georgia have state income tax?

Yes, Georgia does have a state income tax. It is currently 5.39%.

Filing requirement. You must file a Georgia income tax return if you are required to file a federal income tax return.

State-only taxable income: You must file if you have income taxable in Georgia that is not subject to federal income tax.

Income thresholds: You must file if your income exceeds Georgia's filing thresholds for 2025, which are:

  • Single, head of household, or qualifying widow(er): $12,000
  • Married filing jointly: $24,000
  • Married filing separately: $12,000
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Types of business taxes in Georgia

As a business owner, you may be responsible for reporting and paying other business taxes in addition to withholding payroll taxes from your employees' paychecks. From federal to state and local levels, understanding the different tax programs and their impact on your business’s finances is important.

Federal taxes

You'll be responsible for federal taxes in whatever state you open a business in. Unfortunately, there are dozens of federal tax forms with unique due dates and requirements. Using an accountant or small business accounting software can be helpful in avoiding mistakes that can lead to overpayment or penalties. 

As a business owner, you have both personal and business tax filing obligations. Here’s what you need to know:

Personal tax filing:

Federal income tax returns:

Every individual is required to file and pay federal personal income tax. This forms the foundation of your overall tax responsibility.

Business tax filing

Business owners have additional filing requirements, depending on the business structure:

  • Sole proprietorship: Income and expenses are reported on your personal tax return using Schedule C (Form 1040).
  • Partnership: A partnership must file an information return (Form 1065) to report income, deductions, and other relevant details, while each partner reports their share of income on their personal return.
  • Corporation: A corporation files a corporate tax return (Form 1120), paying taxes on its profits.
  • S Corporation: An S corporation files an informational return (Form 1120S). Its income, losses, and deductions pass through to shareholders, who report them on their personal returns.
  • Limited Liability Companies (LLCs): LLCs are not classified separately for federal tax purposes and are taxed based on their ownership structure. Single-member LLCs default to sole proprietorship taxation or may elect corporate taxation, while multi-member LLCs default to partnership taxation or may elect corporate taxation.

Self-employment tax

If you work for yourself and earn more than $400 a year, you pay toward Social Security and Medicare programs through a self-employment tax. The Social Security system provides retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

Employment taxes

As an employer, you are responsible for withholding and depositing federal income tax and the employee contribution to Social Security and Medicare taxes. You must also pay the employer portion of Medicare and Social Security and pay federal unemployment tax (FUTA). 

Georgia state taxes

As a business owner, you must understand your state tax obligations.

Georgia corporate income tax

In Georgia, corporations are subject to a flat income tax rate of 5.39% on their Georgia taxable net income.

How is the corporate income tax calculated?

The corporate income tax is calculated by starting with the corporation's federal taxable income as reported to the IRS. This amount is adjusted based on Georgia-specific additions and subtractions as defined by state tax laws, resulting in the Georgia taxable net income. The tax owed is then determined by applying the 5.39% tax rate to this taxable net income.

Who is liable for the corporate income tax?

In Georgia, corporations are liable for corporate income tax if incorporated in the state, conducting business there, or having nexus. A corporation has nexus in Georgia if it:

  • Owns or leases property in the state.
  • Has employees working in Georgia.
  • Conducts business through offices, facilities, or other physical presence in Georgia.
  • Engages in substantial economic activity in Georgia, including certain levels of sales or transactions

Georgia net worth tax

Unlike other states that may have a franchise tax, Georgia has a net worth tax. This tax applies to the corporation’s net worth and is assessed for the privilege of conducting business or maintaining a corporate franchise in Georgia.

Who is liable for the net worth tax?

Corporations operating in Georgia are required to file a net worth tax return. Companies with a net worth under $100,000 are exempt, while those with a net worth over $22 million pay a maximum tax of $5,000. Filing deadlines depend on the corporation's incorporation or qualification date.

How is the net worth tax calculated?

The net worth tax in Georgia is calculated based on a corporation's taxable net worth. 

  • For Georgia corporations and domesticated foreign corporations, the tax applies to 100% of their taxable net worth. 
  • For corporations incorporated outside Georgia, the tax is determined using an apportionment ratio. This ratio is calculated by dividing the corporation’s property and gross receipts located within Georgia by its total property and gross receipts everywhere. This apportioned amount represents the portion of the corporation’s net worth subject to Georgia’s net worth tax.

See the Georgia Department of Revenue website for more information on the net worth tax. 

Excise taxes

In Georgia, excise taxes are levied on specific goods and services, including alcoholic beverages, gasoline, and tobacco products. These taxes contribute to state revenue and fund various public services, including transportation infrastructure and public health programs.

  • Alcoholic beverages: Georgia imposes excise taxes on various alcoholic beverages, with rates varying by type. For instance, distilled spirits are taxed at a rate of 50¢ per liter for spirits manufactured inside Georgia, and $1 per liter for those manufactured outside the state.
  • Tobacco products: Cigarettes in Georgia are subject to an excise tax of 37 cents per pack of 20 cigarettes. Other tobacco products, such as cigars and smokeless tobacco, are taxed based on weight or wholesale price.
  • Motor fuels: As of January 1, 2025, Georgia's state excise tax rates for gasoline is $0.331 cents per gallon.

Unemployment tax

As in all states, employers must pay federal unemployment insurance (UI) taxes. In Georgia, employers are also required to pay state unemployment insurance (UI) taxes. 

The taxable wage base for 2025 is $9,500 per employee. Tax rates for employers vary based on their experience rating and can range from 0.04% to 8.1%. Newly liable employers are typically assigned a beginning tax rate of 2.7%.

Employers must file tax and wage reports quarterly, with deadlines on April 30, July 31, October 31, and January 31. Timely filing and payment are essential to remain in compliance and avoid penalties.

Local taxes

In addition to federal and state taxes, many cities, counties, and other jurisdictions in Georgia levy other kinds of local taxes to fund essential services and infrastructure such as schools, roads, police, and fire protection.

Sales and use taxes: 

In Georgia, a sales and use tax is applied to most tangible goods and certain services. The statewide base sales tax rate is 4%. Local counties and municipalities may impose their own sales taxes, leading to higher combined rates depending on the location.

For example, the total sales tax rate in Appling County is 8%, which includes:

  • State sales tax: 4%
  • Local Option Sales Tax (LOST): 1%
  • Educational Local Option Sales Tax (ELOST): 1%
  • Special Purpose Local Option Sales Tax (SPLOST): 1%
  •  Transportation Special Purpose Local Option Sales Tax (TSPLOST): 1%

It's important to note that local rates can vary by jurisdiction and may change over time. Consult the Georgia Department of Revenue or local tax authorities to determine the current applicable sales tax rates for specific locations.

Remote seller tax considerations

In Georgia, remote sellers—businesses without a physical presence in the state—are required to collect and remit sales and use tax if their total sales into Georgia equal or exceed $100,000 in the previous or current calendar year. This obligation arises from the state's economic nexus laws, which mandate tax collection based on sales volume rather than physical presence.

Remote sellers meeting this threshold must register with the Georgia Department of Revenue to ensure compliance with state tax laws.

Property taxes

In Georgia, property taxes for businesses are based on the fair market value of the property, assessed annually by local tax assessors. Taxes fund local services like schools and infrastructure and are usually due by December 20, though deadlines may vary. 

Georgia business tax deductions, credits, and exemptions

Georgia offers a range of business tax deductions, credits, and exemptions aimed at reducing taxable income and incentivizing specific economic activities. The following are some state-level incentives that can significantly lower a business's overall tax burden.

Georgia’s Quality Jobs Tax Credit. Businesses in Georgia can qualify for the Quality Jobs Tax Credit by creating at least 50 jobs within 24 months that pay at least 10% above the county’s average wage. Qualifying jobs earn a tax credit of $2,500 to $5,000 per job, annually, for five years. The credit amount is based on the average wage of the new jobs, and businesses have a 7-year period to utilize the credits.

Georgia R&D Tax Credit. Georgia’s R&D Tax Credit rewards companies that increase qualified research spending, whether they’re startups, first-time R&D investors, or established businesses expanding their R&D. The credit offsets up to 50% of Georgia income tax liability after other credits, with unused credits carried forward for up to 10 years. Excess credits can also be applied to state payroll withholding.

Georgia Investment Tax credits. Georgia investment tax credits support business growth by offsetting the cost of facility upgrades or expansions. Eligible manufacturing and telecommunications businesses operating in Georgia for at least three years can earn 1% to 8% of qualified investments over $50,000. The credit varies by location and type of investment. Credits can offset up to 50% of corporate income tax liability, with unused credits carried forward for 10 years. Businesses must choose between the Investment Tax Credit and the Job Tax Credit, as they cannot claim both.

Georgia Port Tax Credit Bonus. Companies increasing imports or exports through Georgia ports by at least 10% (from a base of 10 TEU units) and qualifying for the Job Tax Credit or Investment Tax Credit can receive an additional $1,250 per new job annually for 5 years, provided both the job and increased port activity are sustained.

Credits and exemptions for Georgia sales tax

In Georgia, certain businesses and activities qualify for sales tax exemptions, providing significant savings on operational purchases.

Nonprofit organizations

Georgia offers limited sales and use tax exemptions to specific nonprofit organizations. Qualifying organizations must obtain an exemption determination letter from the Georgia Department of Revenue to qualify.

Manufacturing sales tax exemption

Georgia offers a Sales and Use Tax exemption for manufacturing facilities, distribution centers, data centers, and high-tech companies. This exemption allows businesses to buy specific goods and services tax-free, provided the purchases are directly used in their operations, helping to lower overall costs.

For detailed information and application procedures, businesses should consult the Georgia Department of Revenue and consider seeking professional tax advice to ensure compliance and maximize benefits.

High-tech companies

Georgia offers a full sales and use tax exemption on computer equipment for high-tech companies investing at least $15 million in qualifying equipment. Eligibility is limited to specific NAICS classifications, including single-user data centers, software publishers, computer systems design, certain telecommunications firms, financial transaction processors, and R&D centers.

Types of Georgia taxes for different business entity types

It’s important to understand the implications of your business structure on your tax liability. Different types of business entities in Georgia may be subject to different taxes. If you haven’t set up your business yet and are considering options for structuring it, knowing the tax rules can help you make a decision. 

Of course, all types of businesses will need to pay federal personal or corporate income tax, depending on their structure, plus unemployment insurance and any sales and use, property, or excise taxes that apply to their specific business.

Georgia sales taxes

In Georgia, sales and use tax applies to the retail sale, lease, or rental of tangible personal property and certain services. The state imposes a base sales tax rate of 4%. 

Local jurisdictions, such as counties and municipalities, may levy additional sales taxes, resulting in varying total rates across the state. As of January 1, 2025, the combined state and local sales tax rates range from 6% to 8% depending on the jurisdiction. You can look for the latest local sales tax rates in Georgia online. 

In Georgia, most services are not subject to sales tax. However, some exceptions include the following:

  • Accommodations
  • Admission sales for games and amusement activities
  • In-state transportation of individuals, such as taxi and limousine services

Do you need a sales tax permit?

Businesses operating in Georgia are required to register for a sales and use tax certificate and collect the appropriate sales tax from customers. Collected taxes must be remitted to the Georgia Department of Revenue, typically on a monthly basis, though some businesses may qualify for quarterly or annual filing based on their sales volume. Returns and payments can be submitted electronically through the Georgia Tax Center. 

How to file business taxes in Georgia 

A note is placed on a paper on top of a table.

Filing business taxes in Georgia involves meeting both federal and state requirements. Businesses must comply with federal tax obligations by using the appropriate IRS forms based on their structure

When are business taxes due in Georgia?

Business tax deadlines in Georgia depend on the type of tax and the structure of the business, with federal and state filing dates often aligning. Below are the key due dates for both federal and Georgia state taxes:

Corporate income tax and net worth tax

  • C Corporations. Returns are due by the 15th day of the fourth month following the end of the taxable year. For calendar-year corporations, this is typically April 15.
  • S Corporations. Returns are due by the 15th day of the third month after the end of the taxable year. For calendar-year S corporations, this is generally March 15.
  • Partnerships. Returns are due by the 15th day of the third month following the close of the taxable year, typically March 15 for calendar-year partnerships.

Estimated taxes

Estimated tax payments are required in Georgia for both individuals and businesses that anticipate owing a certain amount of tax for the year.

Individuals and fiduciaries: If you expect to owe more than $500 in Georgia state income tax after subtracting withholding and credits, you're generally required to make estimated tax payments. This includes income from self-employment, interest, dividends, rent, and other sources not subject to withholding. You can use Form 500-ES to calculate and submit these payments.

Corporations and partnerships: Corporations expecting to owe more than $500 in Georgia corporate income tax must make estimated tax payments. Similarly, partnerships that elect to pay tax at the entity level are required to make estimated tax payments in the same manner as corporations. Form 602-ES is used for these payments.

Failing to make required estimated tax payments can result in penalties and interest. It's important to calculate your expected tax liability accurately and make timely payments to avoid these charges. For more detailed information and access to the necessary forms, visit the Georgia Department of Revenue website.

Due dates for estimated taxes for businesses

The due dates for federal estimated tax payments are as follows:

  1. 1st Quarter Payment: Due on April 15 (for income earned January 1 - March 31).
  2. 2nd Quarter Payment: Due on June 15 (for income earned April 1 - May 31).
  3. 3rd Quarter Payment: Due on September 15 (for income earned June 1 - August 31).
  4. 4th Quarter Payment: Due on January 15 of the following year (for income earned September 1 - December 31).

If any due date falls on a weekend or holiday, the payment is due the next business day.

Hurricane-related tax extensions in Georgia

In response to Hurricanes Helene and Debby, both the IRS and the Georgia Department of Revenue have extended various tax deadlines for affected taxpayers in FEMA-declared disaster areas. These extensions aim to provide relief to individuals and businesses recovering from the hurricanes.

Federal tax extensions

The IRS has extended federal tax deadlines to May 1, 2025, for eligible taxpayers. This applies to:

  • 2024 income tax returns typically due in March or April 2025.
  • Quarterly estimated tax payments originally due on January 15, 2025, and April 15, 2025.
  • Quarterly payroll and excise tax returns due on October 31, 2024, January 31, 2025, and April 30, 2025.

These extensions provide affected taxpayers with additional time to file returns and make payments without incurring penalties. However, you’re encouraged to file as early as possible, even if you qualify for extensions. For more information and the latest updates, visit the IRS and Georgia Department of Revenue websites.

Year-end business tax checklist

Stress less during tax season. Use this small business tax checklist to ensure you have everything you need to stay organized throughout the year and file your taxes accurately and on time:

Year-round business tax preparation

  • Maintain accurate records: Keep detailed records of all income and expenses throughout the year.
  • Categorize expenses: Organize your expenses into relevant categories for easier tax preparation.
  • Reconcile bank accounts: Regularly reconcile your bank accounts to ensure accuracy and identify any discrepancies.
  • Track mileage: If you use your vehicle for business purposes, keep a detailed mileage log.
  • Stay informed: Keep up-to-date on federal and state tax laws and regulations that might affect your business.

Pre-filing checklist

  • Gather necessary forms and documents:
  • Previous year's tax returns (up to three years prior for both state and federal)
  • Accounting journals and ledgers
  • Balance sheet and income statement
  • Transactional supporting documents (bank deposit slips, bank statements, invoices, checkbook, credit card statements)
  • Vehicle and mileage logs
  • Expense receipts
  • Employee tax forms (W-9, I-9, W-2, 1099)
  • Non-employee tax forms (1099-MISC)
  • State tax forms
  • List of home office deductions (if applicable)
  • Understand which tax forms to file: Determine the specific tax forms required for your business structure and tax obligations.
  • Review and verify information: Double-check all information for accuracy before filing.
  • Consider estimated taxes: If required, calculate and pay estimated taxes throughout the year.

Filing and beyond

  • File your tax returns: Submit your tax returns electronically or by mail before the deadline.
  • Request filing extensions (if needed): If you need more time to file, request an extension before the deadline.
  • Keep copies of your tax returns: Store copies of your filed tax returns for future reference.
  • Plan for next year: Start organizing your records and planning for the next tax season.

Commonly missed tax deductions and credits

Take advantage of valuable tax breaks. Many small businesses overlook possible deductions and credits that could significantly reduce their tax liability. Be sure you claim all the deductions and credits you qualify for.

Common business tax deductions

  • Advertising
  • Depreciation of assets
  • Employee salaries and benefits
  • General business expenses
  • Home office expenses
  • Insurance
  • Business loan interest
  • Internet and phone services
  • Legal services
  • Licenses
  • Meals and entertainment (for business purposes)
  • Business-related travel and mileage expenses
  • Commercial property rent 
  • Training and education
  • Cost of goods sold (COGS)
  • Business banking fees

Proper documentation and recordkeeping are essential to justify deductions in case of an audit. Consulting a tax professional can help ensure compliance with tax laws and maximize your eligible deductions.

Small business tax credits

Take time to familiarize yourself with the variety of business tax credits that may be available to you. Here are some common ones: 

For a complete list of federal tax credits and detailed eligibility requirements, visit the IRS website.

In addition to the federal tax incentives, consider if you could qualify for ones specifically for Texas businesses, such as:

  • Georgia Tourism Development Act. The Georgia Tourism Development Act incentivizes tourism and economic growth by offering tax rebates to businesses investing in tourism-related projects. Qualifying projects can receive a portion of the state sales tax generated by the development for up to 10 years, helping offset costs for construction, renovations, or promotions. The rebate amount is tied to the investment level and projected sales tax increase. For eligibility details, visit the Georgia Department of Community Affairs website.
  • Georgia Film Tax Credit. Film and interactive projects in Georgia may qualify for the Georgia Film Tax Credit under the Georgia Entertainment Industry Investment Act. This credit applies to feature films, TV series, commercials, music videos, and qualified interactive entertainment projects. Eligibility is determined by the Georgia Department of Economic Development, while the Department of Revenue certifies the credit amount based on production cost documentation.
  • Business Enterprise Vehicle Credit. The Business Enterprise Vehicle Credit in Georgia is available to businesses that purchase vehicles exclusively for transporting employees. To qualify, the vehicles must carry an average of at least four employees daily for a full taxable year. This credit cannot be claimed if the low or zero-emission vehicle credit was applied at the time of purchase.

See the Georgia Department of Revenue website to download a summary of tax credits. 

Where do I send my Georgia tax reports and payments?

The Department of Revenue (DOR) oversees the collection of various state taxes, including sales and use taxes. Taxpayers can file returns and make payments through the Georgia Tax Center (GTC), the DOR's secure electronic portal. 

Should I file and pay by paper or electronically?

Electronic filing and payment are mandatory for certain taxpayers:

  • Sales and use tax: If you owe more than $500 in connection with any sales or use tax return, report, or document, you are required to file and pay electronically. This requirement applies even if some subsequent payments for these tax types fall below $500.
  • Income tax returns: Taxpayers who remit payments via electronic funds transfer, whether mandatory or voluntary, must file all associated returns electronically. Non-individual income tax returns must be e-filed when their federal counterparts are required to be filed electronically. Returns involving series 100 tax credits are also mandated to be filed electronically. 

Common mistakes to avoid when filing business taxes in Georgia

Managing business taxes may seem complicated, but with some preparation, you can stay on track and avoid mistakes. Here are some common pitfalls to watch out for:

Misclassifying workers

Make sure you're correctly classifying your workers as employees or independent contractors. Misclassification can lead to hefty penalties and back taxes.

Missing deductions

Don't leave money on the table. Explore all eligible deductions, such as those for home office expenses, business travel, and equipment purchases.

Forgetting about the net worth tax

Remember that Georgia has a net worth tax. Make sure you understand the requirements and deadlines for filing.

Overlooking sales tax

If your business sells taxable goods or services, ensure you're collecting and remitting sales tax correctly. Georgia has varying local rates, so stay informed.

Failing to pay estimated taxes

If you expect to owe a significant amount in taxes, make sure you're paying estimated taxes throughout the year to avoid penalties.

By staying organized, understanding the tax laws, and seeking professional advice when needed, you can manage your Georgia tax responsibilities with confidence and keep your business on the path to success.

Find an accountant to help prepare your Georgia business taxes

You’re an expert in your business, but when it comes to taxes, a tax professional can provide valuable guidance. Because of the importance of correct filing to avoid overpayments or fines, consider hiring an experienced accountant or bookkeeper who’s knowledgeable about tax issues and Georgia tax laws and codes. 

In Georgia, there are no state-specific licensing requirements for tax preparers, however you should ensure your chosen professional: 

  • Meets IRS requirements
  • Has a Preparer Tax Identification Number (PTIN) and an Electronic Filing Identification Number (EFIN) for filing e-file returns.
  • Completed the Annual Filing Season Program (AFSP), which covers topics such as new tax laws, filing requirements, ethics, and professional conduct
  • Has registered as a third-party filer with the Georgia Department of Revenue if they file electronic tax transactions for clients.

Find an accountant in Georgia here, and consider using the right small business accounting software to streamline your finances and ensure you're prepared for tax season with accurate reporting.

Frequently asked questions

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.


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