State Taxes at a Glance – Georgia
|Type of Tax||2022|
|Individual Rates||1.00% – 5.75%|
|Corporate / Business Tax Rates||5.75% (flat tax)|
|Gross Receipts Tax||None|
|Sales Tax||7.35% (average)|
|Property Taxes||0.91% as a percentage of primary home|
|Estate or Inheritance Tax||None|
State Income Taxes in Georgia
The state of Georgia does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (6). The tax rates range from between 1.00% to 5.75% for 2019. The highest bracket starts at $7,000.
State Business Taxes in Georgia
The state of Georgia has a flat corporate income tax rate of 5.75% on all income on C Corporations. For other businesses that flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rates.
Net Worth Tax in Georgia
In addition to the corporate income tax, Georgia has a Capital Stock Tax known as a Net Worth Tax assessed on capital of Corporations (including LLCs that have elected to be taxed as Corporations). If your corporate assets are less than $100,000, you are exempt. The tax is based on a tax table provided by the Dept of Taxation, and the maximum amount of your Net Worth Tax is $5,000.
Sales and Property Taxes in Georgia
Sales Tax – like most states, Georgia has both a local and state sales tax rates. Their state sales tax rate is 4.00% and their local sales tax rate is 3.35% (which bring the total average sales tax rate to 7.35%).
Property Taxes in Georgia – the average property tax rate for residential property in the state of Georgia is 0.91%. Which puts it slightly below the national average of 1.08%.
Georgia DMV Taxes and Fees
Georgia DMV fees are based on the value of the vehicle (Ad Valorem Tax), which means they are deductible. There two types of AVT in Georgia:
- AVT – Ad Valorem Tax – pre-2013 – annual tax based on the vehicles value
- TAVT – Title Ad Valorem Tax – post-2013 – one-time tax of 6.6% when the vehicle title is transferred. The TVAT replaces sales tax.
Any vehicle that is exempt from TVAT, is subject to the annual VAT. These are non-titled vehicles and trailers. You can learn more about Georgia’s DMV taxes & fees here.
Georgia’s presumption is that it’s your permanent place of abode (domicile) if you’ve lived there for over 183 days during the taxable year.
State Tax on Social Security Benefits
Even though Georgia has an income tax, social security benefits are not subject to state tax in “The Peach State.”
Payroll Taxes in Georgia
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
- Wage Base – Georgia has a wage base of $9,500
- UI Rates – range from 0.04% to 8.10%
- Schedules – Georgia has multiple rate schedules regarding UI
Georgia Business Entities – LLCs
Georgia is one of the least expensive states in the country to open an LLC. Here are some important facts:
- Georgia’s annual LLC fee is $50.
- When you register with the state, you pay a one-time fee of $100
- Secretary of State of Georgia website – click here