Georgia offers a vibrant environment for business, with over 1.4 million small businesses employing about 43% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Georgia is crucial. This guide provides an overview of the various taxes small businesses in Georgia must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Georgia
Business owners in Georgia may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
Corporate Income Tax
Applicable Entities: Corporations, partnerships, LLCs
Tax Rate: 5.19%
Filing Requirements: File Form 600 by the 15th day of the fourth month after the tax year ends for C corporations. File Form 600S by the 15th day of the third month after the tax year ends for S corporations. File Form 700 by the 15th day of the third month after the tax year ends for partnerships.
Estimated Payments: Payments are due quarterly on April 15, June 15, September 15, and December 15 of the tax year.
Net Worth Tax
Applicable Entities: All corporations must file, but only corporations with a net worth over $100,000 are subject to a tax
Tax Rate: Graduated, starting at $125, up to a maximum of $5,000 for net worth in excess of $22 million
Filing Requirements: File Form 600 by the 15th day of the fourth month after the tax year ends for C corporations. File Form 600S by the 15th day of the third month after the tax year ends for S corporations.
Pass-Through Entity (PTE) Tax
Applicable Entities: S corporations, partnerships
Tax Rate: 5.19%
Filing Requirements: Check the election box and complete the applicable schedule on Form 600S for an S corporation or on Form 700 for a partnership.
Estimated Payments: Payments are due quarterly on April 15, June 15, September 15, and December 15 of the tax year.
Sales and Use Tax
Applicable Activities: Retail sales, certain services
Tax Rate: 4% (local rates may also apply)
Filing Requirements: File Form ST-3 monthly, quarterly, or annually based on sales volume.
Estimated Payments: If your company’s tax liability in the previous calendar year exceeded $60,000, excluding local sales taxes, a 50% payment for the tax period is due by the 20th day of the period.
Withholding Tax
Applicable Entities: Employers with employees
Tax Rate: Varies based on Employee’s Withholding Allowance Certificate (Form G-4)
Filing Requirements: File Form G-7 semi-weekly, monthly, quarterly, or annually, depending on the amount to be withheld.
Unemployment Insurance Tax
Applicable Entities: Employers with a quarterly payroll of $1,500 or at least one worker in 20 different calendar weeks during a calendar year
Tax Rate: Varies based on the business’s experience rating
Wage Base: $9,500 per employee per year
Filing Requirements: File quarterly reports Form DOL-4N online by April 30, July 31, October 31, and January 31.
Business Personal Property Tax
Applicable Entities: Businesses using personal property
Tax Rate: Based on property type and value
Filing Requirements: Report annually to the county assessor by April 1.
Nonresident Withholding Tax
Applicable Entities: Pass-through entities with nonresident members
Tax Rate: 4% on distributive share income
Filing Requirements: File Form G-7NRW by the 15th day of the fourth month following the close of the tax year.
How to File and Pay Georgia Business Taxes
Business taxes in Georgia can be filed and paid through various methods.
Online Filing and Payment: Use the Georgia Tax Center for electronic submissions and payments.
Mail: The mailing address depends on the type of form and payment.
Important Deadlines
Keep track of these key dates to avoid penalties:
Corporate Income Tax Returns: Due by the 15th day of the fourth month after the tax year ends for C corps. Due by the 15th day of the third month after the tax year ends for S corporations and partnerships.
Estimated Tax Payments: Due quarterly on April 15, June 15, September 15, and December 15 of the tax year.
Net Worth Tax Returns: Due by the 15th day of the fourth month after the tax year ends for C corporations. Due by the 15th day of the third month after the tax year ends for S corporations.
Sales and Use Tax Returns: Monthly, quarterly, or annual filing based on sales volume.
Withholding Tax Returns: Due semi-weekly, monthly, quarterly, or annually, depending on the amount to be withheld.
Unemployment Insurance Reports: Due quarterly by April 30, July 31, October 31, and January 31.
Tax Credits and Incentives
Georgia offers several tax credits and incentives for small businesses, including:
Quality Jobs Tax Credit: This ranges from $2,500 to $5,000 per qualifying job (per year for five years) that pays at least 110% of the county’s average wage.
Investment Tax Credit: This is a 1% to 8% credit for certain investments by manufacturing and telecommunications companies.
Child Care Tax Credit: 100% of the cost of purchase or construction of a state-licensed facility or 75% of the direct costs to provide or sponsor childcare at a state-licensed facility.
Job Tax Credit: Ranges from $1,250 to $4,000 per year for five years for every new job created. In certain areas, the credit can also lower your payroll withholding obligations.
Research and Development Tax Credit: 10% of qualified expenditures (including wages, supplies, and contract research costs) less a base amount.
Check out our article on Georgia tax incentives for more information.
Georgia’s business tax breakdown by business type
Business taxes can get complicated, so below, we’ve included a chart that breaks down which taxes different business structures usually pay.
Keep in mind that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
Business type | Individual income tax | Corporate income tax | Net worth tax | PTE tax | Sales and use tax | Withholding tax | Unemployment tax | Business personal property tax | Nonresident withholding | Federal income taxes |
C corporation | No | Yes | Yes, if net work exceeds $100,000 | No | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | No | Yes |
S corporation | Yes (pass-through), if not making the PTE election | Yes | Yes, if net work exceeds $100,000 | Yes, if elect | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | Yes | Yes (pass-through) |
LLC | Yes (pass-through), if not making the PTE election | Yes | No | Yes, depending on structure and if elect | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | Yes | Yes (pass-through) |
Partnership | Yes (pass-through), if not making the PTE election | No | No | Yes, if elect | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | Yes | Yes (pass-through) |
Sole proprietorship | Yes (pass-through) | No | No | No | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | No | Yes, by way of individual income tax |
File your Georgia small business taxes with Gusto
As a business owner, your time and energy are valuable, finite resources. Gusto can save you time and give you peace of mind. Our easy-to-use software automatically files all your payroll taxes each time you run payroll—freeing up your bandwidth for the work that matters most.
Learn how Gusto can simplify the operations of your small business by creating an account today.
Georgia Small Business Taxes: The Employer’s 2024 Guide
Georgia offers a vibrant environment for business, with over 1.2 million small businesses employing about 43% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Georgia is crucial. This guide provides an overview of the various taxes small businesses in Georgia must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Georgia
Business owners in Georgia may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
Corporate Income Tax
Applicable Entities: Corporations, partnerships, LLCs
Tax Rate: 5.39%
Filing Requirements: File Form 600 by the 15th day of the fourth month after the tax year ends for C corporations. File Form 600S by the 15th day of the third month after the tax year ends for S corporations. File Form 700 by the 15th day of the third month after the tax year ends for partnerships.
Estimated Payments: Payments are due quarterly on April 15, June 15, September 15, and December 15 of the tax year.
Net Worth Tax
Applicable Entities: Corporations with a net worth over $100,000
Tax Rate: Graduated, starting at $125, up to a maximum of $5,000 for net worth in excess of $22 million
Filing Requirements: File Form 600 by the 15th day of the fourth month after the tax year ends for C corporations. File Form 600S by the 15th day of the third month after the tax year ends for S corporations.
Pass-Through Entity (PTE) Tax
Applicable Entities: S corporations, partnerships
Tax Rate: 5.39%
Filing Requirements: Check the election box and complete the applicable schedule on Form 600S for an S corporation or on Form 700 for a partnership.
Estimated Payments: Payments are due quarterly on April 15, June 15, September 15, and December 15 of the tax year.
Sales and Use Tax
Applicable Activities: Retail sales, certain services
Tax Rate: 4% (local rates may also apply)
Filing Requirements: File Form ST-3 monthly, quarterly, or annually based on sales volume.
Estimated Payments: If your company’s tax liability in the previous calendar year exceeded $60,000, excluding local sales taxes, a 50% payment for the tax period is due by the 20th day of the period.
Withholding Tax
Applicable Entities: Employers with employees
Tax Rate: Varies based on Employee’s Withholding Allowance Certificate (Form G-4)
Filing Requirements: File Form G-7 semi-weekly, monthly, quarterly, or annually, depending on the amount to be withheld.
Unemployment Insurance Tax
Applicable Entities: Employers with a quarterly payroll of $1,500 or at least one worker in 20 different calendar weeks during a calendar year
Tax Rate: Varies based on business’s experience rating
Wage Base: $9,500 per employee per year
Filing Requirements: File quarterly reports Form DOL-4N by April 30, July 31, October 31, and January 31.
Business Personal Property Tax
Applicable Entities: Businesses using personal property
Tax Rate: Based on property type and value
Filing Requirements: Report annually to the county assessor by April 1.
Nonresident Withholding Tax
Applicable Entities: Pass-through entities with nonresident members
Tax Rate: 4% on distributive share income
Filing Requirements: File Form G-7NRW by the 15th day of the fourth month following the close of the tax year.
How to File and Pay Georgia Business Taxes
Business taxes in Georgia can be filed and paid through various methods.
Online Filing and Payment: Use the Georgia Tax Center for electronic submissions and payments.
Mail: The mailing address depends on the type of form and payment.
Important Deadlines
Keep track of these key dates to avoid penalties:
Corporate Income Tax Returns: Due by the 15th day of the fourth month after the tax year ends for C corps. Due by the 15th day of the third month after the tax year ends for S corporations and partnerships.
Estimated Tax Payments: Due quarterly on April 15, June 15, September 15, and December 15 of the tax year.
Net Worth Tax Returns: Due by the 15th day of the fourth month after the tax year ends for C corporations. Due by the 15th day of the third month after the tax year ends for S corporations.
Sales and Use Tax Returns: Monthly, quarterly, or annual filing based on sales volume.
Withholding Tax Returns: Due semi-weekly, monthly, quarterly, or annually, depending on the amount to be withheld.
Unemployment Insurance Reports: Due quarterly by April 30, July 31, October 31, and January 31.
Tax Credits and Incentives
Georgia offers several tax credits and incentives for small businesses, including:
Quality Jobs Tax Credit: This ranges from $2,500 to $5,000 per qualifying job (per year for five years) that pays at least 110% of the county’s average wage.
Investment Tax Credit: This is a 1% to 8% credit for certain investments by manufacturing and telecommunications companies.
Child Care Tax Credit: 100% of the cost of purchase or construction of a state-licensed facility or 75% of the direct costs to provide or sponsor childcare at a state-licensed facility.
Job Tax Credit: Ranges from $1,250 to $4,000 per year for five years for every new job created. In certain areas, the credit can also lower your payroll withholding obligations.
Research and Development Tax Credit: 10% of qualified expenditures (including wages, supplies, and contract research costs) less a base amount.
Check out our article on Georgia tax incentives for more information.
Georgia’s business tax breakdown by business type
Business taxes can get complicated, so below, we’ve included a chart that breaks down which taxes different business structures usually pay.
Keep in mind that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
Business type | Individual income tax | Corporate income tax | Net worth tax | PTE tax | Sales and use tax | Withholding tax | Unemployment tax | Business personal property tax | Nonresident withholding | Federal income taxes |
C corporation | No | Yes | Yes, if net work exceeds $100,000 | No | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | No | Yes |
S corporation | Yes (pass-through), if not making the PTE election | Yes | Yes, if net work exceeds $100,000 | Yes, if elect | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | Yes | Yes (pass-through) |
LLC | Yes (pass-through), if not making the PTE election | Yes | No | Yes, depending on structure and if elect | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | Yes | Yes (pass-through) |
Partnership | Yes (pass-through), if not making the PTE election | No | No | Yes, if elect | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | Yes | Yes (pass-through) |
Sole proprietorship | Yes (pass-through) | No | No | No | Yes, if applicable | Yes, if you hire employees | Yes, if you’re a covered employer | Yes, if applicable | No | Yes, by way of individual income tax |
File your Georgia small business taxes with Gusto
As a business owner, your time and energy are valuable, finite resources. Gusto can save you time and give you peace of mind. Our easy-to-use software automatically files all your payroll taxes each time you run payroll—freeing up your bandwidth for the work that matters most.
Learn how Gusto can simplify the operations of your small business by creating an account today.
