Georgia Corporation Taxes
| Item | Details |
|---|---|
| Corporate income tax rate | 5.19% |
| Franchise tax | None |
| Gross receipts tax | None |
| State sales tax | 4% (plus local add-ons) |
Georgia eliminated its separate corporate franchise tax. The 5.19% rate represents a recent reduction and is current as of March 31, 2026.
Tax Planning Considerations
You should consult with a Georgia tax professional to understand how your specific business structure and income sources affect your tax obligation. The flat rate means your effective tax burden increases with profitability, but the rate itself does not change based on income level.
Net Worth Tax for Corporations
Georgia corporations may owe a separate net worth tax in addition to the 5.19% corporate income tax. Corporations with net worth of $100,000 or less are exempt from the tax but must still file a return. The maximum net worth tax is $5,000 for corporations with net worth exceeding $22 million.
Who Must File
Every Georgia corporation must file a net worth tax return, even if your net worth falls below the $100,000 threshold and you owe no tax. Filing is required under O.C.G.A. Title 48, Chapter 7 and enforced by the Georgia Department of Revenue. If you operate as an S corporation, the net worth tax still applies to the corporation itself, though income is taxed to shareholders at the individual level.
Calculating Your Net Worth Tax
Your net worth tax obligation is calculated on a graduated scale based on your corporation's total net worth as of the last day of the taxable year. The tax is separate from Georgia's corporate income tax—you pay both taxes if your corporation is subject to them. The 5.19% income tax applies to taxable net income, while net worth tax applies to your year-end balance sheet equity.
Filing and Payment
You report net worth tax on your Georgia corporate income tax return. The Georgia Department of Revenue processes both filings together. Payment is due with your return, and estimated tax payments may be required if you expect significant tax liability.
For specific filing instructions, deadlines, and payment options, visit the Georgia Department of Revenue's corporate income and net worth tax page at https://dor.georgia.gov/taxes/corporate-income-and-net-worth-tax or contact the department directly.
S Corporation Recognition and Taxation
Georgia recognizes S corporation status for state tax purposes under O.C.G.A. Title 48, Chapter 7. When you elect S corporation treatment, Georgia taxes the shareholders on their pro-rata share of income rather than taxing the corporation itself. This election can significantly reduce your overall tax burden compared to standard C corporation taxation.
State-Level S Corporation Recognition
Georgia explicitly recognizes S corporation status for state income tax purposes. You can elect S corporation treatment for a Georgia corporation, and once approved, the corporation itself pays no Georgia income tax on its net income. Instead, you and other shareholders report your proportionate share of the corporation's income on your individual Georgia tax returns.
The Georgia Department of Revenue confirms that if S-corporation status is recognized for Georgia purposes, the shareholders pay the tax rather than the corporation. This pass-through structure allows you to avoid double taxation at the state level.
How S Corporation Taxation Works
If your corporation elects S corporation status, the corporation files an informational return (Form 500-S) with the Georgia Department of Revenue. Each shareholder receives a Schedule K-1 showing their allocable share of income, losses, deductions, and credits. Shareholders then report this income on their individual Georgia returns and pay the 5.19% state income tax on their share.
The corporation itself pays no Georgia income tax. This differs from C corporation treatment, where the corporation pays 5.19% on net income, and shareholders pay tax again on dividends.
Federal and State Election Coordination
You elect S corporation status at the federal level on IRS Form 2553 within the required federal timeframe. Georgia will recognize your federal S election automatically for state tax purposes. You do not need to file a separate Georgia S election form—the federal election controls both federal and Georgia taxation.
Net Worth Tax for S Corporations
Georgia corporations—including those taxed as S corporations—may owe net worth tax in addition to income tax. Corporations with net worth of $100,000 or less are not subject to the net worth tax but must still file a return. The maximum net worth tax is $5,000 for corporations with net worth exceeding $22 million.
Net worth tax is calculated on a sliding scale based on your corporation's net worth. You should review your balance sheet annually to determine whether you owe this tax, even if your income tax liability is zero.
Formation and Filing Requirements
You form an S corporation in Georgia by filing Articles of Incorporation with the Georgia Secretary of State under O.C.G.A. § 14-2-202. The filing fee is $110.00. Georgia requires a minimum of one director, and directors do not need to be Georgia residents.
After formation, you must file an annual registration between January 1 and April 1 each year. The annual registration fee is $60.00. You must also elect S corporation status with the IRS on Form 2553 within the required federal timeframe; Georgia will recognize your federal S election automatically.
Estimated Tax Payments
If you operate as an S corporation in Georgia, you must make estimated tax payments on behalf of the corporation's shareholders. Estimated tax deadlines are April 15, June 15, September 15, and January 15. These payments cover both Georgia income tax and any net worth tax liability.
Consult with a Georgia tax professional to determine the correct estimated payment amounts based on your projected income and net worth.
Comparison: S Corporation vs. C Corporation Taxation
| Feature | S Corporation | C Corporation |
|---|---|---|
| State Income Tax | Shareholders taxed at 5.19% on pro-rata income | Corporation taxed at 5.19% on net income |
| Double Taxation | Avoided at state level | Applies (corporate + shareholder level) |
| Net Worth Tax | May apply based on corporate net worth | May apply based on corporate net worth |
| Pass-Through Status | Yes | No |
| Self-Employment Tax | Applies to shareholder distributions | N/A |
Self-Employment Tax Considerations
Georgia recognizes self-employment tax obligations for S corporation shareholders. Unlike federal treatment, where reasonable salaries reduce self-employment tax exposure, Georgia applies self-employment tax to shareholder distributions. You should work with a tax professional to structure your compensation and distributions efficiently.
Tax Authority Resources
The Georgia Department of Revenue administers corporate income and net worth tax. You can access tax information and file returns through the Georgia Tax Center at https://gtc.dor.ga.gov. For detailed guidance on corporate income and net worth tax, visit https://dor.georgia.gov/taxes/corporate-income-and-net-worth-tax.
Contact the Georgia Department of Revenue at https://dor.georgia.gov/ with specific questions about S corporation taxation or net worth tax calculations.
C Corporation Taxation
Georgia imposes a flat 5.19% corporate income tax on Georgia taxable net income under O.C.G.A. Title 48, Chapter 7. Corporations may also owe net worth tax, though entities with net worth of $100,000 or less are exempt from the tax (but must still file a return). The maximum net worth tax is $5,000 for corporations with net worth exceeding $22 million.
Corporate Income Tax Rate
Georgia's corporate income tax rate is a flat 5.19% on Georgia taxable net income. This rate applies to all C corporations doing business in Georgia, whether formed domestically or qualified as foreign corporations. The rate was reduced to 5.19% as of March 31, 2026, and applies to tax years beginning on or after that date.
You can find detailed corporate income tax guidance on the Georgia Department of Revenue's corporate income and net worth tax page at https://dor.georgia.gov/taxes/corporate-income-and-net-worth-tax.
Double Taxation Structure
C corporations face potential double taxation: the corporation pays 5.19% on income, and shareholders pay personal income tax on dividends. This structure may be advantageous if you plan to reinvest profits in the business rather than distribute them, or if your shareholders are tax-exempt entities.
You cannot avoid the 5.19% corporate-level tax by retaining earnings in the corporation—the tax applies to all Georgia taxable net income regardless of distribution decisions.
Net Worth Tax
Georgia corporations may owe an annual net worth tax in addition to corporate income tax. Corporations with net worth of $100,000 or less are not subject to the net worth tax but must still file a return to claim the exemption.
The net worth tax is calculated on a graduated scale, with a maximum tax of $5,000 for corporations with net worth exceeding $22 million. You must file a corporate income and net worth tax return even if your corporation has no Georgia taxable income or owes no net worth tax.
S Corporation Election
Georgia recognizes S corporation status for state tax purposes under O.C.G.A. Title 48, Chapter 7. If you elect S corporation treatment, the shareholders pay the Georgia income tax on their pro-rata share of income rather than the corporation paying tax at the entity level.
An S corporation election is made at the federal level on Form 2553 (IRS) and is automatically recognized by Georgia. You should verify that your business structure qualifies for S corporation treatment before making the election.
Estimated Tax Payments
Georgia requires estimated tax payments for corporations with expected tax liability. Estimated tax payments are due on April 15, June 15, September 15, and January 15 of the following year.
You should calculate your estimated tax liability based on your projected Georgia taxable net income and make quarterly payments to avoid penalties and interest. The Georgia Department of Revenue provides estimated tax worksheets and payment options through the Georgia Tax Center at https://gtc.dor.ga.gov.
Tax Filing and Payment
Georgia corporations file their corporate income and net worth tax return with the Georgia Department of Revenue. The return must be filed by the 15th day of the fourth month following the close of your tax year (typically April 15 for calendar-year corporations).
You can file and pay taxes electronically through the Georgia Tax Center at https://gtc.dor.ga.gov or by mail. The Georgia Department of Revenue's main website is https://dor.georgia.gov/.
Franchise Tax Status
Georgia does not impose a separate corporate franchise tax. However, Georgia corporations may owe a net worth tax based on their equity value, governed under O.C.G.A. Title 48, Chapter 7.
Net Worth Tax for Georgia Corporations
Georgia corporations with net worth exceeding $100,000 must file a net worth tax return, though those at or below $100,000 are exempt from the tax itself. The maximum net worth tax is $5,000 for corporations with net worth above $22 million. This tax applies only to corporations, not to LLCs or pass-through entities.
You can find detailed information on Georgia's corporate income and net worth tax at the Georgia Department of Revenue's corporate income and net worth tax page.
Corporate Income Tax Instead
Georgia imposes a flat 5.19% corporate income tax on Georgia taxable net income in place of a franchise tax. This rate applies to C corporations that do not elect S corporation status. If your corporation elects S corporation treatment (recognized at the Georgia state level), the shareholders pay the income tax rather than the corporation.
Pass-through entities like LLCs and partnerships are not subject to entity-level income tax; instead, income passes through to owners and is taxed at individual rates under O.C.G.A. Title 48, Chapter 7.
Tax Burden Comparison
The absence of a franchise tax in Georgia reduces your overall state tax burden compared to states that impose both income and franchise taxes. Your primary state tax obligation is the 5.19% corporate income tax (plus net worth tax if applicable). This simplification makes Georgia a cost-effective state for corporate formation.
Estimated Tax Payments
Georgia corporations must make quarterly estimated tax payments based on their projected Georgia taxable net income. The state imposes a flat 5.19% corporate income tax on Georgia taxable net income under O.C.G.A. Title 48, Chapter 7.
Payment Deadlines
You must submit estimated tax payments on four dates each calendar year: April 15, June 15, September 15, and January 15. These deadlines align with federal estimated tax payment dates and apply to corporations expecting to owe $500 or more in Georgia income tax for the year.
Tax Rate and Calculation
Georgia's corporate income tax rate is a flat 5.19% applied to your Georgia taxable net income. This rate applies to all C corporations doing business in Georgia, regardless of entity size or income level.
If your corporation has elected S corporation status for Georgia purposes, the shareholders pay the income tax rather than the corporation itself—though the corporation may still have withholding obligations.
Net Worth Tax Considerations
In addition to income tax, Georgia corporations may owe a net worth tax. Corporations with net worth of $100,000 or less are exempt from the tax but must still file a return. The maximum net worth tax is $5,000 for corporations with net worth exceeding $22 million.
Underpayment Penalties
Underpayment penalties apply if your estimated payments fall short of required thresholds. You should calculate estimated payments based on your projected Georgia taxable net income for the year. Conservative projections are advisable to avoid penalties.
Filing and Payment Resources
Submit estimated tax payments and file your annual corporate return through the Georgia Department of Revenue at https://dor.georgia.gov/. You can access the Georgia Tax Center at https://gtc.dor.ga.gov for payment processing and account management.
For detailed guidance on corporate income and net worth tax obligations, visit https://dor.georgia.gov/taxes/corporate-income-and-net-worth-tax.
Annual Report and Tax Filing Deadlines
Georgia corporations file annual reports with the Secretary of State between January 1 and April 1 each year. Your corporation must also pay Georgia corporate income tax on net income at the flat rate of 5.19% under O.C.G.A. Title 48, Chapter 7. Corporations may also owe net worth tax depending on your net worth. Missing the annual registration deadline triggers a $25 late penalty and risks administrative dissolution.
Annual Registration Deadline
Your Georgia corporation must file an annual registration between January 1 and April 1 each year. This deadline applies to all domestic corporations, regardless of when you formed your business. The initial annual registration is due between January 1 and April 1 of the year following your incorporation.
You can file your annual registration online through the Georgia Secretary of State's eCorp system at https://ecorp.sos.ga.gov/. The annual registration fee is $60 total ($50 filing fee + $10 service charge).
Late Filing Penalties
If you miss the April 1 deadline, you will incur a $25 late penalty. If you do not file within 60 days after the Secretary of State sends notice, your corporation may face administrative dissolution. You can file your annual registration up to three calendar years in advance, which allows you to batch multiple years at once if you prefer.
Corporate Income Tax Deadline
Georgia imposes a flat 5.19% corporate income tax on your Georgia taxable net income under O.C.G.A. Title 48, Chapter 7. Your corporation must file a Georgia corporate income tax return and pay any tax owed by the federal income tax deadline, which is typically April 15 for calendar-year corporations.
If your corporation has elected S-corporation status for Georgia purposes, the shareholders pay the tax rather than the corporation. You should confirm your tax classification with the Georgia Department of Revenue at https://dor.georgia.gov/taxes/corporate-income-and-net-worth-tax.
Estimated Tax Payments
If you expect to owe more than $500 in Georgia income tax for the year, you must make estimated tax payments. Georgia estimated tax deadlines are **April 15, June