Georgia Business Taxes at a Glance
Georgia moved to a flat individual income tax and has lowered the rate several times since, with another reduction enacted in 2026. Businesses deal with both a corporate income tax and a net worth tax, layered local sales taxes with their own acronyms, and in Atlanta's growing film industry, valuable but detailed production credits. BOMCAS helps Georgia individuals and businesses keep up with these rules.
Individual Income Tax
Georgia taxes residents on all income and nonresidents on Georgia-source income at one flat rate. Legislation in 2025 and again in 2026 reduced the rate, with the 2026 change applied retroactively to the start of the year, so withholding tables and estimated payments may need updating. Georgia starts from federal adjusted gross income with its own adjustments, and it decides each year how closely to follow recent federal changes.
Georgia also has a retirement income exclusion for taxpayers who are 62 or older, or permanently disabled, that covers pensions, interest, dividends, and some other income up to a limit, and Social Security benefits are not taxed. Many retirees moving to Georgia benefit. We prepare Georgia returns, apply the exclusion correctly, and plan estimates.
Corporate Income Tax and Net Worth Tax
Corporations doing business in Georgia pay corporate income tax on apportioned income, generally using a single sales factor. They also pay a net worth tax, which is a tax based on the corporation's capital stock, paid-in surplus, and retained earnings, on a graduated scale with small amounts at the low end. Both are reported on the same return. S corporations owe the net worth tax as well, even though income passes through to shareholders.
Partnerships and S corporations must withhold on nonresident owners or obtain agreements from them, and Georgia offers an elective pass-through entity tax. We prepare corporate and entity returns, calculate the net worth tax, and evaluate the PTE election.
Sales Tax With Local Layers
Georgia's state sales tax rate is fairly low, but local taxes add significantly to it. Local options include:
- LOST, the local option sales tax
- SPLOST, a special purpose tax for capital projects
- ESPLOST, a special purpose tax for school projects
- TSPLOST, a transportation special purpose tax
- MARTA tax in parts of metro Atlanta
These combine differently in each county, and they can start or end when voters approve or projects finish. Businesses must use the rate where goods are delivered. Food for home consumption is exempt from the state tax but generally subject to local taxes. We register businesses, track rates by jurisdiction, and file returns.
Hotel and Lodging Taxes
Georgia lodging is subject to sales tax, local hotel-motel excise taxes, and a state per-night hotel-motel fee. Short-term rental hosts and hotels may need to collect all of them. Some platforms collect for hosts, but local excise taxes can require separate filing. We help lodging businesses register and file.
Film and Entertainment Production
Georgia's entertainment production tax credit has made the state a major filming location. Production companies earn credits based on qualified Georgia spending, and the credits can be used or transferred under the state's rules. The program requires certification, detailed cost records, and in many cases an audit before credits can be claimed. Vendors, crew companies, and production service businesses also need accurate books.
We help production companies and their vendors with cost tracking, payroll records, and bookkeeping that supports the credit process, working alongside the production's other advisers.
Annual Registration and Local Occupation Taxes
Georgia corporations and LLCs file an annual registration with the Secretary of State, generally between January 1 and April 1. Missing it can lead to administrative dissolution. Cities and counties also require occupation tax certificates, often based on the number of employees or gross receipts. We add these to each client's compliance calendar.
Payroll and Withholding Table Changes
Georgia employers withhold state income tax and report unemployment insurance to the Georgia Department of Labor. Rate changes in recent years mean withholding tables have changed more often than usual. Employers with employees in neighboring states need to withhold correctly for each. We handle payroll runs and state reports and tie both back to the accounting records.
Film, Ports, Farms, and Fintech
- Film and entertainment: production cost accounting and credit documentation
- Logistics and distribution: Savannah port and Atlanta hub operations, inventory, and multistate apportionment
- Agriculture: poultry, peanuts, and timber, with farm reporting and agricultural exemptions
- Technology and fintech: payment processing and software sales tax questions
- Real estate and construction: job costing and local sales tax on materials
Retiring or Relocating to Georgia
Georgia's retirement income exclusion makes it a common destination for retirees, and Atlanta draws workers from across the country. In the year of a move, the Georgia part-year return generally includes only income received while you were a resident, so pension, IRA, and investment income must be split by date. We prepare the Georgia return and the final return in your former state together, so income is reported to the right state once.
Books Set Up for County Rates and Net Worth
Georgia bookkeeping should track sales by county for local taxes, maintain equity accounts for the net worth tax, and track production costs separately for film credits. We set up the chart of accounts and month-end close to give these figures.
Talk to BOMCAS About Georgia
Production companies, Savannah and Atlanta logistics businesses, and families planning retirement in Georgia can contact BOMCAS to review net worth tax, local sales tax, or the 2026 rate change. We work remotely. Georgia city and service pages will be published under this section next. See the BOMCAS home page and our United States services for more. This page is general information, not advice for your situation.
Talk to BOMCAS About Your Georgia Taxes
Have a question about your Georgia filings, payroll or bookkeeping? Contact BOMCAS or use the contact form below, and we will get back to you as soon as possible. You can also browse all United States services.