Frequently Asked Questions

What is the corporate income tax rate in Georgia and how does it apply to corporations?

In the state of Georgia, corporations are required to pay a corporate income tax rate of 6 percent. This tax applies to all corporations operating within the state, and it is calculated based on the corporation's taxable income. For instance, if a corporation has a taxable income of $1 million, it would owe the state of Georgia $60,000 in state income taxes. In addition to the corporate income tax, corporations in Georgia are also required to pay a net worth tax. The amount of this tax is determined based on the corporation's net worth, as outlined in the IT 611 tax table. It's important to note that these tax requirements differ for limited liability corporations (LLCs), partnerships, and sole proprietorships in Georgia. These types of businesses are considered pass-through entities, meaning the taxes are passed to the owner or owners of the business. The owners then account for the business income on their personal tax filings and pay taxes accordingly. To pay taxes in Georgia, businesses must obtain a State Tax Identification Number (STIN), which can be applied for online or in person at a Georgia Tax Center. Furthermore, businesses are required to make quarterly estimated tax payments to the IRS, using Form 602ES in Georgia.