Tax Code of Georgia: A Complete Guide for GA Taxpayers

The tax code of Georgia is the set of laws that Georgia-based businesses and individuals must follow when paying taxes and filing their tax returns with the state government. Learn more here.

What Is the Tax Code of Georgia?

 

A tax code can be defined as a government document that gives details about the rules that individuals and businesses must follow in remitting a certain percentage of their total incomes to the state. 

The state of Georgia is not excluded from this as residents of Georgia are also subjected to these tax codes, and a violation of this code can result in serious consequences for the taxpayer. 

What Do Georgia Tax Codes Entail?

 

Georgia’s tax code is the principal source of tax law and has been amended several times. Although the term ‘tax code’ suggests an independent body of laws, the Georgia tax code is really just a section of the Official Code of Georgia Annotated (OCGA), which is the full collection of laws enacted in the state of Georgia.

The body of laws that make up the Georgia tax code is categorized under Title 48 of the OCGA. This is further divided into 18 chapters, which cover laws ranging from income taxes to estate tax.

 

Georgia Taxation Levels

 

According to Georgia law, taxes are collected at both the local and state levels. Important taxes such as value-added taxes, income taxes, and corporate taxes are collected on the state level. Property taxes are mostly collected at the local level.

    What Do Georgia Tax Codes Entail

    Overview of Georgia Tax Laws

     

    Even though no one enjoys paying taxes, they can never be avoided. The good thing about state taxes is that they help the government fund public services, including public schools, public roads, fire departments, hospitals, and any other public amenities that we depend on daily.

    Under Georgia tax laws, any individual earning a yearly income of more than $7,000 pays a 6% income tax rate. In addition to this, local municipalities and counties are free to levy an additional tax of 1% on all taxable incomes.

    When it comes to Georgia tax laws, we have Georgia personal income tax laws and Georgia consumer tax laws. The two are further explained below.

      Overview of Georgia Tax Laws

      Georgia Personal Income Tax Laws

      These types of tax laws are imposed on individual incomes. Every state in the United States is permitted to determine its own policies regarding income taxes. Some states have these policies in place while others don’t; in those cases, the taxpayers are only responsible for paying federal income taxes. However, Georgia is not one of these states.

      Moreover, not all states levy personal income taxes; those that do not have higher consumer taxes. Georgia’s personal income tax laws do offer a lower tax rate for those individuals earning a low income. For instance: on the first $750 of an individual’s income, only 1% is taxed. Those individuals earning over $7,000 are taxed 6% of their total income.

       

      Georgia Consumer Tax Laws

      Georgia’s sales taxes are collected when certain purchases are made, and as mentioned earlier, they are used to pay for public services. The State of Georgia collects taxes from non-essential items such as liquor, cigarettes, gasoline, and many more. It aims at limiting the consumption of such commodities with the benefit of funding government programs. The state’s consumer tax laws levy a rate of 4% on all retail sales with lower taxes on gasoline and cigarettes.

      These are just a few of the many types of state taxes in Georgia, and business owners face additional tax burdens. For more in-depth information on how Georgia’s tax laws may apply to your unique situation, contact an Atlanta tax attorney at Spizzirri Law, L.L.C. to request a free initial consultation.

      Georgia Tax Code: Who Needs a State Tax ID?

       

      Your state tax identification number is your state tax ID required to pay state taxes, open bank accounts, hire employees, and apply for any permits and licenses. Most states, Georgia included, require businesses to acquire a tax ID, also known as an employer identification number or state taxpayer identification number. So, if you are starting a business, you may be required to apply for one once you register the business.

      This is a must, especially to businesses hoping to pay employees, file tax returns, work with certain organizations, operate as a corporation, or withhold taxes on income. 

      Applying for the tax ID is free. Online registration is available through the Georgia Tax Center. This online portal is self-service, but in many cases, it may be a good idea to consult a tax attorney to ensure that the proper steps are taken. 

        Georgia Tax Code Who Needs a State Tax ID

        Is There City Tax In Georgia?

         

        City tax is the assessment by a state, municipality, or county to fund various public services ranging from garbage collection, police and fire services, and sewer maintenance. Georgia has city taxes which come in many forms, from payroll taxes, property taxes, and licensing fees. These taxes vary from one jurisdiction to the next.

        Like other states, Georgia has been given the right to verify and impose taxes on its residents. City taxes also fund other government services such as fire and police services, road services, and other projects that will benefit the community.

        Unlike federal taxes, one of the advantages of city taxes is that they are apparent at a community level.

        Tax Rate Georgia

         

        Georgia has six types of flat tax rates: value-added tax, excise tax, personal income tax, corporate profit tax, property tax, and import tax. Valued added tax is levied at a rate of 18%. Nearly all goods and services are subjected to VAT except a few goods and services such as education, exports, and medical care. When it comes to personal income tax, unless other rates such as interests and dividends apply, the income of an individual is levied at a flat rate of 20%.

        Corporate taxes, on the other hand, are collected at a flat rate of 15%. Non-distributed profits are typically exempted from taxation as few deductions are accessible. Excise taxes are for a few selected goods such as luxury and goods damaging the environment like gasoline. Property tax rates are levied up to 1%. Any income obtained from renting out residential spaces for only residential purposes and not making any deductions shall be taxed 5%.

          Tax Rate Georgia

          Reach Out to a GA Tax Lawyer for Legal Advice and Advocacy

           

          Taxes can be quite complicated to understand. Businesses and individuals pay taxes but do not always know how and why the Georgia law applies either to them or their businesses.

          If you have trouble navigating Georgia’s tax code, Spizzirri Law, L.L.C. is here to help you out. Based in Atlanta, our law firm is well-versed in this area of taxation. Get started by contacting us today!

          Let a proactive corporate tax lawyer provide a reliable opinion

          A mistaken assumption in your company’s tax strategy can destroy the value of a complex transaction. Before you move forward on your development strategy or engage in a tax dispute with the IRS, let Spizzirri Law Offices Company Limited provide an unbiased opinion of your tax exposure.

          To schedule a consultation, call (404) 999-2161 or contact our Atlanta office online.

          Contact Us

           

          If you are spending too much of your company’s budget on legal fees, or you are just tired of the reactive approach to business law, Paul M. Spizzirri is prepared to help. Schedule a consultation to learn how my approach can produce value for your business. Call (404) 999-2161 or contact my Atlanta office online.