Georgia Corporate Tax Obligations for C Corps and S Corps
Georgia corporations pay a 5.19% corporate income tax, a net worth tax, and federal taxes. Learn what C Corps and S Corps owe, which forms to file, and when returns are due.
Bizee Editorial Staff
Editorial Team
Georgia tax quick facts
Filing fee: Georgia corporate income and net worth tax — no separate filing fee; returns filed via Georgia Tax Center
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State agency: Georgia Department of Revenue (dor.georgia.gov)
Annual report due: C Corps: 15th day of the 4th month after tax year begins (net worth return); S Corps: 15th day of the 3rd month after tax year begins (net worth return)
State tax rate: 5.19% flat corporate income tax rate (effective for tax years beginning on or after January 1, 2025)
Georgia corporate tax overview
Georgia corporations face 3 main state-level tax obligations: a corporate income tax at a flat 5.19% rate, a net worth tax assessed on the corporation's taxable net worth, and sales and use tax if the business sells taxable goods or services. Federal income tax and payroll taxes apply on top of those. The net worth tax is the one that catches most new Georgia corporations off guard — it's due on a separate schedule from the income tax return.
Corporate income tax: 5.19% flat rate on Georgia taxable net income
Net worth tax: assessed on the corporation's taxable net worth, filed on the same return package as the income tax
Sales and use tax: applies if the business sells taxable goods or services in Georgia
Federal income tax: C Corps pay at the federal corporate rate; S Corp income passes through to shareholders
Payroll taxes: required if the corporation has employees
Georgia corporate income tax
Georgia taxes C corporations at a flat 5.19% on Georgia taxable net income — a rate that dropped from 5.39% for tax years beginning on or after January 1, 2025, subject to state revenue triggers. Any corporation that owns property in Georgia, does business in Georgia, or receives income from Georgia sources is subject to this tax.
The return is filed on Form 600 (Georgia Corporation Tax Return) through the Georgia Tax Center or an approved software provider. If your corporation earns income both inside and outside Georgia, only the portion reasonably attributable to Georgia activity is taxable — Georgia uses apportionment rules to figure out that share.
Georgia net worth tax
Georgia also levies a net worth tax on corporations doing business in the state — this is separate from the income tax and is sometimes called a franchise tax in other states. A Georgia-incorporated corporation pays net worth tax on 100% of its taxable net worth. A foreign corporation doing business in Georgia uses an apportionment ratio based on Georgia property and gross receipts.
The net worth tax return is due on the 15th day of the 4th month after the beginning of the tax year for C corporations, and the 15th day of the 3rd month for S corporations. Corporations that first become subject to the tax for an initial period of less than 6 months owe 50% of the annual net worth tax for that period. The net worth return is filed as part of the same Form 600 package.
S Corp treatment in Georgia
Georgia treats S corporations as pass-through entities for income tax purposes, so the 5.19% corporate income tax does not apply at the entity level. Instead, shareholders report their share of the S Corp's income on their personal Georgia income tax returns. The S Corp still has to file a Georgia return, and it's still subject to the net worth tax.
Georgia follows federal treatment for Qualified Subchapter S Subsidiaries (QSSS). If you're unsure whether your federal S Corp election is recognized for Georgia purposes, a tax professional can help you figure out your filing status before the return is due.
Georgia sales and use tax
Georgia imposes a sales tax on the retail sale of taxable goods and certain services. The statewide base rate is 4%, but local jurisdictions add their own rates on top — so the total rate your business collects depends on where the sale takes place. Use tax applies when a business buys taxable goods outside Georgia for use inside the state without paying sales tax at the time of purchase.
If your corporation sells taxable goods or services in Georgia, you'll need to register with the Georgia Department of Revenue and file sales tax returns on the schedule the Department assigns. A tax professional can help you figure out which of your products or services are taxable under Georgia law.
Federal tax obligations
C corporations pay federal corporate income tax on their net income at the current federal flat rate of 21%. S corporations don't pay federal income tax at the entity level — income passes through to shareholders, who report it on their personal federal returns. Both entity types may need to pay estimated taxes quarterly if they expect to owe $500 or more in federal tax for the year.
Federal tax rules for corporations are detailed enough that most Georgia corporations work with an accountant or tax preparer to make sure they're filing correctly. The IRS website at irs.gov is the authoritative source for federal corporate tax forms and deadlines.
Employee and employer taxes
If your Georgia corporation has employees, you'll need to withhold and remit Georgia state income tax from employee wages, along with federal payroll taxes — Social Security, Medicare, and federal unemployment (FUTA). Georgia employers also pay state unemployment insurance (SUTA) through the Georgia Department of Labor.
S Corp shareholders who work in the business are treated as employees for payroll tax purposes and must receive a reasonable salary — that salary is subject to payroll taxes before any remaining profit passes through. Getting the salary amount wrong is one of the more common mistakes S Corp owners make, and the IRS does look at it.
FAQ
Georgia's corporate income tax rate is 5.19% — a flat rate applied to a corporation's Georgia taxable net income. This rate took effect for tax years beginning on or after January 1, 2025, reduced from the prior rate of 5.39%. The rate applies to C corporations and any entity taxed as a corporation for Georgia purposes.
It's a separate state tax on a corporation's taxable net worth — not its income. Georgia-incorporated corporations pay on 100% of their taxable net worth. Foreign corporations doing business in Georgia use an apportionment ratio. The net worth tax return is filed as part of the Form 600 package and is due on the 15th day of the 4th month after the tax year begins for C corporations, and the 15th day of the 3rd month for S corporations.
Generally, no. Georgia treats S corporations as pass-through entities, so the 5.19% corporate income tax doesn't apply at the entity level. Shareholders report their share of the S Corp's income on their personal Georgia income tax returns instead. The S Corp still has to file a Georgia return and is still subject to the Georgia net worth tax.
Georgia corporations file Form 600 (Georgia Corporation Tax Return) to report both corporate income tax and net worth tax. The return can be filed electronically through the Georgia Tax Center at dor.georgia.gov or through an approved software provider. Corporations doing business in Georgia for the first time must file an initial net worth tax return by the 15th day of the 3rd calendar month after they begin doing business in the state.
Yes. Georgia has a statewide sales tax base rate of 4%, with local jurisdictions adding their own rates on top. If your corporation sells taxable goods or services in Georgia, you'll need to register with the Georgia Department of Revenue and collect and remit sales tax. Use tax applies when taxable goods are purchased outside Georgia for use inside the state without paying sales tax at purchase.
Yes. Georgia corporations that expect to owe state income tax generally need to make estimated tax payments throughout the year. At the federal level, corporations that expect to owe $500 or more in federal tax for the year are required to pay estimated taxes quarterly. A tax professional can help you figure out the right payment schedule for both Georgia and federal obligations.
Any corporation that owns property in Georgia, does business in Georgia, or receives income from Georgia sources has to file a Georgia corporate income tax return using Form 600. That includes both domestic corporations formed in Georgia and foreign corporations doing business in the state. If your corporation earns income both inside and outside Georgia, Georgia taxes only the portion attributable to Georgia activity under its apportionment rules.
