Georgia Income Tax

---
name: georgia-income-tax
description: "Personal income tax in the country of Georgia (Sakartvelo, GE, currency GEL; not the US state) for tax year 2026 under the Tax Code of Georgia. Covers residence (183 days in any 12 months), the flat 20% rate, the 5% rates for residential rent and for gains on a flat, house or car, the holding-period exemptions, the exemption for foreign-source income of residents, micro business status (0%, GEL 30,000, no staff) and small business status (1%, then 3% from the month gross income passes GEL 500,000, or GEL 700,000 for wine and agro tourism), final withholding on dividends and interest (5%), royalties, the annual return due before 1 April, the monthly small business return, current tax payments, fines and 0.05% a day penalty interest. Trigger on: Georgia income tax, 20% flat tax Georgia, small business status 1%, micro business Georgia, individual entrepreneur Georgia, rs.ge declaration. Out of scope: payroll runs (georgia-payroll), funded pension (georgia-social-contributions), VAT (geor"
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/georgia-income-tax"
  jurisdiction: "GE"
  tax_year: "2026"
  last_updated: "2026-10-31"
  reviewed_by: "Gvantsa Amiridze"
---

# Georgia (country): personal income tax for individuals and individual entrepreneurs (2026) v0.2

Georgia taxes individuals at one flat rate of 20%, with a 5% rate for some rent and gains and two special regimes for small traders. There are no progressive bands and no general personal allowance. Figures below are from the Tax Code of Georgia (Law No 3591 of 17 September 2010) as consolidated on matsne.gov.ge to the law of 15 October 2026 (publication 247), read in English and checked against the Georgian text. The tax year is the calendar year.

## Who this applies to

- **Resident individuals** pay income tax on their taxable income: total income for the calendar year less the deductions the Code allows (art. 79 a), 80(1)).
- **Residence.** A person is resident for the whole tax year if he or she actually stayed in Georgia for 183 days or more in any continuous 12-month period ending in that year, or was abroad in the Georgian public service (art. 34(2)). Any part of a day counts as a day (art. 34(5)). Days abroad for treatment, leisure, business trips or study count as days in Georgia. Days in Georgia as a diplomat, as staff of an international organisation, in transit, or for treatment or leisure do not (art. 34(3)-(4)). Status is set for each tax period, and days used in one year do not count again in the next (art. 34(8)).
- **High net worth individuals** may be given residence under rules of the Minister of Finance (art. 34(6)).
- **Non-residents** pay tax only on Georgian-source income (art. 79 b)). With a permanent establishment they are taxed on its net income. Without one, their income is taxed at source with no deductions (art. 80(2)-(3), 134).
- **Individual entrepreneurs** pay the 20% rate on business profit unless they hold micro business or small business status (art. 83-94), or a fixed tax status set by the Government (art. 95^1-95^6).
- Not here: running a payroll (see [georgia-payroll](georgia-payroll.md)); funded pension contributions (see [georgia-social-contributions](georgia-social-contributions.md)); VAT (see [georgia-vat](georgia-vat.md)); companies, which pay profit tax on distributions (see [ge-corporate-income-tax](ge-corporate-income-tax.md)).

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| Income tax on taxable income | 20% flat | 2026 | Tax Code art. 81(1), https://matsne.gov.ge/en/document/view/1043717?publication=247 |
| Residential rent to a person for living purposes, no deductions claimed | 5% of the rent | 2026 | art. 81(2), same URL |
| Gain on a flat or house with its land, or on a car | 5% | 2026 | art. 81(3), same URL |
| Gain on a flat or house with its land owned more than 2 years | exempt | 2026 | art. 82(1)(f.a), same URL |
| Gain on a car owned more than 6 months after registration | exempt | 2026 | art. 82(1)(f.b), same URL |
| Gain on other assets owned more than 2 years and not used in business | exempt | 2026 | art. 82(1)(f.c), same URL |
| Income of a resident that is not Georgian-source | exempt | 2026 | art. 82(1)(u), same URL |
| Micro business status: gross income limit, no hired staff | GEL 30,000 a year; no income tax | 2026 | art. 84(1), 86, same URL |
| Micro business: inventory limit | status revoked if inventory exceeds GEL 45,000 | 2026 | art. 85(2)(b), same URL |
| Small business status | 1% of taxable income | 2026 | art. 90(1), same URL |
| Small business, after gross income passes the limit | 3%, from the start of the month the limit is passed to year end | 2026 | art. 90(2), same URL |
| Construction services (SEK 006-2016 group 41.2, divisions 42, 43) to an enterprise, organisation or individual entrepreneur | outside small business status, taxed under the general rules, from 1 February 2025 | 2026 | Resolution No 415, annex 5, item 12 (Resolution No 436 of 23 December 2024), https://matsne.gov.ge/ka/document/view/6344539 |
| Small business gross income limit | GEL 500,000; GEL 700,000 for wine tourism and agro tourism operators | 2026 | art. 88(3), 89(2)(a), 90(2), same URL |
| Salary paid by a new or small small-business employer, not taxed at source | up to GEL 6,000 a year in total | 2026 | art. 94(4), same URL |
| Dividends from a resident company | 5% at source, final | 2026 | art. 130(1), (3), same URL |
| Interest | 5% at source, final; interest from a licensed Georgian financial institution exempt | 2026 | art. 131(1), (3), (5), same URL |
| Royalty paid to a resident individual (not VAT-registered) | 20% at source | 2026 | art. 132(1), same URL |
| Gifts and inheritance received by first and second line heirs | exempt | 2026 | art. 82(1)(g), same URL |
| Gifts and inheritance received by third and fourth line heirs | exempt up to GEL 150,000 a year | 2026 | art. 82(1)(i), same URL |
| Gifts from an individual (not from the employer) | exempt up to GEL 1,000 a year | 2026 | art. 82(1)(h), same URL |
| Lottery winnings | exempt up to GEL 1,000 | 2026 | art. 82(1)(w), same URL |
| Contributions to a voluntary private pension | exempt up to GEL 6,000 a year | 2026 | art. 82(1)(b4.a), same URL |
| Primary supply of Georgian farm produce by a farmer | exempt if gross income from it is up to GEL 200,000, until 1 January 2028 | 2026 | art. 82(1)(k), same URL |
| Disability from childhood, or severe or persistent disability | first GEL 6,000 of taxable income a year not taxed | 2026 | art. 82(2)(b), same URL |
| Veterans, single parents, adopters, foster parents and other art. 82(2)(a) groups | first GEL 3,000 of taxable income a year not taxed | 2026 | art. 82(2)(a), same URL |
| Current tax payments (entrepreneurs) | 25% of last year's tax on each of 15 May, 15 July, 15 September, 15 December | 2026 | art. 155(1), same URL |
| Penalty interest on late tax | 0.05% of the unpaid tax a day | 2026 | art. 272(4), same URL |

## The taxable base

**Taxable income** is gross income for the calendar year less the deductions allowed by the Code (art. 80(1)). An entrepreneur deducts business expenses under the general rules (art. 105-121). Expenses not related to economic activity, entertainment expenses (unless entertainment is the business) and personal expenses are not deductible, nor are purchases from a micro business unless the seller is taxed under the general rules (art. 106(a)-(c), (f)). A business loss of an entrepreneur cannot be set against his or her salary. It is carried forward for up to five years against future business profit (art. 121(3)). A loss on selling an asset that is not used in business can only be set against gains on assets of the same type in the same year. It is not carried forward (art. 121(1)-(2)).

**Salary** is taxed at source by the employer (art. 154(1)(a)); see [georgia-payroll](georgia-payroll.md). An employee whose income was all taxed at source does not file an annual return (art. 153(1)(a)).

**Income taxed at source is not added again.** Dividends taxed at source and interest taxed at source are not included in the resident's gross income and are not taxed further (art. 130(3), 131(3)). Interest from a licensed Georgian financial institution is not taxed at source and is not gross income (art. 131(5)). A royalty taxed at source is final for a non-entrepreneur. An entrepreneur may deduct the tax withheld (art. 132(2)-(3)).

**Residential rent.** If the individual rents out living space for residential use and claims no deductions, the rent is taxed at 5% (art. 81(2)). If deductions are claimed, the net rent is taxed at 20% (art. 81(1)).

**Gains on assets.** A gain on a flat or house with its land, or on a car, is taxed at 5% (art. 81(3)), unless the holding-period exemption applies: more than 2 years for a flat or house, more than 6 months after registration for a car (art. 82(1)(f.a)-(f.b)). Other assets owned more than 2 years are exempt if the owner did not use them in a business. Merely holding shares for dividends is not business use (art. 82(1)(f.c)).

**Foreign-source income.** Income, including gains, received by a resident that is not Georgian-source income is exempt (art. 82(1)(u)). The source rules are in art. 104.

**Micro business status.** For a natural person who works alone without hired staff and whose gross income for the calendar year does not exceed GEL 30,000 (art. 84(1)). A micro business pays no income tax (art. 86). The status is revoked if the person asks, applies for small business status, has inventory over GEL 45,000 at a tax authority count, or registers for VAT (art. 85(2)). A micro business that passes GEL 30,000 must apply for small business status within 15 days, or it loses its status (art. 85(3)).

**Small business status.** For an entrepreneur natural person (art. 88(1)). The taxable income is Georgian-source income other than salary and the income types the Government excludes (art. 90(3), 88(3)). The tax is on that income itself: the Code allows no deduction of expenses from it, so business costs do not reduce the 1% or 3% charge (art. 90(3)). **Construction for business customers.** Since 1 February 2025, income from construction services (National Classifier SEK 006-2016 group 41.2 buildings, division 42 civil engineering, division 43 specialised construction) supplied to an enterprise, an organisation or an individual entrepreneur is outside the 1% regime and is not counted toward the GEL 500,000 limit. It is taxed under the general rules (Government Resolution No 415, annex 5, item 12, added by Resolution No 436 of 23 December 2024). A builder with small business status pays 1% only on construction work for private individuals. The rate is 1% (art. 90(1)). When gross income for the year passes GEL 500,000 (GEL 700,000 for wine and agro tourism operators), the rate is 3% from the start of the month in which the limit is passed until the end of the year (art. 90(2)). The status ends from the next year if gross income passed the limit in each of 2 calendar years. It also ends on request (from the first day of the next month, art. 89(3^1)), for a barred activity, after three cash-register fines in a year, or when the person stops being an entrepreneur (art. 89(2)-(5)). A small business keeps a special book of records (art. 91(1)). Its loss is not carried forward unless it leaves the regime (art. 91(5)). It pays no current tax payments (art. 94(1)). Small business status does not stop VAT registration: a holder who passes the VAT threshold must register under art. 165 (art. 92(1)); see [georgia-vat](georgia-vat.md). At that moment it records its stock and may deduct VAT on it with documents (art. 92(2)-(3)).

**Small business employers.** Salary of up to GEL 6,000 in total in a year paid to staff by a small business is not taxed at source if the employer registered and got the status in the same year, or its gross income last year did not exceed GEL 50,000 (art. 94(4)).

**Exemptions for groups of people.** The first GEL 6,000 of taxable income a year is not taxed for persons with a disability from childhood or a severe or persistent disability, for persons seriously injured in peacekeeping operations, and for residents of high-mountain settlements on income from activity there (art. 82(2)(b)-(c)). The first GEL 3,000 is not taxed for war veterans, holders of the title Mother of Georgia, single parents, adopters (for one year) and foster parents (art. 82(2)(a)). Where a person qualifies for more than one, only the highest applies (art. 82(3)).

## Deadlines and filing

| What | Deadline | Source |
|---|---|---|
| Annual income tax return of a resident whose income is not taxed at source | before 1 April of the following year (Georgian text: "1 აპრილამდე", so by 31 March 2027 for 2026) | Tax Code art. 153(1)(a) |
| Payment of tax due under the annual return | within the time for filing the return, where the Code sets no other date | art. 62(2) |
| Small business monthly return and payment | by the 15th of the month after the month | art. 93(1^1) |
| Micro business annual return | before 1 April of the following year (by 31 March) | art. 93(1) |
| Return of a gain from selling property outside a business | by the 15th of the month after the month of the sale | art. 153(12) |
| Current tax payments of an entrepreneur, each 25% of last year's tax | 15 May, 15 July, 15 September, 15 December | art. 155(1) |
| Reduce current payments when income falls by at least 50% | notify the tax authority before the payment date | art. 155(3) |
| Return when an entrepreneur stops trading in Georgia | within 30 business days | art. 153(2); micro business art. 93(2) |
| Micro business that passes GEL 30,000 | apply for small business status within 15 days | art. 85(3) |
| Gift or inheritance of GEL 150,000 or more received by third or fourth line heirs | tax paid within two calendar years | art. 153(7) |

Returns are filed electronically with the Revenue Service (rs.ge). A person who need not file may file to claim a refund (art. 153(4)). A taxpayer who had no taxable income last year pays no current tax payments (art. 155(2)).

## Penalties and interest

| Breach | Penalty | Source |
|---|---|---|
| Late return, up to 2 months late | 5% of the tax on the return (Georgian text of art. 274(1); the English translation still shows an older wording of 5% a month capped at 30%) | Tax Code art. 274(1) |
| Late return, more than 2 months late | 10% of the tax on the return | art. 274(2) |
| Late return with no tax due | no fine | art. 274(3) |
| Tax understated by up to 5% of the tax on the return | 10% of the understated tax | art. 275(2^1) |
| Tax understated by more than 5% and up to 20% | 25% of the understated tax | art. 275(2^2) |
| Other understatement | 50% of the understated tax | art. 275(2) |
| Understatement over GEL 100,000 | treated as large-scale tax evasion under criminal law | art. 275(4) |
| Late payment | penalty interest of 0.05% of the unpaid tax for each day late, including the day of payment; not charged after 3 years | art. 272(2), (2^1), (4) |
| Breach of the registration rules | GEL 500 | art. 273 |
| Conduct that leads to loss of micro or small business status (art. 85(4), 89(2)(c)-(d)) | GEL 500 | art. 288 |

## Cross-border points

- **Residence** is the 183-day test in art. 34(2). A Georgian citizen who is resident nowhere may apply to be treated as resident (art. 34(6^1)).
- **Residents** pay no Georgian tax on foreign-source income (art. 82(1)(u)).
- **Non-residents without a permanent establishment** are taxed at source with no deductions: dividends 5% and interest 5% (art. 130, 131), royalties 5%, international telecom and transport 10%, other Georgian-source amounts 10%, salary 20% (art. 134(1)). The rate is 15% on interest, royalties and other income paid to a person registered in a country with preferential tax treatment (art. 134(1^1)).
- **Refund return for non-residents.** A non-resident taxed at source on items in art. 134(1)(c)-(e) may file before 1 April of the next year (Georgian text: "1 აპრილამდე") to be taxed on net income instead. The tax cannot exceed what was withheld (art. 134(3)-(4)).
- **Sale of property by a non-resident** is taxed on the gain, not the gross price (art. 80(4)-(5)).
- **Treaties.** A non-resident may use a privilege under an international agreement of Georgia (art. 125).

## Worked examples

**Example 1. Landlord who also sold a car.** A resident individual who is not an entrepreneur rents a flat to a family for living purposes at GEL 2,000 a month in 2026, GEL 24,000 for the year, and claims no deductions. The tenant is a private individual, so no tax is withheld. The rent is taxed at 5%, GEL 1,200 (art. 81(2)), on the annual return due by 31 March 2027 (before 1 April, art. 153(1)(a)). In May 2026 she also sold a car she had owned for four months for GEL 3,000 more than she paid. Four months is not more than six, so the gain is taxed at 5%, GEL 150 (art. 81(3), 82(1)(f.b)), on a return due by 15 June 2026 (art. 153(12)).

```oa-check
name: Georgia, residential rent at 5% and a short-held car gain, 2026
inputs:
  monthly_rent: 2000
  months: 12
  rent_rate: 0.05
  car_gain: 3000
  car_rate: 0.05
steps:
  - annual_rent: monthly_rent * months
  - rent_tax: annual_rent * rent_rate
  - car_tax: car_gain * car_rate
  - total_tax: rent_tax + car_tax
expected:
  annual_rent: 24000
  rent_tax: 1200
  car_tax: 150
  total_tax: 1350
```

**Example 2. Small business that passes GEL 500,000 in November.** An individual entrepreneur with small business status (not a tourism operator) has gross income of GEL 480,000 from January to October 2026. In November she earns GEL 60,000, so her gross income for the year reaches GEL 540,000 and passes GEL 500,000 in November. In December she earns GEL 40,000. January to October is taxed at 1%, GEL 4,800. From the start of November to the end of the year the rate is 3% (art. 90(2)), so November and December are taxed at GEL 3,000. Tax for the year is GEL 7,800, paid month by month with each monthly return by the 15th of the next month (art. 93(1^1)). She keeps the status for 2027. It ends only if she passes the limit again in 2027 (art. 89(2)(a), (3)).

```oa-check
name: Georgia, small business status, limit passed in November, 2026
inputs:
  income_jan_oct: 480000
  income_nov: 60000
  income_dec: 40000
  limit: 500000
  rate_low: 0.01
  rate_high: 0.03
steps:
  - total_income: income_jan_oct + income_nov + income_dec
  - over_limit_in_nov: income_jan_oct + income_nov - limit
  - tax_jan_oct: income_jan_oct * rate_low
  - tax_nov_dec: (income_nov + income_dec) * rate_high
  - tax_year: tax_jan_oct + tax_nov_dec
expected:
  total_income: 580000
  over_limit_in_nov: 40000
  tax_jan_oct: 4800
  tax_nov_dec: 3000
  tax_year: 7800
```

## Ask the client first

1. Is this the country of Georgia (GEL), not the US state?
2. How many days was the person in Georgia in each 12-month period ending in 2026, and for what purpose?
3. Is the person an individual entrepreneur, and does he or she hold micro business, small business or fixed tax status? Gross income by month? Any construction work for business customers (outside the 1% regime since 1 February 2025)? If no status is held yet, what are the business costs: small business status taxes gross income at 1% (art. 90(1)), the general rule taxes profit at 20% (art. 81(1)), so the status costs less while costs are below 95% of income (85% once the 3% rate applies, art. 90(2)).
4. What income is there besides salary: rent (residential or not, deductions claimed or not), dividends, interest, royalties, sales of property (with purchase and registration dates)?
5. Is any income from outside Georgia, and where does the payer sit?
6. Does any exemption group in art. 82(2) apply (disability, single parent, veteran, high-mountain settlement)?

## Sources

| Source | URL | Read on |
|---|---|---|
| Tax Code of Georgia, English, consolidated publication 247 (to the law of 15 October 2026): arts. 34, 62, 67, 79-82, 84-95^6, 100, 104-106, 121, 125, 130-132, 134, 153-155, 272-275, 288, 291 | https://matsne.gov.ge/en/document/view/1043717?publication=247 | 2026-10-31 |
| Tax Code of Georgia, Georgian text, consolidated publication 247: arts. 81, 82, 84-94, 130, 131, 134, 153, 155, 272, 274 (cross-check; art. 274(1) followed where the English differs) | https://matsne.gov.ge/ka/document/view/1043717?publication=247 | 2026-10-31 |
| Government of Georgia Resolution No 436 of 23 December 2024 amending Resolution No 415 on special tax regimes (annex 5, item 12, in force 1 February 2025) | https://matsne.gov.ge/ka/document/view/6344539 | 2026-10-31 |

Not yet confirmed: the rest of the Government lists of income outside the micro and small business limits and of activities barred from these statuses (art. 84(2)-(4), 88(2)-(3); only annex 5 item 12 of Resolution No 415 was read); the fixed tax activities and rates set by the Government (art. 95^1-95^6); the Georgian-source rules in art. 104 (not read in full); the English translation lags the Georgian text for art. 82 (laws of June 2025, November 2025 and 1 April 2026), and art. 94(2) still appears in English but is repealed in Georgian, so the Georgian text was used where they differ; whether a missed small business monthly return with no tax due is fined (the old version said GEL 100 per return; art. 274(3) imposes no late-filing fine where the tax is zero, art. 67(4) deems an unfiled return filed at zero except where the Minister of Finance provides otherwise, and art. 291 sets GEL 100 for a breach with no fine of its own; the Minister's order was not read); whether VAT charged by a VAT-registered entrepreneur is left out of gross income (the old version said so; no article found); whether a gain on a flat or house is taxed at 5% on the gross gain or after costs (art. 82(4)(b) not read); the rs.ge return forms; treaty rates.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-31. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `georgia-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/georgia-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.