Franchise Tax

Franchise Tax in Georgia: Complete Guide 2026

Updated 2026-03-12

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Franchise Tax in Georgia: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Georgia imposes a net worth tax on corporations and certain other entities doing business in the state. Although often referred to as a “franchise tax,” Georgia’s version is technically a net worth tax assessed on the entity’s Georgia-apportioned net worth. The tax uses a graduated rate table with rates starting at approximately ~0.05% and increasing to ~0.20% on the highest brackets. Combined with Georgia’s ~5.75% corporate income tax, the net worth tax adds a meaningful capital-based levy that businesses must account for in their Georgia tax planning.

Georgia Net Worth Tax Rates (2026)

Georgia’s net worth tax uses a graduated table based on Georgia-apportioned net worth:

Georgia Net WorthTax Amount
Up to ~$100,000~$10 minimum
~$100,001 to ~$500,000~$100 to ~$500 (graduated)
~$500,001 to ~$1,000,000~$500 to ~$1,250
~$1,000,001 to ~$5,000,000~$1,250 to ~$5,000
~$5,000,001 to ~$10,000,000~$5,000 to ~$7,500
~$10,000,001 to ~$25,000,000~$7,500 to ~$10,000
Over ~$25,000,000~$10,000 maximum

The tax is capped at ~$10,000, which means even the largest corporations in Georgia pay no more than ~$10,000 in net worth tax. This cap makes the net worth tax a modest burden for large enterprises but a proportionally higher burden for smaller and mid-sized businesses.

How the Georgia Net Worth Tax Works

Who Must Pay

Georgia’s net worth tax applies to:

  • Domestic corporations organized in Georgia
  • Foreign corporations doing business in Georgia
  • LLCs that are taxed as corporations
  • Banking and financial institutions (subject to separate calculation)

S-corps, partnerships, LLCs taxed as partnerships, and sole proprietorships are generally exempt from the net worth tax. Nonprofit organizations with federal tax-exempt status are also typically exempt.

Calculating Georgia-Apportioned Net Worth

For entities operating only in Georgia, net worth equals total equity (assets minus liabilities) as reported on the entity’s balance sheet. For multistate corporations, net worth is apportioned to Georgia using the ratio of Georgia-sourced income to total income (the same apportionment ratio used for the corporate income tax). The result is the Georgia-apportioned net worth, which determines the tax bracket.

The ~$10,000 Cap

Georgia’s ~$10,000 maximum net worth tax is unusually low compared to other states’ franchise or net worth taxes. For perspective, a Texas corporation with the same net worth could owe tens or hundreds of thousands of dollars in franchise tax. The cap effectively makes Georgia’s net worth tax a nominal fee for large corporations, while it represents a proportionally larger burden for smaller entities.

Filing Requirements

RequirementDetail
Filing deadlineSame as the corporate income tax return (~15th day of the ~4th month after fiscal year-end; April ~15 for calendar-year filers)
Where to fileIncluded on the Georgia Form ~600 (Corporate Tax Return) or Form ~600S (S-Corp Return, if applicable)
Minimum tax~$10
ExtensionAutomatic ~6-month extension with timely estimated payment

The net worth tax is reported on the same return as the corporate income tax, reducing administrative burden compared to states that require a separate franchise tax filing.

Comparison to Other State Franchise/Net Worth Taxes

StateTax TypeRateMaximum TaxBase
GeorgiaNet worth tax~0.05%—~0.20% (graduated)~$10,000Georgia-apportioned net worth
TexasFranchise (margin) tax~0.375%—~0.75%No capRevenue minus deductions
TennesseeFranchise tax~0.25%No capGreater of net worth or property
LouisianaFranchise tax~0.15%—~0.30%No capTaxable capital (incl. debt)
DelawareFranchise taxVariesNo statutory capAuthorized shares or assumed par value

Georgia’s ~$10,000 cap makes its net worth tax the most business-friendly capital-based tax among major franchise/net worth tax states. This is a significant advantage for large corporations choosing among Southeastern state headquarters locations.

Tips for Minimizing Georgia Net Worth Tax

  1. Verify your entity type. S-corps, partnerships, and LLCs taxed as partnerships are generally exempt. Ensure your entity classification is correct.
  2. Optimize the apportionment ratio. Multistate corporations use the income apportionment ratio to determine Georgia net worth. Reducing the Georgia income ratio directly reduces the net worth tax base.
  3. Take advantage of the ~$10,000 cap. For large corporations, the cap means the net worth tax is effectively a flat fee. Focus compliance efforts on the corporate income tax, which has no cap.
  4. File the net worth tax with the income tax return. Georgia does not require a separate filing. Ensure the net worth section of Form ~600 is completed accurately.
  5. Review balance sheet classifications. The net worth calculation starts from the balance sheet. Accurate classification of assets and liabilities affects the computed net worth and may change the applicable tax bracket.
  6. Pay estimated taxes to avoid penalties. Georgia requires estimated tax payments if the combined corporate income and net worth tax liability exceeds approximately ~$800. Underpayment penalties accrue from the quarterly due dates.

Key Takeaways

  • Georgia’s net worth tax is a graduated tax on Georgia-apportioned net worth with rates from approximately ~0.05% to ~0.20%, capped at a maximum of ~$10,000
  • The tax applies to corporations and LLCs taxed as corporations; S-corps, partnerships, and sole proprietorships are generally exempt
  • The ~$10,000 cap makes this one of the lowest-cost franchise/net worth taxes in the country for large businesses
  • The net worth tax is filed as part of the corporate income tax return (Form ~600), not as a separate filing
  • Multistate corporations apportion net worth using the same income apportionment ratio as the corporate income tax
  • The minimum tax is approximately ~$10

Next Steps