Georgia Net Worth Tax: Complete Guide
Georgia imposes both a 5.39% corporate income tax (dropping to 5.19% in 2025) AND an annual Net Worth Tax on every corporation doing business in or qualified to do business in Georgia. The Net Worth Tax is a flat fee tiered by net worth, with rates up to $5,000 per year per corporation.
Georgia's Net Worth Tax is an annual fee imposed on every corporation incorporated in Georgia OR qualified to do business in Georgia. The tax is tiered: $10 for net worth under $10,001 up to $5,000 for net worth over $22 million. Net Worth Tax is reported on Form 600 (C-corps) or Form 600-S (S-corps) alongside Georgia corporate income tax (5.39% for 2024, dropping to 5.19% in 2025). Returns are due April 15 for calendar-year filers.
Who Owes It
- Every C-corporation incorporated in Georgia
- Every foreign corporation qualified to do business in Georgia (regardless of actual activity)
- Every S-corporation incorporated or qualified in Georgia — pays Net Worth Tax but not GA corporate income tax
- LLCs taxed as corporations federally — treated as corporations for GA Net Worth Tax
- Out-of-state corporations with Georgia economic nexus ($250,000+ in GA sales)
Filing Details
- Due date
- 15th day of the 4th month after year-end. Calendar-year: April 15. 6-month extension via Form IT-303 (extends time to file but not to pay).
- Minimum tax
- $10 for net worth under $10,001. Even dormant Georgia corporations owe at least $10 annually until formally dissolved.
- Maximum / rate
- $5,000 per year for corporations with net worth over $22 million. (Net worth = capital stock + paid-in capital + retained earnings.)
- How to file
- Online via Georgia Tax Center (gtc.dor.ga.gov). Paper Form 600 or Form 600-S still accepted.
- Payee
- Georgia Department of Revenue. Payment via ACH debit, ACH credit, credit card (with fee), or check.
Most Common Problems
The patterns we see most often when clients come to us with Georgia Net Worth Tax problems.
1. Dormant corporations missing Net Worth Tax returns
Many holding companies, shell corps, and inactive Georgia entities miss the requirement that EVERY Georgia corporation (active or not) must file Form 600 annually until formally dissolved. Years of $10–$5,000 assessments stack with penalties and interest until discovered.
2. Foreign-qualified corporations forgetting GA filings
Out-of-state corporations that registered to do business in Georgia must file Net Worth Tax returns even if all activity ceased. Withdrawing from Georgia requires filing Form CD-415 with the Secretary of State — not just stopping business activity.
3. Sales-factor apportionment errors
Georgia uses single-sales-factor apportionment with market-based sourcing for services. Mis-sourcing services receipts can produce six- and seven-figure corporate income tax adjustments (separate from but bundled with Net Worth Tax examinations).
4. Successor liability after asset purchase
Under O.C.G.A. § 48-2-58, buyers of a Georgia business can be held liable for the seller's unpaid corporate tax, sales tax, and withholding unless they obtain a tax-clearance certificate (Form ST-5) before closing. Many M&A deals miss this.
How to Fix It: Step-by-Step Resolution
The same playbook our attorneys use when a new client walks in with Georgia Net Worth Tax delinquency.
- 1
Pull a Georgia tax account summary from GTC
Log into Georgia Tax Center or request a written transcript showing every assessed period, penalty, and lien across Net Worth Tax, corporate income tax, sales tax, and employer withholding. Coordinated review is essential because GA bundles all corporate taxes in one account.
- 2
File all missing Form 600 and Form 600-S returns
Failure to file is 5% per month, capped at 25% (minimum $25). Filing actual returns replaces GDOR's estimated assessments and stops penalty stacking.
- 3
Request penalty abatement under O.C.G.A. § 48-2-43
Georgia grants reasonable-cause penalty waiver — file a written abatement request with documentation. First-time-offender abatement is available for taxpayers with 36+ months of clean prior compliance.
- 4
Negotiate an installment agreement with GDOR Compliance
Georgia offers payment plans up to 60 months for individuals and up to 36 months for businesses. Liens may be subordinated for refinancing but generally are not released until full payment.
- 5
Appeal to the Georgia Tax Tribunal within 30 days
Final assessments must be appealed to the Georgia Tax Tribunal within 30 days of the Notice of Final Assessment. Missing this window forfeits administrative review — only a refund suit in Superior Court remains.
Penalties & Consequences
Late filing: 5% per month, capped at 25% (minimum $25). Late payment: 0.5% per month, capped at 25%. Negligence: 5% one-time. Fraud: 50% penalty. Interest at the federal short-term rate + 3%. Trust-fund personal liability under O.C.G.A. § 48-2-52 for unpaid sales tax and withholding — routinely bundled with corporate assessments.
Why a Tax Attorney (Not Just Your Registered Agent)
Georgia corporate cases routinely bundle Net Worth Tax, corporate income tax, sales tax, employer withholding, and personal officer trust-fund liability under O.C.G.A. § 48-2-52. The 30-day Tax Tribunal appeal window is jurisdictional and the formal-dissolution requirements are easy to miss. A tax attorney coordinates Secretary of State filings, multi-tax assessments, and trust-fund officer defense in one engagement.
Frequently Asked Questions
Do S-corporations owe Georgia Net Worth Tax?+
Yes — every S-corporation incorporated or qualified in Georgia owes Net Worth Tax annually, even though S-corps do not pay Georgia corporate income tax. The Net Worth Tax is reported on Form 600-S alongside the informational corporate return. This is a common surprise for new Georgia S-corp owners.
What's the Georgia corporate income tax rate?+
Georgia's corporate income tax rate is 5.39% for tax year 2024, dropping to 5.19% in 2025 under H.B. 581 (2024). Combined with Net Worth Tax (up to $5,000/year) and federal corporate tax (21%), Georgia C-corporations face an effective combined rate around 25–26% on apportioned net income.
How is Georgia 'net worth' calculated for Net Worth Tax?+
Net worth for GA Net Worth Tax purposes = capital stock + paid-in capital + retained earnings (or surplus). It does NOT include treasury stock. For apportioned filers, multiply total net worth by the Georgia apportionment factor (sales-factor sourcing). Foreign corporations qualified in GA but with no GA activity still owe the minimum based on full net worth.
Can I dissolve a Georgia corporation to stop Net Worth Tax?+
Yes — but you must formally dissolve with the Georgia Secretary of State AND file a final Form 600/600-S with GDOR. Simply ceasing operations is not enough. Net Worth Tax continues to accrue annually until both the Secretary of State filing AND the final tax return are processed. Many clients discover years of accrued tax after letting a corp 'die quietly.'
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Tax Attorney | Civil and Criminal Tax Controversy & Litigation Specialist
Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his clients describe as rare in the tax resolution industry: genuine attention to detail, direct attorney access, and a willingness to litigate when the IRS refuses to be reasonable.
Don’t Overpay Georgia. Don’t Wait for Forfeiture.
Our tax attorneys resolve Georgia Net Worth Tax delinquency, federal corporate tax exposure, and officer personal liability in one coordinated strategy.
Call (877) 829-5267