Georgia Net Worth Tax (the State's Franchise-Style Tax): Who Pays It and How Much
Short answer: Georgia does not charge a franchise tax on a typical single-member or partnership LLC. What Georgia does charge is a net worth tax, which applies to corporations and to LLCs taxed as corporations. If you searched for georgia franchise tax or georgia franchise tax llc, this is the tax you are looking for, and it depends on how the entity is taxed for income tax purposes, not on what the entity is called.
This guide covers who owes the georgia net worth tax, how the amount is set using the georgia net worth tax table, which return to file (georgia form 600 net worth tax or Form 600S), and when it is due.
Who Pays the Net Worth Tax and Who Does Not
Subject to the net worth tax:
- Domestic corporations (formed in Georgia)
- Foreign corporations doing business or owning property in Georgia
- An LLC taxed as a corporation, including an LLC that elected S status
- A corporation that owns a single-member LLC doing business in Georgia
Not subject to the net worth tax:
- A single-member LLC that is disregarded for tax purposes
- An LLC taxed as a partnership
- Sole proprietors
- General partnerships
A corporation registered with the Secretary of State must file the net worth portion of Form 600 or 600S every year, even if no income tax return would otherwise be required. Filing a $0 return is still required when the tax owed is zero.
Homeowners associations not organized for profit are not liable for the tax.
The Georgia Net Worth Tax Table
The tax is based on net worth, which means issued capital stock, paid-in surplus and earned surplus, taken from the ending balance sheet of the prior year. Find the bracket that matches your net worth:
| Net worth | Annual net worth tax |
|---|---|
| Not over $100,000 | $0 |
| Over $100,000 to $150,000 | $125 |
| Over $150,000 to $200,000 | $150 |
| Over $200,000 to $300,000 | $200 |
| Over $300,000 to $500,000 | $250 |
| Over $500,000 to $750,000 | $300 |
| Over $750,000 to $1,000,000 | $500 |
| Over $1,000,000 to $2,000,000 | $750 |
| Over $2,000,000 to $4,000,000 | $1,000 |
| Over $4,000,000 to $6,000,000 | $1,250 |
| Over $6,000,000 to $8,000,000 | $1,500 |
| Over $8,000,000 to $10,000,000 | $1,750 |
| Over $10,000,000 to $12,000,000 | $2,000 |
| Over $12,000,000 to $14,000,000 | $2,500 |
| Over $14,000,000 to $16,000,000 | $3,000 |
| Over $16,000,000 to $18,000,000 | $3,500 |
| Over $18,000,000 to $20,000,000 | $4,000 |
| Over $20,000,000 to $22,000,000 | $4,500 |
| Over $22,000,000 | $5,000 |
Confirm this table against the current Form 600 instructions (the IT-611 booklet) before you file, because the brackets and amounts are set by the Department of Revenue and can change. The Department of Revenue website is dor.georgia.gov.
How the Tax Is Calculated
The method depends on where the corporation was formed:
- Domestic corporations and domesticated foreign corporations are taxed on total net worth.
- Corporations formed in other states that are not domesticated are taxed only on the portion of net worth tied to Georgia. The return uses a property and gross receipts ratio to find that portion.
Find your starting net worth on the prior year's ending balance sheet. Then apply the bracket from the table. A corporation with $350,000 of net worth, for example, falls in the over $300,000 to $500,000 bracket and owes $250 for that year.
Which Form to File
- Form 600: C corporations, including LLCs taxed as C corporations
- Form 600S: S corporations, including LLCs that elected S status. The net worth computation is on Schedule 3.
- Consolidated groups: reported on the consolidated schedule
When the Net Worth Tax Is Due
The deadline depends on the type of corporation:
- C corporation: the 15th day of the fourth month after the start of the tax year. For a calendar-year C corporation, that is April 15.
- S corporation: the 15th day of the third month after the start of the tax year. For a calendar-year S corporation, that is March 15.
The net worth tax year runs one year behind the income tax year, so confirm which year you are reporting in the Form 600 instructions.
Failing to file or pay can threaten the corporation's charter status with the Secretary of State. File on time even when the amount due is $0.
First-Year Rules
A new corporation's first net worth return is based on its beginning net worth. This return is separate from the first income tax return. If the first tax period is under six months, the net worth tax is 50% of the amount that would otherwise apply. A full year of net worth tax is then due with the first income tax return.
Entity Type Comparison
| Entity type | Net worth tax applies? | Return |
|---|---|---|
| Sole proprietor | No | None for net worth tax |
| General partnership | No | None for net worth tax |
| Single-member LLC (disregarded for tax) | No | None for net worth tax |
| Multi-member LLC taxed as a partnership | No | None for net worth tax |
| LLC taxed as an S corporation | Yes | Form 600S |
| LLC taxed as a C corporation | Yes | Form 600 |
| C corporation | Yes | Form 600 |
| S corporation | Yes | Form 600S |
| Corporation that owns a single-member LLC doing business in Georgia | Yes | Form 600 or 600S, as the corporation is taxed |
Do Not Confuse the Net Worth Tax With the Annual Registration
Every Georgia LLC files an annual registration with the Secretary of State. It costs $60 ($50 plus a $10 service charge), is filed between January 1 and April 1 each year, and carries a $25 late penalty if filed late. This is a Secretary of State filing fee, not a tax. An LLC owes it whether or not it owes any net worth tax. The Secretary of State has a separate corporations page at sos.ga.gov/corporations-division, and the annual filing rules are covered in our Georgia LLC annual registration guide.
Corporations also file the $60 annual registration, but a new corporation's first registration is due within 90 days of incorporating (a corporation formed after October 1 files between January 1 and April 1 of the next year).
Georgia Income Tax Rate
Georgia income tax is one flat rate, not a graduated schedule. It is 5.19% for 2025 and 4.99% for 2026. The corporate income tax rate equals the individual rate, so a corporation pays 5.19% for 2025 and 4.99% for 2026 on its Georgia taxable income. The net worth tax is separate from income tax and is calculated using the table above.
Next Steps
- If you are deciding between an LLC and a corporation, start with our guide to starting a corporation in Georgia.
- If you plan to elect S status, read how to start an S corp in Georgia, including the formation and tax election steps.
- For the full list of Georgia business tax obligations, see Georgia business taxes.
Before you file the first return, check the Secretary of State's corporations division at sos.ga.gov/corporations-division for formation details, and check the Department of Revenue at dor.georgia.gov for the current Form 600 and 600S instructions.
Important Disclaimer
This page is informational content, not legal or tax advice. Tax treatment depends on your facts, including how your entity is classified for federal and Georgia income tax, where it does business, and how its net worth is measured. Consult a qualified CPA or business attorney before you file, especially if you have a consolidated group, out-of-state property or receipts, or an unusual first year.