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Income tax in Georgia 2026
Employment and business income earned in Georgia is taxed at a flat 20% from the first lari.
The system is territorial for individuals: a resident's foreign salary, foreign dividends or foreign gains are simply not taxed.
Registered small entrepreneurs swap the 20% on profit for 1% of turnover, up to GEL 500,000 a year.
Employers withhold the 20% monthly, so most employees never file a return.
At a glance
- top rate
- 20% flat
- entry band
- 20% from the first lari — no general personal allowance
- tax year basis
- Calendar year 2026
- filing deadline
- 31 March 2027 (before 1 April by law) for the annual declaration, where one is needed
- residency basis
- Georgian-source income only, for residents and non-residents alike
- regime flag
- Small Business Status — 1% of turnover up to GEL 500,000
Rates
Personal tax rates 2026
| Income type | Rate |
|---|---|
| Employment and business income earned in Georgia | 20% |
| Registered small business (turnover up to GEL 500,000) | 1% of turnover |
| Dividends and interest from Georgian payers | 5% final, withheld at source |
| Foreign-source income of residents | 0% |
Marginal rates apply within each band.
Thresholds & allowances
- General personal allowanceNone
The flat 20% applies from the first lari of Georgian-source income.
- Small Business Status turnover capGEL 500,000 a year
Registered individual entrepreneurs within the cap pay 1% of turnover instead of 20% of profit.
- Micro-business statusTurnover under GEL 30,000
The smallest operators with no hired staff pay no income tax at all under the tax code; the status lapses above GEL 30,000 turnover or on registration for value added tax (VAT).
Residency
Residency trigger
You are tax resident after 183 days or more in Georgia within any continuous 12-month period ending in the tax year. A high-net-worth individual (HNWI) route grants residency on wealth criteria without the day count.
Non-resident treatment
Non-residents are taxed only on Georgian-source income, largely at the same rates — 20% on salary for work performed in Georgia, 5% on local dividends and interest.
Notes
- Employers withhold the flat 20% from monthly pay; an annual declaration by 31 March of the following year (the law says before 1 April) is needed only for income that escaped withholding.
- Individual entrepreneurs pay estimated tax in four instalments — by 15 May, 15 July, 15 September and 15 December.
- Because taxation is territorial, remote workers living in Georgia but paid from abroad often owe 0% locally on that foreign income — a key draw of the system.
- Turnover above GEL 500,000 moves the small-business rate to 3% from the month the cap is crossed until year end; repeated breaches end the status.
FAQ
What rate do I pay on my Georgian salary?
A flat 20%, withheld by your employer each month. There are no brackets and no general tax-free allowance.
I live in Tbilisi but my clients pay me from abroad — what do I owe?
Income sourced outside Georgia is untaxed for resident individuals, so often 0%. If the work is performed in Georgia for local payers, the 20% (or the 1% small-business regime) applies.
Do I have to file a return?
Usually not as an employee — withholding settles it. Otherwise the annual declaration is due by 31 March 2027 for 2026 income — the law says before 1 April.
Figures: tax year 2026, compiled from public sources. Not tax advice.