Georgia switched to a flat income tax in 2024 and has been cutting the rate since. For 2026 it is 4.99%, with a generous standard deduction — which keeps the state layer fairly light for most freelancers.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit |
| Federal income tax | 10%–37% |
| Georgia income tax | Flat 4.99% for 2026 (down from 5.19% in 2025) |
Georgia’s 4.99% and the standard deduction
A 2026 law cut Georgia’s flat rate from 5.19% to 4.99% starting January 1, 2026, and provides for further reductions in later years. Georgia’s standard deduction is $15,000 for single filers, heads of household and married people filing separately, and $30,000 for married couples filing jointly.
Georgia starts from your federal adjusted gross income, so Schedule C business expenses and the deduction for half of your self-employment tax reduce Georgia income too. The federal QBI deduction does not carry over.
Estimated payments
Georgia expects estimated payments (Form 500-ES) when your tax isn’t covered by withholding. Payments follow the federal calendar: April 15, June 15 and September 15, 2026, and January 15, 2027. Use the quarterly estimated tax calculator for the federal part and add a quarter of your expected Georgia tax to each date.
Withholding note for side earners
Because the 4.99% rate took effect after employers had set up 2026 payroll, many continued withholding at 5.19% until mid-May 2026. If you have a day job plus freelance income, that extra withholding counts toward your Georgia tax and may reduce what you need to pay in estimates.
LLCs and local taxes
- Georgia LLCs file an annual registration with the Secretary of State each year.
- Many Georgia cities and counties require a local business license (occupation tax certificate), including for home-based businesses.
- Georgia doesn’t tax most services, but sales of physical goods are subject to state and local sales tax.
How much to set aside
Enter 4.99 in the state field of the tax set-aside calculator. Thanks to the $15,000 standard deduction, your real Georgia cost is somewhat lower at modest incomes, so this gives you a small cushion.