What is the personal income tax rate in Georgia?

Checked on 2026-10-25

The Tax Code of Georgia taxes an individual's taxable income at a flat 20%, unless the Code says otherwise. The main exceptions: dividends from a Georgian company and interest paid by a Georgian resident are taxed 5% at source, renting out housing for residential purposes can be taxed at 5%, and small business status pays 1%.

Key facts

What	The law says	Source
General rate	20% of taxable income, unless the Code provides otherwise	Tax Code, art. 81(1)
Taxable income (resident)	Total income in a calendar year minus the deductions allowed by the Code	Tax Code, art. 80(1)
Renting out housing for living in	5%, if you make no deductions from this income	Tax Code, art. 81(2)
Gain on an apartment (house) with its land, or a vehicle	5%	Tax Code, art. 81(3)
Dividends from a Georgian company	5% withheld at source; not taxed again	Tax Code, art. 130(1) and (3)
Interest paid by a Georgian resident	5% withheld at source; not taxed again	Tax Code, art. 131(1) and (3)
Interest from a licensed Georgian financial institution	Not taxed at source and not included in gross income	Tax Code, art. 131(5)
Royalties paid to a resident individual	20% withheld at source (not for VAT-registered individuals)	Tax Code, art. 132(1)
Small business status	1%; 3% from the month gross income passes GEL 500 000	Tax Code, art. 90

The general rule

The Tax Code sets one rate for individuals: 20% of taxable income, unless the Code says otherwise (art. 81(1)). For a resident, taxable income is total income in a calendar year minus the deductions the Code allows (art. 80(1)).

Where the rate is different

Renting out housing. If you rent out residential space to an organisation or a person for living in, and you make no deductions from that income, it is taxed at 5% (art. 81(2)).
Selling an apartment or a car. A gain from supplying a residential apartment (house) with its land, or a vehicle, is taxed at 5% (art. 81(3)). Some of these gains are exempt after a minimum ownership period (art. 82(1)(f)).
Dividends and interest. Dividends from a Georgian company, and interest paid by a Georgian resident, are taxed 5% at source, and the individual pays no further tax on them (arts. 130–131). Interest from a licensed financial institution isn’t taxed at all (art. 131(5)).
Royalties. Taxed 20% at source when paid to a resident individual who isn’t VAT-registered (art. 132(1)).
Special regimes. Small business status: 1% (3% above GEL 500 000 a year). Micro business status: no income tax (arts. 86, 90).

Foreign income: a resident’s income that is not Georgian-source is exempt (Tax Code, art. 82(1)(u)).

Sources

Tax Code of Georgia, No 3591 of 17 September 2010, arts. 80, 81, 90, 130–132 (consolidated English text, Legislative Herald of Georgia, matsne.gov.ge) checked 2026-10-25

Change history

2026-10-25: Page created

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