The following article presents a direct overview of the individual income tax framework for Georgia (country code: GE), with precise details on tax rates, applicable surcharges, and practical implications for the 2025 assessment year.
Overview of Individual Income Tax in Georgia
Georgia maintains a straightforward approach to personal income tax. The tax regime is characterized by a flat tax rate, applicable to most forms of individual income, without the complexity of progressive brackets commonly seen in other jurisdictions.
Summary Table: Georgia’s Individual Income Tax Structure (2025)
| Type | Assessment Basis | Flat Rate (%) | Currency |
|---|---|---|---|
| Flat | Income | 20% | GEL (₾) |
In 2025, all individual income is assessed using a flat rate of 20% (₾, GEL). There are no income brackets or tiered rates for most taxpayers.
Applicable Surtaxes and Special Rates
While the base personal income tax rate is flat, Georgia applies specific surtaxes and separate rates in defined circumstances. The following table outlines these special situations and corresponding rates:
| Applicable Income Type / Situation | Rate (%) | Conditions |
|---|---|---|
| Small business entrepreneurs (annual turnover < ₾500,000) | 1% | Registered as individual entrepreneurs |
| Small business entrepreneurs (annual turnover > ₾500,000) | 3% | Registered as individual entrepreneurs |
| Rental income (residential, undeducted) | 5% | Income from renting residential property to organisations, legal entities, or individuals for residential use |
| Capital gain: sale of vehicle or residential property with land | 5% | Applies to individuals on qualifying transactions |
For other individual incomes that do not fall under these categories, the headline 20% flat income tax applies. There are no published bracket thresholds or progressive scales for the current framework. It is notable that the headline rates are significantly lower than average for the region, which may be of interest for those considering residency or business formation in Georgia.
Additional Details on Georgia’s Income Tax Framework
Georgia’s personal income tax is assessed on the entirety of qualifying income. The definition of qualifying income and the means of assessment are determined by national regulations. Presently, there is no published data regarding minimum or maximum holding periods that affect taxation for individuals. Taxation of capital gains and rental income is comparatively straightforward, with explicit application of the 5% rate as detailed above.
Absence of Income Brackets and Allowances
No data is available on standard income tax brackets or the application of basic allowance thresholds. Taxpayers should take note that, unlike progressive systems seen in some other countries, Georgia has chosen to maintain a flat structure to maximize simplicity and predictability. If future reforms or fiscal updates introduce bracketed rates or allowances, these would be updated by Georgian authorities.
Official Resources
For more detailed and updated information, refer to the Georgian Revenue Service’s official homepage: https://www.rs.ge/
Pro Tips for Individual Income Tax in Georgia (2025)
- Verify your registration status: Ensure that you are correctly registered as a small business entrepreneur if eligible, as this uniquely qualifies you for the lower 1% or 3% surtax rates.
- Understand rental income rules: If you derive rental income from residential property, ensure whether deductions are applicable, since the 5% rate only applies if no deductions are made.
- Monitor capital gain situations: The 5% capital gains tax applies to sales of vehicles or residential property with land; keep records of acquisition and sale dates for compliance.
- Keep up with local compliance requirements: Regularly check updates from the Georgian Revenue Service to remain informed about any regulatory changes or reporting obligations.
Georgia’s individual income tax system in 2025 is marked by its flat-rate simplicity and several targeted surtaxes for specific forms of income. For most residents, a 20% flat rate applies across qualifying income, with advantageous lower rates for small entrepreneurs, rental, and capital gains income under defined conditions. Anyone seeking to optimize their tax position in Georgia should pay close attention to their income type and registration details. Overall, the Georgian regime offers a predictable and relatively low-burden landscape for international professionals and business owners.