People who live or earn income in Georgia ask the same question first: how much income tax do I pay? This guide summarises the rates in the Tax Code.
The general rate
A natural person’s taxable income is taxed at 20%, unless the Code provides otherwise (Article 81(1)).
The 5% rate for rental income
- When a natural person rents out residential space to an organisation, a legal entity or another natural person for residential purposes, the income received is taxed at 5% if the person makes no deductions from it (Article 81(2)).
- Surplus income from providing a residential apartment or house and its land, or a vehicle, is also taxed at 5% (Article 81(3)).
Dividends
Dividends paid to a natural person by a resident enterprise are taxed at source at 5% (Article 130). Read how the company side works in our guide to profit tax in Georgia.
Self-employed people
An individual entrepreneur can apply for small business status and pay 1% on income instead of the general regime, within the limits of the Code.
What to prepare
- Keep contracts and payment proof for every income stream.
- Decide early whether you are an employee, an individual entrepreneur or a company owner; the tax result is different.
- Check whether you also need to register for VAT, see VAT in Georgia.
MITC keeps your books, files your returns and checks which regime fits you. Contact us for a consultation.
Source: Tax Code of Georgia, consolidated version of 28 October 2026 (matsne.gov.ge), Articles 81 and 130. Last verified: 7 November 2026. Rates and rules can change; confirm them with MITC or the Revenue Service before acting.
