Are you self-employed?
This includes freelancers and business owners
Estimated Tax Breakup
For $ Annual income
Monthly
Annual
Brackets
Rates
Income
$
Deductions
$
Federal income tax
$
Georgia state income tax
$
FICA tax
$
Self Employment tax
$
Total tax
$
Net pay
$
Marginal and average tax rate
Average tax rate is the effective tax rate that you incur on your income. If your income is $100 with 20% average tax rate and 30% marginal tax rate, you pay $20 in taxes.
Average tax rate is the effective tax rate that you incur on your income. If your income marginal tax rate is the tax rate on the last dollar that you earned. If your income is $100 with 20% average tax rate and 30% marginal tax rate and if you get 1 dollar bonus, you pay 30% tax on that bonus.
Average tax rates measure tax burden, while marginal tax rates measure the impact of taxes on incentives to earn, save, invest, or spend.
W2 employees
Freelancers
W2 employees
Freelancers
How will your net pay increase with increase in your income?
Increment percentage
Increased income
Increased net pay
10%
$
$
25%
$
$
50%
$
$
2X
$
$
3X
$
$
4X
$
$
Summary section
- If you make $ a year living in the region of Georgia, USA, you will be taxed $. That means that your net pay will be $ per year, or $0 per month. Your average tax rate is undefined% and your marginal tax rate is undefined%.
- This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of $100 in your salary will be taxed $36.13, hence, your net pay will only increase by $63.87.
Taxes for freelancers vs W-2 employee
The tax system in the US works on a pay-as-you-go basis, so the IRS collects income taxes throughout the year via payroll. Ideally, if you are a W-2 employee, you automatically get your taxes withheld by your employer. However, as a freelancer, taxes aren’t a cakewalk. They have to pay a bit extra in “self-employment tax” to contribute to Social Security and Medicare.
CPA advice for freelancers
If you’re a W-2 employee then most likely, your taxes are already being withheld for you by your employer and you typically get a tax refund. Freelancers, self-employed individuals, and business owners have to handle their own taxes including the quarterly estimated tax payments.
Sounds complicated?
FlyFin can help ease your burden.
With FlyFin you can stay on top of your taxes by paying your quarterly estimated obligations and tracking your business expenses. The A.I. calculates your taxes based on several inputs (your profession & income) and detects all possible deductions which ensures an accurate tax amount.
Tax burden for freelancers vs w2 employees
W2 employees
Freelancers
Freelancers using FlyFin
W2 employees
Freelancers
Freelancers using FlyFin
Income Taxes in Georgia
Taxes vary greatly by state, and each state has its own tax rules and regulations. Taxes are an important factor in determining how much money you get to pocket on the income you earn. The tax rates in Georgia range from 1.00% to 5.75%. Your tax bracket determines the rate you will pay on your taxable income. Georgia’s tax brackets range from $7,000 to $10,001, depending on your filing status. The peach state is known for its relatively moderate property tax rates, and the sales tax rate is on the higher side at 4%.
Tax Facts
Different Types of State Taxes
Tax Rates for Georgia
State income tax
1.00% to 5.75%
Sales Tax
4.00%
Property tax
0.83%
Estate Tax
$0
Tobacco tax
$0.37 per pack
Gasoline tax
29.1 cents per gallon
Who files income taxes in Georgia?
The amount of time you spend living in Georgia determines the type of resident category you fall into. You will need to file a Georgia state income tax return if you meet at least one of the requirements: Full-time resident: You’re a legal resident and spent the year as a resident, even if you left for a short period of time Part-time resident: A portion of the tax year was spent as a resident Non-resident: You don’t live in the state but earn income from the state, such as lottery winnings or rent
Minimum taxes in Georgia
Income tax rates are relatively high in Georgia, and you’ll reach the highest tax bracket once your income reaches $7,001 for single filers and $10,001 for married filing jointly taxpayers. The tax rates do not apply to actual income, but the adjusted gross income or the income after all applicable deductions and exemptions have been subtracted.
Tax brackets for Georgia
Tax brackets function under a progressive tax system. The more money you make, the higher your tax bracket. Your filing status – single, married filing separately (MFS), married filing jointly (MFJ) or head of household (HOH) – also impacts how your income is taxed and the threshold.
Property taxes for Georgia
Owning a property comes with the responsibility of paying property taxes. Property taxes cover costs related to local school districts, police, fire department, parks, sewage systems and the upkeep of roads. In Georgia, property taxes are low compared to other states, with an average rate of 0.83%, making it more affordable to own a property.
Sales taxes in Georgia
Georgia charges a state-levied sales tax rate of 4%, which is relatively low. Counties can add as much as 5%, and the combined rate for state and local sales tax is an average of 7.33%. The state doesn’t charge sales tax on groceries, but counties have the freedom to do this.
Other taxes in Georgia
Many states charge taxes on inheritance, tobacco, gasoline and alcohol. The taxes and tax rates vary by state.
Estate taxes in Georgia
The state of Georgia does not charge a tax for estate or inheritance taxes.
Tobacco taxes in Georgia
The tobacco tax is levied in most states to discourage the number of people buying cigarettes. In Georgia, the tax rate is $0.37 per pack of 20 cigarettes or $3.70 per carton. Cigars are taxed at 23% of the wholesaler’s cost.
Gasoline taxes in Georgia
Georgia’s gasoline and diesel taxes are 29.1 cents per gallon for gasoline and 32.6 cents per gallon for diesel. The gasoline and diesel taxes were suspended for the past ten months and are expected to resume in mid-February of 2023.
Alcohol taxes in Georgia
There are taxes levied on alcohol in an effort for states to raise capital and encourage individuals to lower their overall consumption. In Georgia, alcohol that’s over 190 proof is taxed at 70 cents per liter. Any alcohol produced outside of Georgia is taxed at $1.40 per liter. Counties can also charge a tax on alcohol, up to 22 cents per liter.
