Georgia self-employed net income calculator (Small Business Status)
Your net income under Georgia's Small Business Status is turnover minus a flat 1% tax up to 500,000 GEL of annual turnover, and 3% on the amount above that.
Worked example: with Annual revenue / turnover of 80,000, this model computes Net income / year 79,200. See the full breakdown.
⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22
How small business status in Georgia is calculated
Georgia's Small Business Status is one of the most aggressive freelancer tax regimes anywhere: a flat 1% of gross turnover, with no expense deduction needed because the rate is already this low. It applies up to 500,000 GEL of annual turnover, above which the rate rises to 3% on the excess.
This is not automatic — registering as an individual entrepreneur puts you on the standard 20% regime by default. Small Business Status has to be separately applied for and granted, and not every activity qualifies for it.
Because the tax is charged on turnover rather than profit, the model needs nothing about your costs at all: enter revenue, and the tax follows directly from the two-tier schedule.
Worked example
| Annual revenue / turnover (GEL) | 80000 |
|---|---|
| Small-business tax ✓ | 800 |
| Net income / year ✓ | 79200 |
| Effective rate ✓ | 1 |
Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.
Frequently asked questions
How much net income from 80,000 GEL revenue in Georgia?
At 1% of turnover, tax is 800 GEL, leaving 79,200 GEL net — a 1% effective rate, since the whole amount sits under the 500,000 GEL threshold.
What happens above 500,000 GEL?
The rate rises to 3% on the amount over the threshold, while the first 500,000 GEL stays taxed at 1% — a blended effective rate that creeps toward 3% only far above the threshold.
Do I automatically get the 1% rate as an entrepreneur?
No — the default rate for an individual entrepreneur is 20%. Small Business Status must be separately applied for and approved before the 1%/3% turnover rate applies.
Sources
- Revenue Service of Georgia — Small Business Status · checked 2026-08-22
- Andersen in Georgia — Small-Business Status (1% Tax Regime) · checked 2026-08-22
- IBCCS Tax — Georgia 1% Tax Regime in 2026 · checked 2026-08-22
Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 2 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 2 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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