Georgia 1099 taxes: a 2026 guide for the self-employed
Keeper StaffKeeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.
Krislyn ChanKrislyn is Chief Growth Officer at Keeper. At Keeper, she strives to make expert-level tax strategies that used to require a traditional CPA accessible to all. Prior to Keeper, she was at Curology, where she helped bring custom, prescription-grade skincare out of the dermatologist's office to millions of faces.
Key takeaways
- 1099 income in Georgia is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and a flat 4.99% Georgia income tax.
- Set aside 25–30% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 21.3% of profit at $40,000 to 31.0% at $200,000.
- Georgia cut its income tax rate and raised its standard deduction for 2026. The rate dropped from 5.19% to 4.99%, and the standard deduction rose to $15,000 ($30,000 married filing jointly), both retroactive to January 1.
- Georgia’s penalty bar is lower than the IRS’s. You avoid a penalty by paying 70% of this year’s Georgia tax through quarterly estimated tax payments, not 90%.
- No local income tax. Georgia cities and counties don’t tax income, though many charge a business license or occupation tax.
How much tax do 1099 workers pay in Georgia?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Georgia income tax |
|---|---|---|---|---|---|
| $40,000 | $8,533 | 21.3% | $5,652 | $1,775 | $1,106 |
| $60,000 | $14,071 | 23.5% | $8,478 | $3,559 | $2,034 |
| $80,000 | $19,609 | 24.5% | $11,304 | $5,344 | $2,961 |
| $100,000 | $26,254 | 26.3% | $14,130 | $8,235 | $3,889 |
| $150,000 | $43,815 | 29.2% | $21,194 | $16,413 | $6,208 |
| $200,000 | $61,958 | 31.0% | $28,234 | $25,196 | $8,527 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Georgia income tax |
|---|---|---|---|---|---|
| $40,000 | $6,408 | 16.0% | $5,652 | $398 | $358 |
| $60,000 | $11,648 | 19.4% | $8,478 | $1,885 | $1,285 |
| $80,000 | $17,067 | 21.3% | $11,304 | $3,550 | $2,213 |
| $100,000 | $22,605 | 22.6% | $14,130 | $5,335 | $3,140 |
| $150,000 | $36,449 | 24.3% | $21,194 | $9,795 | $5,459 |
| $200,000 | $52,485 | 26.2% | $28,234 | $16,472 | $7,779 |
How Georgia taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in Georgia, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- Georgia income tax: a flat 4.99% on your profit minus half of your self-employment tax and a $15,000 standard deduction ($30,000 married filing jointly). You report it on Form 500.
What’s different about Georgia
- A big standard deduction. Georgia’s $15,000 is close to the IRS’s $16,100, so the first $15,000 of your income isn’t taxed by Georgia. There’s no personal exemption, but each dependent gets $5,000, up from $4,000.
- No QBI deduction. The IRS lets you deduct up to 20% of your business profit. Georgia doesn’t. At $80,000 of profit, that’s $11,650 you deduct on your federal return but still pay Georgia tax on.
- Some federal deductions carry over. Because Georgia starts with the income on your federal return, three deductions you take there also lower your Georgia tax: half of your self-employment tax, self-employed health insurance premiums, and self-employed 401(k) contributions.
- The rate keeps falling. Starting in 2027, Georgia plans to cut its rate by 0.125 points a year until it reaches 3.99%.
A self-employed person in Georgia at $80,000 pays $19,609: about $348 more than in California and $2,961 more than in Texas, which has no income tax.
Example: Georgia tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in Atlanta with $80,000 of profit and no other income.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| Income Georgia taxes: $74,348 minus the $15,000 standard deduction | $59,348 |
| Georgia income tax: 4.99% | $2,961 |
| Total 2026 tax | $19,609 (24.5%) |
Self-employment tax is the biggest piece. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and Georgia income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your Georgia 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $277 from your total tax. Common write-offs for self-employed people in Georgia include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeGeorgia estimated tax payments
If you expect more than $1,000 of income in 2026 with no Georgia tax taken out, beyond your deductions, make estimated payments to the Georgia Department of Revenue online or with Form 500-ES. They’re due on the same dates as your federal payments, and each is a quarter of your Georgia tax:
| Payment | Share of your Georgia tax | Due date |
|---|---|---|
| 1st | 25% | April 15, 2026 |
| 2nd | 25% | June 15, 2026 |
| 3rd | 25% | September 15, 2026 |
| 4th | 25% | January 15, 2027 |
- Federal payments are separate: you pay the IRS on the same four dates with Form 1040-ES.
- To avoid a penalty for paying too little, pay at least 70% of this year’s Georgia tax or 100% of last year’s, whichever is less. That’s a lower bar than the IRS’s 90%, and there’s no 110% rule for higher earners.
- Your Georgia return is due April 15, 2027, the same day as your federal return.
Get your payment amounts with the Georgia quarterly tax calculator.
Should you form an LLC or S corp in Georgia?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above. Georgia is cheap to set one up:
- LLCs cost $110 to form and $60 a year to keep active (the annual registration, due April 1), including the state’s $10 service charge.
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax.
Run the numbers for your income to see what you’d save.
Do self-employed people in Georgia charge sales tax?
Usually not. Georgia sales tax applies to physical goods, not to most services like writing, design, consulting, and bookkeeping. If you sell products, the state rate is 4%, and local sales taxes bring the total to 6% to 8.9%.
8 sources
- Gov. Kemp signs legislation lowering taxes (HB 463) · gov.georgia.gov
- Important tax updates (Georgia DOR) · dor.georgia.gov
- 2026 employer’s withholding tax guide (rate and standard deduction) · dor.georgia.gov
- Form 500-ES: estimated tax for individuals and fiduciaries · dor.georgia.gov
- O.C.G.A. § 48-7-120: underpayment of estimated tax · law.justia.com
- Corporations Division filing fees (Georgia Secretary of State) · sos.ga.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
