Selling a business in Georgia: what the state takes (2026)
Georgia’s top individual income tax rate is 4.99%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 4.99%
- Top Georgia income tax rate (2026)
- $1,247,500
- State tax on a $25M long-term gain
- 28.8%
- Combined federal and state rate on $25M
- 21 of 51
- Rank by total tax on $25M (1 = highest)
How Georgia taxes a business sale
- Income tax
- Top rate 4.99%: Flat rate on all Georgia taxable income.
- Long-term capital gains
- Capital gains are taxed as ordinary income at the flat 4.99% rate; no exclusion or preferential rate.
- Entity-level taxes
- S corporations generally pass income through; Georgia has an elective pass-through entity tax. HB 463's title also reduces the corporate and partnership income tax rates in line with the individual cut.
- Local taxes
- No local income taxes.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Georgia tax | $499,000 | $1,247,500 | $2,495,000 |
| Total tax | $2,879,000 | $7,197,500 | $14,395,000 |
| Effective combined rate | 28.79% | 28.79% | 28.79% |
| Net proceeds after tax | $7,121,000 | $17,802,500 | $35,605,000 |
| Extra tax versus Texas | $499,000 | $1,247,500 | $2,495,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Georgia tax
- $1,247,500
- Taxable gain at 4.99%
- $1,247,500
- Total tax
- $7,197,500
- Effective rate on the gain
- 28.79%
- Net proceeds after tax
- $17,802,500
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- Alabama27.6% combined, $18.10M net
- Florida23.8% combined, $19.05M net
- North Carolina27.8% combined, $18.05M net
- South Carolina26.7% combined, $18.32M net
- Tennessee23.8% combined, $19.05M net
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
Methodology and sources
Georgia figures are for tax year 2026. HB 463 (Georgia Economic Growth and Tax Relief Act of 2026, signed May 2026) cut the flat rate from 5.19% to 4.99% for taxable years beginning on or after January 1, 2026, retroactively. Tax Foundation's 2026 table predates the bill and still shows 5.19%. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1HB 463 (AS PASSED HOUSE AND SENATE), amending O.C.G.A. 48-7-20(a.1)
- 2Office of the Governor, HB 463 signing (lowers rate from 5.19% to 4.99% beginning January 1, 2026)
- 3EY Tax News, Georgia law lowers individual income tax rate retroactive to January 1, 2026. Secondary source
- 4Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
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Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Georgia,” 2026, https://laurent.capital/research/seller-tax-map/georgiaLink (HTML)
<a href="https://laurent.capital/research/seller-tax-map/georgia">The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Georgia</a> (Laurent Capital)Planning a sale and weighing the tax cost?
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