How to Pay Georgia Estimated Taxes?

This guide will walk you through the process of determining your estimated tax liability, making payments, and understanding key deadlines to ensure compliance with Georgia tax laws.

How to Pay Georgia Estimated Taxes

Estimated tax is used to pay income tax on income that is not subject to withholding. This includes earnings from self-employment, interest, dividends, rent, and other sources. Paying estimated taxes is an essential responsibility for individuals and businesses in Georgia who expect to owe state income tax of $500 or more when they file their annual returns.

You must make estimated tax payments if:

  • You are self-employed or have income not subject to state withholding.
  • You expect to owe at least $500 in state income tax after subtracting withholding and credits.
  • Your withholding and credits are less than 90% of the tax expected on your current year’s return or 100% of the tax shown on your previous year’s return, whichever is smaller.

How to Calculate Georgia Estimated Taxes?

To calculate your estimated tax, follow these steps:

  1. Estimate Your Income: Project your total income for the year, including wages, self-employment income, interest, dividends, and any other sources.
  2. Determine Deductions and Credits: Subtract any allowable deductions and credits from your estimated income to arrive at your taxable income.
  3. Apply the Tax Rate: Use the current Georgia state tax rates to calculate your estimated tax liability. The rates for 2024 range from 1% to 5.75%, depending on your income level.
  4. Divide the Tax Liability: Divide your total estimated tax liability by four to determine the amount of each quarterly payment.
How to Make An Estimated Tax Payment in Georgia

How to Make An Estimated Tax Payment in Georgia?

There are several ways to make estimated tax payments to the Georgia Department of Revenue:

  1. Electronic Payments: The easiest and most efficient method is to make payments online through the Georgia Tax Center (GTC) at https://gtc.dor.ga.gov. You can schedule payments in advance, ensuring timely compliance.
  2. Payment Vouchers: If you prefer to mail your payments, use Form 500-ES, Estimated Tax Payment Voucher. Complete the voucher and mail it along with your check or money order to the address provided on the form.
  3. Credit Card Payments: Georgia allows you to pay your estimated taxes using a credit card through the GTC or other approved payment processors listed on the Department of Revenue’s website.
  4. Direct Debit: When filing your individual income tax return electronically, you can opt for direct debit, allowing the Department of Revenue to withdraw the amount due directly from your bank account.

Deadlines for Georgia Estimated Tax Payments

Estimated tax payments are due in four equal installments throughout the year. For the current tax year, the due dates are as follows:

  • First Quarter: April 15
  • Second Quarter: June 15
  • Third Quarter: September 15
  • Fourth Quarter: January 15 of the following year

If the due date falls on a weekend or holiday, the payment is due the next business day.