State Incentives

ga-taxes

Click here to get an up-to-date overview of all state incentives.

Business in Newton County, as well as the entire state of Georgia, are subject to a number of state and local taxes. Expand the table below to see a summary of tax liabilities, followed by more detailed descriptions of each tax.

Job Tax Credit

Tier refers to the economic well-being of a county.

Joint Development Authority

Qualifies for an additional $500 per job tax credit.

For forms and more information on Job Tax Credits and others, visit https://etax.dor.ga.gov/inctax/taxcredits.aspx

 

Corporate Net Income

Georgia’s moderate corporate income tax rate (6 percent) has not changed since 1969. This tax applies only to the portion of income that is earned in Georgia. Earnings in Georgia have in the past been calculated using weightings of gross receipts, property and payroll.

Beginning in 2006, tax liability calculations became more heavily weighted on gross receipts in Georgia. The other component weightings that currently have bearing on tax liability, property and payroll, decreased each year (starting in 2006) and was eliminated from the calculation in 2008. A schedule of tax liability weighting is shown below.

Income Tax Rate (%)

2005 2006 2007 2008
Gross Receipts 50 80 90 100
Property 25 10 5 0
Payroll 25 10 5 0


Real and Personal Property

 

Sales Tax

Georgia companies pay a 4% state sales tax at the time of purchase. This applies to purchases (other than real estate) delivered or stored in Georgia to be used or consumed in the business (not for resale). This includes natural gas, oil, gasoline, telephone, artificial gas, steam, electricity and rentals.

In order to reduce property taxes, all Georgia counties have adopted an additional local 1% sales tax. Some local jurisdictions levy an additional special purpose sales tax of up to 3%.

Newton County’s sales tax rate is 7%.

Corporate Net Worth (Franchise Tax)

The annual tax based on net worth (capital stock plus retained earnings) is called a license or occupation tax in Georgia. Most states refer to the tax on net worth either as a franchise or a privilege tax.

Domestic operations are taxed on 100% of net worth. Foreign (out of state) corporations are taxed on net worth apportioned to Georgia, determined by the following formula:

Corporate Net Worth

Net Worth in Georgia   Annual Tax
$22,000,000+ $5,000
$12,000,000+ $4,000
$4,000,000 $1,000
$100,000 $100

 

 

Workers’ Compensation

Personal Income Tax

 

Payroll or Employment Taxes

Payroll taxes are levied at the federal and state levels. If a company has employees, it is responsible for several taxes that must be withheld from an employee’s paycheck. Tax include:

  • Federal income tax withholding
  • State income tax withholding
  • Social Security and Medicare taxes

For a more complete listing and description on Payroll or Employment taxes on the Federal level, visit www.irs.gov, and on the state level visit www.dol.state.ga.us/.

Newton Covington Economic Development

Newton Covington Economic Development