Georgia 1% Tax Calculator
For an Individual Entrepreneur with Small Business Status. Enter what you earn and see what you would actually pay — including the 3% rule that applies once you pass 500,000 GEL, and the monthly declaration you have to file.
Converted at the National Bank of Georgia rate of 17 October 2026 — ₾155,892.
Only used for the 20% comparison — the 1% regime taxes turnover, so expenses do not reduce it.
Small Business Status
$600
Effective rate 1%
Standard 20% regime
$12,000
On $60,000 of taxable income
You file a declaration every month, by the 15th of the following month. On this income that averages $50 per declaration.
- Your turnover is above the $38,488 VAT threshold, so you must register for VAT within 2 business days of crossing it. VAT registration does not end Small Business Status — the two run alongside each other.
The link keeps your figures, so you can save or send this exact result.
How the 1% regime works
Georgia taxes an Individual Entrepreneur with Small Business Status at 1% of turnover, not profit. That single difference decides whether the regime is right for you: it is unusually good for freelancers, consultants and software developers whose costs are low, and unattractive for businesses that buy and resell goods, because you cannot deduct what you spend.
Two thresholds matter, and they are measured over different periods, which is the most common source of confusion:
- 500,000 GEL per calendar year — the Small Business Status limit. Cross it and your rate becomes 3%.
- 100,000 GEL over any 12 consecutive months — the VAT registration threshold. This one is a rolling window, so you can hit it mid-year.
The 3% rule most calculators get wrong
It is widely written that income above 500,000 GEL is taxed at 3%. That is not quite what Article 90(2) says. Once you cross the limit, the 3% rate applies to the whole of the month in which you crossed it, and every month after it until the end of the calendar year — not merely to the excess.
The practical consequence is that when you cross matters as much as whether you cross. Passing 500,000 GEL in March is considerably more expensive than passing it in November, even on identical annual turnover. The calculator above models this month by month.
What you have to do every month
Small Business Status is not a file-and-forget regime. Article 93(1¹) requires a declaration every month, filed and paid by the 15th of the following month. Miss them and you accumulate penalties. There is more detail in our guide to monthly declarations, and a walkthrough of getting set up in the registration guide.
Frequently asked questions
Yes, but it applies to turnover rather than profit. An Individual Entrepreneur with Small Business Status pays 1% of gross income under Article 90(1) of the Tax Code, and business expenses are not deductible. That makes it excellent for high-margin work such as freelancing or consulting, and much less attractive for low-margin businesses that resell goods.
Article 90(2) raises the rate to 3%. The detail most sources miss is that the 3% is not charged only on the amount above the limit: it applies to the entire month in which you crossed the limit and to every remaining month of the calendar year. Turnover earned before that month stays at 1%. If you exceed the limit in two consecutive calendar years, Article 89(2)(a) revokes your Small Business Status from the start of the following year.
Monthly. Article 93(1¹) requires the declaration to be filed and the tax paid no later than the 15th day of the month following the accounting month. There is no quarterly option.
If your VAT-taxable supplies exceed 100,000 GEL over any 12 consecutive calendar months, Article 165(1) requires you to apply for VAT registration within 2 business days. Note that this window is 12 rolling months, not the calendar year used for the Small Business Status limit, so the two thresholds can be crossed at different times. VAT registration does not end Small Business Status — Article 92 assumes the two coexist.
Not automatically. Under Article 3(3) of the Law on Funded Pensions, joining is voluntary for self-employed people, so an Individual Entrepreneur is not enrolled by default. A self-employed person who does opt in contributes 4% of their income.
No. Article 88(2) lets the Government bar particular activities, and consulting, legal, medical and audit work are commonly cited as excluded. That list lives in a Government resolution published only in Georgian, so we cannot verify its current contents against an English primary source — confirm your specific activity with the Revenue Service before relying on it.
Possibly, if you earn under 30,000 GEL a year. Micro Business status pays no income tax at all under Article 86, but it requires you to work without hired labour and to stay under a 45,000 GEL inventory balance.
Where these numbers come from
Verified on against the primary sources listed below. This is information, not legal or tax advice. Rules change and individual circumstances differ — confirm anything you intend to act on with the Revenue Service or a qualified adviser.
Not fully verifiable
Some details on this page could not be confirmed against an English-language primary source and are marked as indicative where they appear.
Important caveats
- The 1% and 3% rates apply to turnover (gross income), not profit. Business expenses are not deductible under this regime.
- Only income from a Georgian source is taxed under this regime, and salary income is excluded (Article 90(3)).
- Losses cannot be carried forward to the next year (Article 91(5)).
- The 20% standard rate applies to taxable income (after allowable deductions), whereas Small Business Status applies to gross turnover. A like-for-like comparison must account for that difference.
- The VAT threshold is measured over any 12 consecutive calendar months, not the calendar year used for the Small Business Status limit. The two can be crossed at different times.
- VAT registration does not by itself end Small Business Status; the 1% regime and VAT registration can coexist (Article 92).
- Exports and certain exempt supplies are treated specially when measuring the threshold (Article 165(7)).
- Participation is voluntary for self-employed persons, so an Individual Entrepreneur is not automatically enrolled.
- This list could not be verified against an English primary source: Resolution No 415 is published in Georgian only.
- Treat it as indicative. Confirm your specific activity with the Revenue Service (rs.ge) before relying on it.
Sources
- Tax Code of Georgia — Article 90, Taxable income of small business and tax rates — Article 90(1)-(3)
- Tax Code of Georgia — Article 88, Small business — Article 88(2)-(3)
- Tax Code of Georgia — Article 89, Granting the status of small business — Article 89(2)-(5)
- Tax Code of Georgia — Article 93, Filing micro and small business tax returns — Article 93(1^1)
- Tax Code of Georgia — Article 91, Principles of accounting for small business income and costs — Article 91(1), 91(5)
- Tax Code of Georgia — Article 81, Tax rate — Article 81(1)
- Tax Code of Georgia — Article 165, Registration as a VAT taxpayer — Article 165(1)
- Tax Code of Georgia — Article 166, VAT rate — Article 166
- Tax Code of Georgia — Article 92, Registration of a small business as a VAT payer — Article 92(1)
- Tax Code of Georgia — Article 84, Micro business — Article 84(1)
- Tax Code of Georgia — Article 86, Exemption of a micro business from tax — Article 86
- Tax Code of Georgia — Article 85, Granting the status of a micro business — Article 85(2)(b)-(c)
- Tax Code of Georgia — Article 93, Filing micro and small business tax returns — Article 93(1)
- Law of Georgia on Funded Pensions — participation — Article 3(3)
- Law of Georgia on Funded Pensions — self-employed contribution — Article 3(6)(d)
- Tax Code of Georgia — Article 88(2) (the delegation, primary) — Article 88(2)
- Government of Georgia Resolution No 415 (29.12.2010), On Special Taxation Regimes — Georgian text only, no English translation published