Georgia individual entrepreneur tax calculator 2026
How much an individual entrepreneur (IE) in Georgia pays in 2026 — small business status at 1%, micro business at 0% and the regular 20% regime, side by side. Built on the Tax Code of Georgia.
Your income
Results are in GEL. Income is converted at an approximate exchange rate — the Revenue Service uses the National Bank rate on the day you receive the money. Same turnover every month.
Small business (1%)
1% of turnover, 3% after GEL 500,000 a year
- Turnover per year
- GEL 156,696
- Expenses
- -GEL 9,402
- Tax
- -GEL 1,567
Micro business (0%)
No tax up to GEL 30,000 a year, no employees
- Turnover per year
- GEL 156,696
- Expenses
- -GEL 9,402
- Tax
- GEL 0
Not available: micro business status is limited to turnover of GEL 30,000 a year.
Regular IE (20%)
20% of profit after documented expenses
- Turnover per year
- GEL 156,696
- Expenses
- -GEL 9,402
- Tax
- -GEL 29,459
How individual entrepreneurs are taxed in Georgia in 2026
Rules for a registered individual entrepreneur (IE) — the usual setup for freelancers and IT specialists who relocate to Georgia.
Small business status: 1%
1% of turnover with no deductions, monthly return and payment by the 15th of the next month. Once turnover in a calendar year exceeds GEL 500,000, the rate is 3% from that month until the end of the year; exceeding it two years in a row ends the status. Services to foreign clients count as Georgian-source income and are taxed at 1%. Not allowed for consulting, audit, legal, medical and architectural activity, licensed activities and currency exchange; royalties, rent, interest and dividends are taxed under general rules.
Regular IE and micro business
Without a special status an IE pays 20% on profit (income minus documented business expenses), files an annual return by 1 April and pays advances on 15 May, 15 July, 15 September and 15 December. Micro business status means 0% tax for turnover up to GEL 30,000 a year, no employees and one annual return — but it is not available for trade, consulting and some other activities.
VAT and pension
VAT registration (18%) is mandatory once taxable supplies in Georgia exceed GEL 100,000 in 12 months; services to foreign business clients are supplied abroad and are not subject to Georgian VAT. Careful: services you buy from foreign suppliers can trigger 18% reverse-charge VAT even without VAT registration. The funded pension is voluntary for an IE: 4% of income, the state adds up to GEL 840 a year.
Examples: how much you keep in Georgia
Turnover in USD per month, expenses 10% of turnover, no pension contribution. Result in GEL per year.
| Turnover / month | Small business (1%) | Micro business (0%) | Regular IE (20%) |
|---|---|---|---|
| US$1,500 | GEL 41,838 | — | GEL 33,846 |
| US$3,000 | GEL 83,675 | — | GEL 67,693 |
| US$5,000 | GEL 139,459 | — | GEL 112,821 |
| US$8,000 | GEL 223,135 | — | GEL 180,513 |
| US$15,000 | GEL 418,377 | — | GEL 338,463 |
| US$20,000 | GEL 554,702 | — | GEL 451,283 |
Sources: Tax Code of Georgia (articles 80–94, 104, 159–166, as of 25.06.2026), Law on Funded Pensions, Government Resolution No. 415. Estimate, not tax advice.
Frequently asked questions
How much tax does an individual entrepreneur pay in Georgia in 2026?
With small business status — 1% of turnover. With USD 5,000 a month (about GEL 13,000) that is about GEL 130 a month. Above GEL 500,000 of turnover in a year the rate becomes 3% from that month. Without the status an IE pays 20% of profit.
Do IT specialists working for foreign clients pay 1%?
Yes — services a Georgian tax resident supplies to foreign clients are Georgian-source income and fall under the 1% regime. The exception is consulting, which is not allowed for small business status: 'IT consulting' is a grey area, while software development is usually accepted. Royalties for software licences are taxed under general rules, not at 1%.
What happens if my turnover goes over GEL 500,000?
From the month in which your cumulative turnover for the calendar year exceeds GEL 500,000, the rate becomes 3% until the end of the year. You keep the status the next year; if you exceed GEL 500,000 in two consecutive years, the status is revoked from 1 January of the following year.
Do I need to pay VAT in Georgia as an IE?
Only if your taxable supplies in Georgia exceed GEL 100,000 in any 12 months — then registration is mandatory within 2 business days. Services to foreign business clients are supplied abroad, so they are not subject to Georgian VAT. Watch out for reverse-charge VAT on services you buy from abroad.
Is the pension contribution mandatory for an individual entrepreneur?
No. Joining the funded pension scheme is voluntary for the self-employed. If you join, you pay 4% of your income and the state adds 2% on the first GEL 24,000 and 1% on GEL 24,000–60,000 (up to GEL 840 a year).