2026 tax year · Georgia
Marketplace seller taxes in Georgia
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is your costs, in Georgia that gap is worth $7,229 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what Georgia and the IRS charge against.
What that leaves you owing in Georgia
Georgia taxes income at a flat 5.19% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| Georgia income tax | $879 |
| Total tax | $3,521 |
| Effective rate on gross | 7.8% |
Earning more in Georgia
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Georgia tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $724 | $2,843 | 19.0% |
| Steady side income | $45,000 | $0 | $45,000 | $2,171 | $10,750 | 23.9% |
| Full-time | $72,000 | $0 | $72,000 | $3,473 | $18,276 | 25.4% |
Georgia specifics that change the number
On the 2026 rate itself: rate was 5.39%, reduced to 5.19% mid-2025. Further phasedowns planned.
Selling into and out of Georgia
Income tax follows you: Georgia taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Georgia would charge:
| State | Its tax | vs Georgia |
|---|---|---|
| Florida | No income tax | −$946 |
| Tennessee | No income tax | −$946 |
| South Carolina | $363 | −$583 |
| North Carolina | $727 | −$219 |
| Alabama | $871 | −$75 |
- Florida has no income tax at all, so the same work done there costs $946 less in state tax than it does in Georgia.
- Tennessee has no income tax at all, so the same work done there costs $946 less in state tax than it does in Georgia.
- South Carolina would take $583 less, $363 against Georgia's $946.
- North Carolina would take $219 less, $727 against Georgia's $946.
- Alabama would take $75 less, $871 against Georgia's $946.
Marketplace seller tax questions in Georgia
How much should a Georgia seller set aside?
About 7.8% of gross on the $45,000 example, $3,521 across self-employment tax, federal income tax and $879 to Georgia. In practice that means moving about $78 of every $1,000 payout into a separate account the day it lands, and sending roughly $880 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Georgia taxes?
No. Georgia taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Georgia bill is $879 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 60% of the gross never becomes taxable income, but only for the seller who kept the records to prove it.