Atlanta

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Tax Information

Brief on sales tax and other taxes visitors might encounter while making purchases in Atlanta.

Sections

1. Overview of the U.S. Tax System

The United States has a multi-layered tax system that includes federal, state, and local taxes. If you live, work, or own property in Atlanta, Georgia, you will be subject to taxes at the federal, state, and potentially local levels. Taxes are collected by the Internal Revenue Service (IRS) at the federal level, the Georgia Department of Revenue at the state level, and local authorities for specific taxes.

2. Categories of Taxes in Atlanta

A. Federal Taxes

  1. Income Tax:

    • The U.S. federal government imposes income tax on individuals and businesses.
    • Tax rates are progressive, ranging from 10% to 37% depending on your income bracket.
    • Non-residents and immigrants may be subject to different tax rules depending on their visa status and residency.

  2. Social Security and Medicare Taxes (FICA):

    • Employees and employers contribute to Social Security (6.2% each) and Medicare (1.45% each).
    • Self-employed individuals pay both portions (15.3%).

  3. Capital Gains Tax:

    • Tax on profits from the sale of assets like stocks or property.
    • Rates vary based on income and the length of time the asset was held.

B. Georgia State Taxes

  1. State Income Tax:

    • Georgia has a progressive income tax system with rates ranging from 1% to 5.75%.
    • Residents and part-year residents must file a Georgia state income tax return (Form 500).

  2. Sales Tax:

    • Georgia imposes a state sales tax of 4%.
    • In Atlanta, additional local sales taxes bring the total sales tax rate to 8.9% on most goods and services.

  3. Property Tax:

    • Property owners in Atlanta pay property taxes based on the assessed value of their property.
    • The average property tax rate in Fulton County (where Atlanta is located) is approximately 1.08% of the propertyโ€™s assessed value.

  4. Vehicle Tax:

    • Georgia has a Title Ad Valorem Tax (TAVT) for vehicle purchases, which is a one-time tax of 6.6% of the vehicleโ€™s fair market value.

C. Local Taxes

  1. Special Purpose Local Option Sales Tax (SPLOST):

    • Additional sales taxes may be levied for specific local projects, such as transportation or education.

  2. Hotel/Motel Tax:

    • Visitors staying in Atlanta hotels pay a hotel/motel tax of 8%, in addition to the sales tax.

3. Procedures for Paying Taxes

A. Federal Taxes

  1. Filing Federal Income Tax:

    • File your federal income tax return annually by April 15 (or the next business day if it falls on a weekend/holiday).
    • Use IRS Form 1040 for most individual taxpayers.
    • Non-residents may need to file Form 1040-NR.

  2. How to Pay:

    • Online: Use the IRS Direct Pay system or pay via debit/credit card.
    • By Mail: Send a check or money order with your tax return.
    • Installment Plans: If you cannot pay in full, you can set up a payment plan with the IRS.

B. Georgia State Taxes

  1. Filing State Income Tax:

    • File your Georgia state income tax return (Form 500) by April 15.
    • You can file online through the Georgia Tax Center (GTC) or mail a paper return.

  2. How to Pay:

    • Online: Use the Georgia Tax Center (https://gtc.dor.ga.gov).
    • By Mail: Send a check or money order with your tax return.
    • In Person: Visit a Georgia Department of Revenue office.

C. Property Taxes

  1. Billing and Payment:

    • Property tax bills are typically sent out in the fall and are due by December 31.
    • Payments can be made online, by mail, or in person at the Fulton County Tax Commissionerโ€™s Office.

  2. How to Pay:

    • Online: Use the Fulton County Tax Commissionerโ€™s website.
    • By Mail: Send a check or money order with your tax bill.
    • In Person: Visit the Fulton County Tax Commissionerโ€™s Office.

D. Sales Tax

  • Sales tax is automatically added to purchases at the point of sale. No additional action is required from consumers.

4. Currency Considerations

  • All taxes in Atlanta must be paid in U.S. dollars (USD).
  • If you are an immigrant or visitor, ensure that your bank account or payment method supports USD transactions.
  • For international payments, the IRS and Georgia Department of Revenue accept wire transfers and payments via credit/debit cards.

5. Local Resources for Tax Assistance

A. IRS Resources

  1. IRS Atlanta Office:

    • Address: 401 W Peachtree St NW, Atlanta, GA 30308
    • Services: Taxpayer assistance, payment plans, and general inquiries.
    • Website: www.irs.gov

  2. Volunteer Income Tax Assistance (VITA):

    • Free tax preparation services for low-income individuals, seniors, and non-English speakers.
    • Locations vary; check the IRS website for details.

B. Georgia Department of Revenue

  1. Georgia Tax Center (GTC):

  2. Atlanta Regional Office:

    • Address: 1800 Century Blvd NE, Atlanta, GA 30345
    • Services: Assistance with state tax filings and payments.

C. Local Tax Professionals

  1. Certified Public Accountants (CPAs):

    • CPAs in Atlanta can help with tax preparation, planning, and compliance.
    • Look for CPAs with experience in both federal and Georgia state taxes.

  2. Tax Preparation Services:

    • Companies like H&R Block, TurboTax, and Jackson Hewitt have offices in Atlanta and offer tax preparation services.

D. Legal Aid and Advocacy

  1. Georgia Legal Aid:

  2. Low-Income Taxpayer Clinics (LITCs):

    • Offer free or low-cost assistance for disputes with the IRS.
    • Check the IRS website for a list of LITCs in Georgia.

6. Tips for Managing Taxes in Atlanta

  1. Keep Records:

    • Maintain organized records of income, expenses, and tax documents (e.g., W-2s, 1099s, receipts).

  2. Understand Residency Rules:

    • If you are an immigrant or non-resident, familiarize yourself with the IRSโ€™s Substantial Presence Test to determine your tax obligations.

  3. Use Tax Software:

    • Software like TurboTax or H&R Block can simplify the filing process for both federal and state taxes.

  4. Seek Professional Help:

    • If your tax situation is complex, consult a CPA or tax attorney.

  5. Stay Informed:

    • Tax laws change frequently. Check the IRS and Georgia Department of Revenue websites for updates.

By following this guide, you should have a clear understanding of your tax responsibilities in Atlanta, Georgia, and the resources available to help you navigate the process. Let me know if you need further assistance!