Does Georgia have an estate tax?

| Oct 30, 2020 | Estate Tax |

If you amassed significant wealth in Georgia, you may wonder if you will have to pay estate taxes. Estate taxes can significantly increase the cost of death, especially for the wealthy, which is why many individuals take proactive measures to avoid them.

The good news is that Georgia no longer levies estate taxes. According to the Georgia Department of Revenue, state legislature enacted the law that eliminated estate taxes on July 1st, 2014.

Provisions of O.C.G.A. § 48-12-1

As of July 2014, estates in Georgia no longer have to file estate tax returns or pay estate taxes. However, this privilege only applies to estates whose decedents passed away before January 1st, 2005. The law does not forgive any tax liabilities, interest or penalties associated with an estate whose owner died prior to January 1st, 2005. Likewise, the state must issue refunds to estates that merit them if the estate’s return was filed before the January cutoff date. Georgia’s estate taxes for estates whose decedent’s passed away before January 1st, 2005, adhere to the guidelines set forth by federal estate tax law.

If the decedent of the estate in question committed any estate tax violations prior to the enactment of the law in 2014, the state may seek remedies. Remedies may come in the form of punishment, penalty, prosecution, administrative proceedings or civil action.

Inheritance taxes in Georgia

If you inherited assets from a deceased loved one, you may wonder if you have to pay taxes on the property. The good news is that Georgia does not have an inheritance tax either. If the decedent died on or before December 31st, 2004, his or her estate should have paid the taxes on the asset or assets before the distribution of the estate.