Web Developer Taxes in Georgia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Georgia

Georgia’s thriving tech scene offers web developers exciting opportunities, but navigating the tax landscape as a freelancer requires careful planning. As a self-employed individual, understanding both federal and state tax obligations is crucial for financial success.

The IRS requires all self-employed individuals, including web developers, to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure compliance and maximize potential deductions.

How Georgia Handles Gig Worker Taxes

As a resident of Georgia, a state income tax return is required, even if no state income tax is ultimately due. Georgia operates under a flat income tax rate system, meaning all income is taxed at the same percentage. For the 2025 tax year, the current flat income tax rate is 5.49%. This rate is subject to change, so staying updated with the Georgia Department of Revenue is essential. Self-employed web developers will primarily use Form 540, Individual Income Tax Return, to report their income and calculate their state tax liability. This form requires reporting net profits from Schedule C as part of your overall adjusted gross income. Georgia also allows for certain deductions and credits that can reduce your tax burden. It’s important to note that Georgia does not have a local income tax, simplifying the filing process compared to some other states. Georgia also offers options for estimated tax payments, which are generally required if you expect to owe $1,000 or more in state income tax. Failing to make timely estimated payments can result in penalties. Resources and forms can be found on the Georgia Department of Revenue website: https://dor.georgia.gov/. Understanding these nuances is vital for accurate tax filing and avoiding potential issues with the state.

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: The home office deduction allows web developers to deduct expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is used solely for work, and not for personal activities. “Regular use” implies consistent and frequent use for business purposes. Taxpayers can choose between the simplified method, which offers a standard deduction of $5 per square foot of the home used for business (capped at 300 square feet), or the actual expense method. The actual expense method requires calculating the percentage of the home used for business and deducting a proportionate share of mortgage interest, rent, utilities, insurance, and depreciation.
• Hardware & Software: The cost of essential hardware, such as computers, monitors, and cameras, directly used for web development work is deductible. Software expenses, including subscriptions to tools like Adobe Creative Cloud, web hosting services, and development environments, are also deductible.
• Internet & Phone Bill: If a portion of your internet and phone service is used for business, you can deduct the business-use percentage. For example, if 60% of your internet usage is for client work, you can deduct 60% of your internet bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel directly related to client meetings, attending industry events, or procuring supplies for your business can be claimed using the standard mileage rate or actual expenses.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. You are responsible for paying both portions as a self-employed individual. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).