Georgia taxes capital gains as ordinary income — up to 5.19% — stacked on top of federal tax, so selling appreciated real estate can cost roughly ~29.0% of the gain. A 1031 exchange into a Delaware Statutory Trust lets Georgia investors defer that combined bill and trade active landlording for passive institutional real estate.
The Georgia tax math
Here's the tax stack on a long-held rental sold for a $1.5M gain (excludes depreciation recapture, taxed separately at up to 25%):
| On a $1.5M gain | Tax |
|---|---|
| Federal long-term capital gains (20%) | $300,000 |
| Net investment income tax (3.8%) | $57,000 |
| Georgia income tax (5.19%) | $77,850 |
| Total if you simply sell | $434,850 |
| Tax if you 1031 into a DST | $0 deferred |
In Georgia's top bracket, roughly the combined rate above goes to tax if you sell outright — versus $0 now with a qualifying 1031 exchange. Run your Georgia numbers →
Georgia 1031 rules
Rules summarized as of 2026 — verify with your tax advisor.
Conforms to federal §1031
Georgia conforms to IRC §1031, so a qualifying exchange defers Georgia tax as well as federal tax.
Withholding at sale
Georgia may require nonresident withholding at closing; a qualifying 1031 exchange generally defers it. Confirm specifics with your closing agent.
How gains are taxed
Taxed as ordinary income — up to 5.19%.
Georgia market snapshot
Illustrative — wire to a market-data feed; refreshed quarterly.
Baker 1031 in Georgia
Realized (acquired, held, sold) programs on Georgia assets. Joined from full-cycle-deals.csv; sponsor-reported, net-to-investor, not independently verified; past performance ≠ future results.
| Program | Sponsor | Avg annual | Equity × | Hold |
|---|---|---|---|---|
| The Ashford — Atlanta | Bluerock | 30.40% | 2.05x | 1.92 yr |
| Dollar General – Midway, GA — Midway | Four Springs | 7.75% | 1.17x | 2.21 yr |
| Dollar General – Savannah, GA — Savannah | Four Springs | 7.26% | 1.09x | 1.29 yr |
| Family Dollar – Milledgeville, GA — Milledgeville | Four Springs | 7.75% | 1.04x | 0.53 yr |
| Arbor Terrace — Marietta | Bluerock | 7.80% | 1.27x | 2.83 yr |
| TEI Peachtree 25th TIC — Atlanta | Time Equities | 4.19% | 1.16x | 9.74 yr |
| Estates at Perimeter — Augusta | Bluerock | 2.50% | 1.25x | 4.17 yr |
| Fairfield Inn – Valdosta, GA — Valdosta | Peachtree Group | 27.00% | 2.11x | 3.72 yr |
See every Georgia deal in the Data Center →
Current offerings for Georgia investors
| Offering | Sponsor | Type | Status |
|---|---|---|---|
| BR Parkview Multifamily, DST | Bluerock | Multifamily | Available |
| ExchangeRight Net-Leased Portfolio 75 DST | ExchangeRight | Net Lease | Limited Availability |
| PG Savannah Industrial DST | Peachtree Group | Industrial | Available |
| JWCM Vivian DST | JWCM | Multifamily | Available |
| ExchangeRight Essential Income 9 DST | ExchangeRight | Net Lease | Closed |
DST sponsors based in Georgia
Learn more
Georgia FAQ
What is the capital gains tax rate in Georgia?
Georgia taxes capital gains as ordinary income, up to 5.19%, with no separate long-term rate. Combined with the federal 20% rate and the 3.8% net investment income tax, a high-bracket Georgia seller can face roughly ~29.0% on a real estate gain.
Does Georgia recognize 1031 exchanges?
Yes. Georgia conforms to IRC §1031, so a properly structured exchange defers Georgia tax as well as federal tax.
Why use a 1031 exchange in Georgia?
To defer the tax on a large gain (up to about ~29.0% combined) and move from active landlording into passive, professionally managed real estate while keeping your full equity invested. These are Regulation D offerings for accredited investors.
Disclosures
This page is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. State tax and 1031 rules summarized here are general, current as of 2026, and not tax advice — verify with your CPA and attorney. For accredited investors only. Representatives may transact business only in states where registered or exempt. Securities offered through Aurora Securities, Inc., member FINRA/SIPC; Baker 1031 Investments, LLC is independent of Aurora. Performance shown is sponsor-reported, realized programs only, net of fees, not independently verified, and not indicative of future results.