Clarification on Georgia Tax Withholding and Additional Tax Due on Sale of Property

[HE1690]

I sold a rental property located in Georgia in 2024 after receiving military orders relocating me to Ohio. The property was originally my primary residence before being converted into a rental. I had intended to move back in eventually, but those plans changed due to my relocation.

When I sold the property, I paid a 3% withholding tax to Georgia, which I understood to be the required amount for nonresidents selling real estate in the state. However, as I'm now completing my Georgia tax return, it shows that I owe an additional ~$7,000 in taxes—bringing the effective tax rate on the gain from the sale to over 5%.

Is this correct? I had assumed that the 3% withholding represented the full tax liability for nonresident real estate sales.

Thanks much!

[ThomasM125]

This may be correct. The 3% that you refer to is a mandatory withholding tax applicable to real estate sold in Georgia. However, it does not represent the rate of tax on your gain from the sale, which can be much higher.