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The short answer
Georgia taxes full-year residents on all their income "regardless of the source or where derived", so net rent from a property in Nigeria is part of a Georgia resident's taxable income. The Georgia Department of Revenue says a credit is allowed for taxes paid to another state and does not mention foreign countries, so Nigerian withholding tax on the rent should not be assumed to reduce Georgia tax. It reduces federal tax through the foreign tax credit instead.
What Georgia says
The Georgia Department of Revenue's residency page is short and clear: "Full-year residents are taxed on all income, except tax exempt income, regardless of the source or where derived." Rent from a flat in Surulere or a duplex in Lugbe is income derived abroad, so it is in. Part-year residents file Form 500 with Schedule 3 to work out their Georgia taxable income, and the page points to the IT-511 booklet for the calculation.
Georgia now taxes individual income at a single flat rate. The Tax Foundation's 2026 table (February 2026) reports it as 5.19% for 2026, down from 5.39%. Confirm the rate for the year you are filing on the Department of Revenue's forms.
How the rent gets onto the Georgia return
Georgia's calculation starts from your federal return, so the Georgia figure follows the federal one. That means the federal work on the rent comes first:
- Report gross rent and expenses on federal Schedule E, converted to dollars.
- Depreciate the building, not the land, under IRS Publication 527 (2025), which gives a 30-year table for residential rental property under the alternative depreciation system.
- The net result flows into your federal adjusted gross income.
- Georgia starts from that figure, with its own adjustments, and applies its flat rate.
Because the state figure follows the federal one, a mistake in the federal Schedule E becomes a Georgia mistake too. Our guide to Schedule E for Lagos rent covers the federal lines.
The credit question
Nigerian tenants that are companies usually deduct withholding tax from rent. PwC's Nigeria withholding tax table (May 2026) lists rent at 10% for resident and non-resident recipients alike. That 10% is a Nigerian tax you have paid, and federally you may claim it as a foreign tax credit on Form 1116: the IRS foreign tax credit page (July 2026) allows a credit for foreign income taxes on income also taxed by the US. Our article on claiming Nigerian withholding tax on rent goes through the evidence you need.
Georgia is different. The Department of Revenue's page says "A credit for taxes paid to another state is allowed", and nothing about foreign countries. On the official guidance we read, there is no Georgia credit for Nigerian tax. Read the current IT-511 booklet or ask a Georgia preparer before claiming one, and do not put Nigerian tax on the other-state credit schedule.
A worked example
Example only. It uses the reported 2026 flat rate, ignores Georgia's deductions and exemptions, and uses an invented exchange rate. Tunde lives in Marietta all year. His Abuja flat is let to a company for ₦6,000,000 a year, and the company deducts 10% withholding tax.
| Item | Naira | US dollars at an example ₦1,500 |
|---|---|---|
| Gross rent | ₦6,000,000 | US$4,000 |
| Nigerian withholding tax (10%) | ₦600,000 | US$400 |
| Expenses and depreciation (example) | ₦2,250,000 | US$1,500 |
| Net rental income on Schedule E | ₦3,750,000 | US$2,500 |
| Georgia tax at 5.19% on US$2,500 | US$129.75 |
Check: 6,000,000 ÷ 1,500 = 4,000; 2,250,000 ÷ 1,500 = 1,500; 4,000 − 1,500 = 2,500; 2,500 × 0.0519 = 129.75. The US$400 of Nigerian tax may reduce his federal tax through Form 1116, subject to the limit, but on the guidance read here it does not reduce the US$129.75 Georgia tax. Withholding tax is not an expense on Schedule E if he claims the federal credit for it.
Moving into or out of Georgia
If you moved to Georgia from Texas, or left Atlanta for Houston, during the year, you are a part-year resident and file Form 500 with Schedule 3. Rent received while you lived in Georgia is in Georgia income; rent received after you left generally is not. Keep the Nigerian statement showing the date each rent payment arrived. For how Georgia compares with its neighbours, see Texas, Maryland and Georgia compared.
Where Pryme fits
Rent paid into a dedicated naira account gives you one statement showing each payment date, which matters both for the federal conversion and for part-year Georgia returns. A Pryme account can be opened from Georgia, holds NGN alongside USD (multicurrency account), and issues statements that can be made verifiable through VerifyDoc.ai (receipts and statements). Ask the tenant company for its withholding tax credit notes each year; they are your evidence for the federal credit.
Questions people ask
Does Georgia tax rent from my house in Nigeria?
Yes, for full-year residents. The Department of Revenue says residents are taxed on all income regardless of source.
What is Georgia's income tax rate in 2026?
The Tax Foundation reports a flat 5.19% for 2026. Confirm on the Department of Revenue's forms.
Can I claim Nigerian tax against my Georgia tax?
The Department of Revenue describes a credit for tax paid to another state only. On that guidance, Nigerian tax is not creditable in Georgia; it can be claimed federally.
I moved to Atlanta mid-year. Is all my Nigerian rent taxed in Georgia?
Generally only the part received while you were a Georgia resident, worked out on Form 500 Schedule 3.
Sources
- Georgia Department of Revenue: Residency filing requirements · accessed Oct 2026
- Tax Foundation: State individual income tax rates and brackets, 2026 (17 Feb 2026) · accessed Oct 2026
- IRS Publication 527 (2025), Residential rental property · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- IRS: Foreign tax credit (reviewed 9 Jul 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.