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Alpharetta, GA Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Classification basis
Employee headcount, five graduated tiers
Smallest tier
$125.00 plus $10.00 per employee (1-4 staff)
Largest tier
$175.00 plus $17.00 per employee (50+ staff)
Out-of-state flat rate
$500.00 annually, no in-state office
Licensed professional option
$400.00 per practitioner instead of tiers
Registration due date
January 1 annually; delinquent after 90 days

Summary

In the City of Alpharetta, every business or practitioner with a location in the city pays an occupation tax classified by employee headcount under § 42-58, with five graduated rate tiers from $125 plus $10 per employee up through $175 plus $17 per employee for businesses with 50 or more staff. Out-of-state businesses with no in-state location instead pay a flat $500 annual rate.

(a)An occupation tax is levied upon those businesses and practitioners of professions and occupations with one or more locations or offices within the corporate limits of the city and upon the applicable out-of-state businesses with no location or office in the state, pursuant to O.C.G.A. § 48-13-7, based upon the following criteria: ... (2)The tax shall be calculated at the following rates for all businesses (not otherwise addressed herein or by law): Employees Tax Liability

One to four $125.00 plus $10.00 per employee Five to ten $200.00 plus $10.00 per employee Eleven to twenty-five $325.00 plus $10.00 per employee Twenty-six to forty-nine $475.00 plus $10.00 per employee Fifty and above $175.00 plus $17.00 per employee

Full Breakdown

Section 42-58(a) levies the occupation tax on businesses and practitioners with one or more locations or offices in the city, and on out-of-state businesses with no in-state location, under authority of O.C.G.A. § 48-13-7. The tax is calculated by counting full-time employees, with virtual and remote workers included, and a full-time-equivalent formula for part-timers who work under 40 hours weekly. The rate schedule runs from $125.00 plus $10.00 per employee for one to four employees, up to $475.00 plus $10.00 per employee for 26 to 49 employees, and $175.00 plus $17.00 per employee for 50 or more employees.

Section 42-58(b) caps the city to one occupation tax per business location and sets a flat $500.00 annual rate for out-of-state businesses lacking any in-state office. Certain licensed professionals described in O.C.G.A. § 48-13-9(c)(1) through (18) get a separate classification choice under § 42-62: they can elect the standard employee-based tax, or instead pay $400.00 per licensed practitioner annually, an election made yearly. Attorneys are exempt from the registration-as-a-condition-of-practice and imprisonment provisions under § 42-58(c). Registrations and payment are handled by the city finance department under § 42-65, due January 1 each year and delinquent after 90 days.

Violations & Fines

Section 42-65(d) imposes a ten percent penalty on occupation tax or fees paid more than 90 days after the due date, plus 1.5 percent monthly interest on the unpaid balance. Section 42-70 makes transacting business without the required registration a punishable offense under section 1-8, and no initial or renewal registration under § 42-65(b) is granted while a business remains delinquent on city taxes, sanitation bills or other fees.

Frequently Asked Questions

How does Alpharetta classify my business for its occupation tax?
Under § 42-58(a), the classification is based on how many employees your business has, including remote and virtual workers, with a full-time-equivalent formula for part-timers. That headcount places you in one of five rate tiers running from $125.00 plus $10.00 per employee at the low end to $175.00 plus $17.00 per employee once you reach 50 or more staff.
Can a licensed professional pay a flat fee instead of the per-employee rate?
Yes. Section 42-62 lets practitioners covered by O.C.G.A. § 48-13-9(c)(1) through (18), such as many state-licensed professions, elect between the standard employee-based tax under § 42-58 or a flat $400.00 fee per licensed practitioner at their office. The election is made annually and applies to the practitioner's entire occupation tax.
What if my business has no office in Georgia?
Section 42-58(b)(4) sets a flat annual occupation tax of $500.00 for out-of-state businesses with no location or office in Georgia, provided their largest dollar volume of business in the state is in Alpharetta and they meet the solicitation or property criteria in § 42-59.
What happens if I pay the occupation tax late?
Section 42-65(d) adds a ten percent penalty on any occupation tax or fee paid more than 90 days after the January 1 due date, plus 1.5 percent interest for each month the balance stays delinquent. Section 42-70 also makes operating without a current registration a punishable offense under section 1-8.

Sources & Official References

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