Georgia
A 1031 exchange of Georgia property, with the right affidavit.
Georgia buyers withhold 3% from nonresident sellers. A like-kind exchange is exempt to the extent the gain is deferred, and the seller shows it with one specific form.
When a nonresident sells Georgia real property, the buyer withholds 3% of the price. A like-kind exchange is exempt to the extent the income is not taxed, and the seller shows that on Georgia's Seller's Certificate of Exemption, Form IT-AFF3. Cash or other boot you receive is still subject to withholding.
onezero3one acts as qualified intermediary for exchanges of Georgia property, subject to a review of each file before an exchange agreement is signed. We work with your closing agent and tax advisor; we do not give tax or legal advice.
What is specific to this state
The federal rules in IRC §1031 decide whether an exchange qualifies. The items below are state requirements that sit alongside them at closing or on the return. Each links to the official source it was checked against; confirm the current version with your closing agent and tax advisor before relying on it.
| Issue | What applies | Usually handled by | Source |
|---|---|---|---|
| Withholding by the buyer (nonresident sellers) | When a nonresident sells Georgia real property, the buyer withholds 3% of the sales price, or 3% of the gain if the seller signs a gain affidavit (IT-AFF2), and files Form G2-RP by the last day of the month after closing. A buyer who fails to withhold is personally liable. Nonresident sellers. | Buyer, usually through the closing attorney | Georgia DOR, Form G2-RP (rev. 06/01/23) Checked September 30, 2026 |
| Claiming the 1031 exemption | Georgia's Seller's Certificate of Exemption (Form IT-AFF3) lists a like-kind exchange where the income from the sale is not subject to federal or state income tax. The DOR's guidance limits the exemption to that extent, so cash or other boot received is still subject to withholding. Nonresident sellers in a 1031 exchange. | Seller signs; the buyer keeps it to show why nothing was withheld | Georgia DOR, Form IT-AFF3 (rev. 11/05/21) and withholding guide Checked September 30, 2026 |
| Real estate transfer tax | Georgia's transfer tax is $1 for the first $1,000 and 10 cents for each additional $100 of price, paid before the deed is recorded, with a PT-61 declaration e-filed through GSCCCA. The seller is liable unless the contract shifts it; the statutory exemptions do not include exchanges. Every deed. | Closing attorney, under the contract's allocation | Georgia DOR, Real Estate Transfer Tax; O.C.G.A. §§48-6-1, 48-6-2 Checked September 30, 2026 |
3% withholding and the affidavits
The buyer withholds 3% of the sales price, or 3% of the gain if the seller signs a gain affidavit (IT-AFF2), and files Form G2-RP by the last day of the month after closing. A buyer who fails to withhold is personally liable, so expect the closing attorney to ask for the right affidavit.
Georgia uses three seller affidavits, and it matters which one you sign:
- IT-AFF1: residency, for Georgia residents; not for an out-of-state seller.
- IT-AFF2: gain, to limit the 3% to the gain rather than the price.
- IT-AFF3: exemption, which lists a like-kind exchange where the income from the sale is not subject to federal or state income tax.
The Department's guidance limits the exchange exemption to the extent the income is not taxed in Georgia, so recognized gain, such as cash taken out, is still withheld on. The guidance does not separately address delayed exchanges through an intermediary; tell the closing attorney early that the sale is the first half of an exchange.
Transfer tax and PT-61
Georgia's transfer tax is $1 for the first $1,000 and 10 cents for each additional $100 of price, about $1 per $1,000, paid before the deed is recorded, with a PT-61 declaration e-filed through GSCCCA. The seller is liable unless the contract shifts it, and the statutory exemptions do not include exchanges. The Department refers exemption questions to the county clerk of superior court.
State income tax
Georgia conforms to the Internal Revenue Code annually, and we found no Georgia provision decoupling from §1031; the Department's own exemption form treats a qualifying exchange as producing no state income tax.
Questions Georgia sellers ask
Which form shows that my sale is part of a 1031 exchange?
IT-AFF3, the Seller's Certificate of Exemption, which lists like-kind exchanges.
Will Georgia withhold on the cash I take out?
Yes. The exemption applies only to the extent the income is not taxed.
Is the transfer tax waived for an exchange?
No. It is about $1 per $1,000 on each deed.
Related
Sources
- Georgia DOR, Form G2-RP (withholding on sales or transfers of real property by nonresidents) (checked September 30, 2026)
- Georgia DOR, Form IT-AFF3 (seller's certificate of exemption) (checked September 30, 2026)
- Georgia DOR, withholding on sales or transfers of real property (guide) (checked September 30, 2026)
- Georgia Comp. R. & Regs. 560-7-8-.35 (checked September 30, 2026)
- Georgia DOR, Real estate transfer tax (checked September 30, 2026)
Selling Georgia property?
Tell us the county, whether you live in Georgia, and the closing date.
Discuss your Georgia exchange