Georgia has transitioned to a flat 5.39% income tax in 2026 — declining to 4.99% by 2029.
Georgia Tax Rate 2026
| Year | Tax Rate |
|---|---|
| 2023 | 5.49% |
| 2024 | 5.49% |
| 2025 | 5.39% |
| 2026 | 5.39% |
| 2027 | 5.29% |
| 2028 | 5.19% |
| 2029 | 4.99% |
Georgia is phasing in annual reductions to reach 4.99%.
How Georgia Flat Tax Works
| Taxable Income | Tax Rate | Tax Amount |
|---|---|---|
| $25,000 | 5.39% | $1,348 |
| $50,000 | 5.39% | $2,695 |
| $75,000 | 5.39% | $4,043 |
| $100,000 | 5.39% | $5,390 |
| $150,000 | 5.39% | $8,085 |
| $200,000 | 5.39% | $10,780 |
| $500,000 | 5.39% | $26,950 |
Georgia Standard Deduction
| Filing Status | 2026 Deduction |
|---|---|
| Single | $12,000 |
| Married Filing Jointly | $24,000 |
| Married Filing Separately | $12,000 |
| Head of Household | $18,000 |
Georgia increased deductions when moving to the flat rate.
Georgia Personal Exemption
| Exemption | Amount |
|---|---|
| Taxpayer | $2,700 |
| Spouse | $2,700 |
| Each dependent | $3,000 |
Georgia Tax Calculation Example
Married couple, 2 children, earning $100,000:
- Gross income: $100,000
- Standard deduction: -$24,000
- Exemptions ($2,700 × 2 + $3,000 × 2): -$11,400
- Taxable income: $64,600
- Tax (5.39%): $3,482
Georgia vs. Southeastern States
| State | Rate Type | Top Rate |
|---|---|---|
| Tennessee | None | 0% |
| Florida | None | 0% |
| South Carolina | Progressive | 6.4% |
| Alabama | Progressive | 5% |
| North Carolina | Flat | 4.5% |
| Georgia | Flat | 5.39% |
Georgia is mid-pack among Southern states.
Georgia Retirement Income Exclusion
Georgia offers a retirement income exclusion for those 62+:
Age 62-64
| Income Type | Exclusion |
|---|---|
| Retirement income | Up to $35,000 |
| Earned income | Up to $35,000 |
| Total exclusion | Up to $35,000 |
Age 65+
| Filing Status | Exclusion |
|---|---|
| Single | Up to $65,000 |
| Married Filing Jointly | Up to $130,000 |
This applies to retirement income (pensions, 401k, IRA).
What Qualifies for Georgia Retirement Exclusion
| Income Type | Eligible? |
|---|---|
| Social Security | Not taxed at all |
| Pension | Yes |
| 401(k)/403(b) | Yes |
| Traditional IRA | Yes |
| Military retirement | Yes |
| Earned income (65+) | Yes, up to $65,000 |
Georgia Property Tax
| Metric | Georgia |
|---|---|
| Average effective rate | 0.87% |
| National rank | 31st |
| On $350,000 home | ~$3,045 |
Georgia has below-average property taxes.
Property Tax by County
| County | Average Rate |
|---|---|
| DeKalb | 1.18% |
| Fulton (Atlanta) | 1.10% |
| Gwinnett | 0.95% |
| Cobb | 0.89% |
| Clayton | 1.15% |
| Cherokee | 0.82% |
Georgia Homestead Exemption
| Exemption Type | Reduction |
|---|---|
| Standard | Varies by county |
| Senior (65+) | Additional exemption |
| School tax freeze | Available in some counties |
| Disabled veteran | Full exemption possible |
Georgia counties have different exemption amounts — check locally.
Georgia Sales Tax
| Rate Type | Amount |
|---|---|
| State sales tax | 4% |
| Local additions | 2-4% |
| Total range | 7-9% |
Sales Tax by Area
| Location | Total Rate |
|---|---|
| Atlanta | 8.9% |
| Fulton County (outside Atlanta) | 7.75% |
| Gwinnett County | 6% |
| Savannah | 7% |
| Augusta | 8% |
Atlanta has one of the highest combined sales tax rates.
Georgia Tax Credits
| Credit | Amount |
|---|---|
| Low-income credit | Up to $26 |
| Child/Dependent credit | $3,000 per |
| Adoption credit | Varies |
| Qualified Education Expense | Up to $1,000 |
Georgia 529 Tax Deduction
| Filing Status | Max Deduction |
|---|---|
| Single | $4,000/beneficiary |
| Married Filing Jointly | $8,000/beneficiary |
Georgia offers one of the better 529 deductions in the Southeast.
Who Must File Georgia Taxes?
You must file if:
- Georgia resident with federal filing requirement
- Part-year resident with GA income exceeding threshold
- Non-resident with Georgia source income
Filing Threshold
| Filing Status | Threshold |
|---|---|
| Single | $14,700 |
| Married Filing Jointly | $29,400 |
Georgia Filing Options
| Method | Cost |
|---|---|
| Georgia Tax Center | Free |
| Commercial software | $0-$50 |
| Tax professional | $100-$300 |
Filing deadline: April 15
Georgia Capital Gains
Georgia taxes capital gains as ordinary income at the flat 5.39% rate. No exclusion or special treatment.
| Gain Type | State Rate |
|---|---|
| Short-term | 5.39% |
| Long-term | 5.39% |
Georgia Local Income Tax
Georgia has no local income taxes. Only state income tax applies.
Moving to Georgia
Good for:
- Retirees (up to $130,000 exclusion for 65+)
- Those leaving high-tax states (NY, CA, NJ)
- Those avoiding local income taxes
- Moderate property tax burden
Consider:
- Higher sales tax (7-9%)
- Atlanta-area has higher effective costs
- Income tax higher than FL, TN, TX (0%)
Georgia Business Taxes
| Tax | Rate |
|---|---|
| Corporate income tax | 5.39% |
| Pass-through (LLC, S-Corp) | Personal rate |
| Franchise tax | None |
Georgia has no franchise tax, benefiting businesses.
Georgia Tax Reform Impact
The 2022 tax reform brought:
- Flat rate (eliminating brackets)
- Higher standard deduction
- Phase-in to 4.99% by 2029
- Simplified filing
Bottom Line
Georgia has a flat 5.39% income tax declining to 4.99% by 2029. The $12,000-$24,000 standard deduction plus exemptions reduce effective rates. Retirees benefit from excluding up to $65,000-$130,000 of retirement income at age 65+. Property taxes (0.87%) are below average, though sales taxes (7-9%) are higher. Georgia is moderately tax-friendly but can’t compete with neighboring Florida or Tennessee’s zero income tax.