Georgia Income Tax Guide 2026: Flat 4.99% Rate & Filing Tips

Georgia has a flat 4.99% income tax for 2026 — Governor Brian Kemp signed HB 463 on May 11, 2026, accelerating the rate cut to 4.99% three years ahead of the original 2029 target, retroactive to January 1, 2026.

Georgia Tax Rate 2026

Georgia moved from a graduated income tax to a flat rate starting in 2024, and has cut the rate every year since. HB 463 (signed May 2026) jumped the rate straight to 4.99% for 2026, replacing the previously scheduled gradual step-down:

How Georgia Flat Tax Works

With a flat tax, every dollar of taxable income is taxed at the same rate — no brackets to navigate. This makes Georgia taxes straightforward to calculate: simply multiply your taxable income (after deductions) by 4.99%.

Georgia Standard Deduction

HB 463 also raised Georgia’s standard deduction for 2026, and allows for future annual increases up to higher caps ($36,000 MFJ / $18,000 single):

Georgia Dependent Deduction

HB 463 raised Georgia’s per-dependent deduction for 2026:

Confirm with the Georgia Department of Revenue whether separate taxpayer/spouse personal exemptions still apply on top of the standard deduction for 2026, as this changed with HB 463’s restructuring — this guide previously cited older, stale exemption amounts that should not be relied on.

Georgia Tax Calculation Example

Married couple, 2 children, earning $100,000 (illustrative):

1. Gross income: $100,000
2. Standard deduction: −$30,000
3. Dependent deduction ($5,000 × 2): −$10,000
4. Taxable income: $60,000
5. Tax (4.99%): $2,994

Single filer, $70,000 salary:

1. Gross income: $70,000
2. Standard deduction: −$15,000
3. Taxable income: $55,000
4. Tax (4.99%): $2,745

Georgia vs. Southeastern States

Georgia’s 4.99% flat rate is now meaningfully lower than it was as recently as 2025. Confirm current rates for comparison states, as several have also cut rates for 2026:

Georgia Retirement Income Exclusion

Georgia is notably generous to retirees. Social Security is fully exempt from state tax, and residents 65 and older can exclude up to $65,000 ($130,000 for married couples) in retirement income for 2026 — rising to $70,000 ($140,000 married) starting in 2027 under HB 463. This makes Georgia one of the more tax-friendly states for retirees in the Southeast.

Age 62-64

Age 65+

This applies to retirement income (pensions, 401(k), IRA, and more).

What Qualifies for Georgia Retirement Exclusion

Georgia Property Tax

Confirm the current average effective property tax rate with the Tax Foundation or Georgia Department of Revenue, as this figure was not independently re-verified this session. Georgia’s property taxes have historically been below the national average, with significant variation by county — metro Atlanta counties like DeKalb and Fulton have historically had higher effective rates than suburban and rural counties.

Georgia Homestead Exemption

Georgia counties have different exemption amounts — check locally.

Georgia Sales Tax

Confirm current combined rates for specific cities/counties, as local option sales taxes (SPLOST) vary and change over time.

Georgia Tax Credits

Georgia offers a handful of tax credits. Confirm current amounts with the Georgia Department of Revenue, as several credit caps have been adjusted alongside the HB 463 changes:

Georgia 529 Tax Deduction

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

Confirm the current Georgia filing threshold with the Department of Revenue, as it generally tracks the standard deduction amount, which HB 463 significantly raised for 2026.

Georgia Filing Options

Filing deadline: April 15

Georgia Capital Gains

Georgia taxes capital gains as ordinary income at the flat 4.99% rate for 2026. No special exclusion or preferential treatment.

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+ in 2026, rising to $140,000 in 2027)
• Those leaving high-tax states (NY, CA, NJ)
• Those avoiding local income taxes

Consider:

• Income tax still higher than FL, TN, TX (0%)
• Confirm current sales tax rates for your specific county

Georgia Business Taxes

Georgia Tax Reform Impact (HB 463, 2026)

The May 2026 tax reform (HB 463) brought:

• Accelerated flat rate cut to 4.99% (three years ahead of the original 2029 schedule)
• Higher standard deduction ($15,000 single / $30,000 MFJ)
• Higher per-dependent deduction ($5,000)
• Higher future retirement income exclusion starting 2027 ($70,000/$140,000)
• A path to further rate cuts down to 3.99%, contingent on revenue targets

Remote Workers and Georgia Taxes

As remote work has expanded, Georgia generally follows physical presence rules for taxation.

Key rules for remote workers:

• Georgia resident working remotely for an out-of-state employer: You owe Georgia income tax on all wages earned while physically present in Georgia, regardless of where your employer is located.
• Georgia resident working partly in another state: File a Georgia resident return and claim a credit for taxes paid to the other state (avoiding double taxation).
• Reciprocity agreements: Georgia does not have broad reciprocity agreements with neighboring states — income earned while physically working in Georgia is generally Georgia-taxable.

For most full-time remote workers who are Georgia residents, the analysis is simple: all of your income is taxable in Georgia at 4.99%. If you’re unsure about your obligations, the Georgia Department of Revenue publishes guidance on its website.

Bottom Line

Georgia has a flat 4.99% income tax for 2026 — cut from 5.19% by HB 463, signed May 11, 2026, three years ahead of the original schedule. The higher $15,000/$30,000 standard deduction plus the new $5,000 per-dependent deduction reduce effective rates further. Retirees benefit from excluding up to $65,000-$130,000 of retirement income at age 65+ in 2026 (rising to $70,000/$140,000 in 2027). Georgia is moderately tax-friendly but still can’t compete with neighboring Florida or Tennessee’s zero income tax.

For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026 and best and worst states for taxes 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.