Georgia's income tax brackets and rates

Georgia has a progressive income tax system, meaning the rate you pay depends on how much you earn. The state uses six tax brackets, and your income is taxed at different rates as it moves through each bracket. For the 2024 tax year, Georgia's rates range from 1% on the lowest bracket to 5.75% on the highest.

The brackets themselves change slightly each year because Georgia adjusts them for inflation. Your filing status — single, married filing jointly, head of household, or married filing separately — determines which bracket your income falls into. A married couple filing jointly will have higher income thresholds for each bracket than a single filer, so the same dollar amount may be taxed at a lower rate.

Georgia also taxes long-term capital gains and may have access to dividends at a lower rate than ordinary income. If you have investment income, you may pay 15% on those gains instead of your regular income tax rate, though this depends on your total income level and other factors.

Key Takeaways

  • Georgia's income tax rates run from 1% to 5.75% depending on your income level and filing status.
  • The income thresholds for each bracket are adjusted annually for inflation, so the exact dollar amounts change year to year.
  • You will owe Georgia income tax on wages, self-employment income, and most other income sources if you live in Georgia or earned income there.
  • Long-term capital gains and may have access to dividends may be taxed at 15% rather than your regular rate, but this depends on your total income.

What income is subject to Georgia tax

Georgia taxes most forms of income. Wages from a job, self-employment income, rental income, and interest from savings accounts are all subject to state income tax. If you work for an employer in Georgia, your employer will withhold Georgia income tax from your paycheck based on the W-4 form you fill out.

Some income is exempt from Georgia tax. Social Security benefits are not taxed by Georgia, and neither are certain retirement distributions if you meet age and income requirements. Military retirement pay and federal employee retirement pay also receive special treatment under Georgia law. If you receive income from sources outside Georgia and do not live in the state, you generally do not owe Georgia income tax on that income.

If you are self-employed, you owe Georgia income tax on your net business income. You will also owe federal self-employment tax, but Georgia does not collect that — it goes to the IRS. You can deduct business expenses from your gross income before calculating what you owe Georgia.

How to calculate your Georgia income tax

Start with your federal taxable income as reported on your federal tax return. Georgia allows you to use the same deductions you claimed federally, with some adjustments. You subtract the standard deduction or itemized deductions (whichever you used on your federal return), then apply Georgia's tax brackets to what remains.

Once you know your taxable income, you find the bracket that matches your income level and filing status, then multiply that portion of your income by the corresponding rate. Because Georgia uses progressive brackets, different parts of your income are taxed at different rates. The first dollars you earn are taxed at 1%, then the next portion at 2%, and so on until you reach your top bracket.

If you had taxes withheld from your paycheck throughout the year, you subtract that from the total tax you owe. If you withheld too much, you get a refund. If you withheld too little, you owe the difference when you file your return.

When and how to pay Georgia income tax

If you are an employee, your employer handles most of the payment for you through payroll withholding. You do not send money to Georgia directly — it comes out of your paycheck. The amount withheld depends on the W-4 form you completed with your employer and your income level.

If you are self-employed or have income that is not subject to withholding, you may need to make quarterly estimated tax payments to Georgia. These are due on April 15, June 15, September 15, and January 15 of the following year. You can pay online through the Georgia Department of Revenue website, by mail, or through an authorized payment processor.

Your annual Georgia income tax return is due on the same date as your federal return, typically April 15. You file using Form 500 (the Georgia individual income tax return) or Form 500-EZ if your situation is simpler. If you file your federal return late and get an extension, that extension also applies to your Georgia return.

Special situations and deductions

Georgia offers a retirement income exclusion for residents age 65 and older. If you meet the age requirement and your income is below a certain threshold, you can exclude some or all of your retirement income from taxation. This includes distributions from IRAs, 401(k)s, pensions, and annuities, but not Social Security.

Military active duty pay is not subject to Georgia income tax if you are stationed outside Georgia, even if you are a Georgia resident. This is a federal rule that Georgia follows. If you are a member of the military, you may also be able to claim a different state as your domicile for tax purposes.

Georgia does not allow a local income tax, so you do not owe city or county income tax on top of the state rate. Some states do impose local income taxes, but Georgia does not. Your only income tax obligation to the state is the state rate itself.

Where to find your specific tax bracket

The Georgia Department of Revenue publishes the current tax brackets and rates each year on its website. You can search for "Georgia tax brackets" and the current year to find the official rates and income thresholds. The brackets are updated in January of each year to reflect inflation adjustments.

If you use tax software to prepare your return, the software will automatically apply the correct brackets based on your filing status and income. If you prepare your return by hand or with a tax professional, you will need to look up the brackets yourself or have your preparer do so.

Your employer's payroll department also has access to the current brackets and uses them to calculate withholding. If you think your withholding is incorrect, you can adjust it by submitting a new W-4 form to your employer at any time during the year.

Frequently Asked Questions

Does Georgia tax Social Security income?

No. Georgia does not tax Social Security benefits, even if your total income is high. This is one of the few income sources that Georgia excludes from taxation. However, Social Security may still affect your federal tax situation.

What is the difference between Georgia's tax rate and the federal tax rate?

Georgia's top rate is 5.75%, while federal rates go up to 37%. You owe both — they are separate taxes. Your employer withholds both federal and Georgia income tax from your paycheck. When you file your return, you file both a federal return and a Georgia return.

If I moved to Georgia mid-year, do I owe tax on the whole year?

You owe Georgia income tax only on income earned while you were a Georgia resident. If you moved to Georgia in July, you owe tax on income from July through December. You will file a part-year resident return and may also need to file a return in your previous state.

Can I claim Georgia income tax paid on my federal return?

Yes, if you itemize deductions on your federal return, you can deduct state income taxes paid. You can deduct either state income tax or state sales tax, but not both. Most people choose to deduct income tax because it is usually higher.

What happens if I do not pay my Georgia income tax?

The Georgia Department of Revenue can assess penalties and interest on unpaid taxes. They can also place a lien on your property, garnish your wages, or intercept your state tax refund. If you owe and cannot pay in full, you can contact the Department of Revenue about a payment plan.