Georgia's tax brackets and rates for 2024

Georgia has a progressive income tax system, meaning the rate you pay depends on how much you earn. The state uses six tax brackets that range from 1% on the lowest incomes to 5.75% on the highest. Your income gets taxed at each bracket rate as it climbs, not all at one rate.

For the 2024 tax year, here is how the brackets break down for single filers: 1% on income up to $750; 2% from $750 to $2,250; 3% from $2,250 to $3,750; 4% from $3,750 to $5,250; 5% from $5,250 to $7,000; and 5.75% on anything over $7,000. Married couples filing jointly have higher income thresholds at each bracket, so the same percentage applies to more income before moving to the next tier.

Georgia does not adjust these brackets every year for inflation the way some states do. The brackets have remained at these same dollar amounts since 2018, which means over time, more of your income falls into higher brackets even if your actual earnings stay the same.

Key Takeaways

  • Georgia's top income tax rate is 5.75%, which applies only to income above $7,000 for single filers and higher thresholds for married couples.
  • You pay tax at each bracket rate as your income rises through it, not a single rate on all your income.
  • The income thresholds for each bracket have not changed since 2018, so your tax burden can increase even if your salary does not.
  • Georgia offers a standard deduction that reduces the income you actually pay tax on; the amount varies by filing status and age.

Standard deduction and what it reduces

Before Georgia taxes your income, you can subtract a standard deduction — an amount set by the state that lowers your taxable income. For 2024, the standard deduction is $3,100 for single filers, $6,200 for married couples filing jointly, and $4,600 for heads of household. If you are 65 or older, you get an additional $1,300 added to your standard deduction.

This means if you are single and earn $10,000, you subtract $3,100, leaving $6,900 subject to Georgia tax. You do not pay tax on that first $3,100. The standard deduction is the most common route; you can instead itemize deductions if you have large expenses like mortgage interest or charitable donations, but most people save money using the standard deduction.

How Georgia taxes different types of income

Wages and salaries are taxed at the rates above. However, Georgia treats some income differently. Long-term capital gains — profits from selling stocks or property you held for more than a year — are taxed at a lower rate of 0% if your total income is below certain thresholds, or 15% if it exceeds them. This is more favorable than the ordinary income rates.

Retirement income has special treatment in Georgia. If you receive a pension from a government employer (federal, state, or local), that income is completely exempt from Georgia tax. Military retirement pay is also exempt. Private pensions and distributions from retirement accounts like IRAs and 401(k)s are taxed as ordinary income at your bracket rate.

Social Security benefits are not taxed by Georgia, even though they may be taxed federally. Unemployment benefits are taxed as ordinary income. Interest and dividend income from savings accounts and investments are taxed at your ordinary bracket rate unless they may have access to for the capital gains treatment.

Tax credits that reduce what you owe

After you calculate your tax using the brackets, Georgia offers several credits that directly reduce the amount you owe. A tax credit is different from a deduction — it subtracts directly from your tax bill rather than from your income.

The Georgia Child and Dependent Care Credit covers a portion of what you pay for childcare or adult dependent care while you work. The amount depends on your income and the expenses you incurred. Georgia also offers a credit for property taxes paid on your home, which phases out at higher income levels. The Earned Income Credit, which mirrors the federal version, provides a credit to lower-income working people.

If you made donations to certain charitable organizations or education savings accounts, you may be able to claim a credit for those contributions. The rules vary by program, so check the Georgia Department of Revenue website or your tax software to see which credits apply to your situation.

How your employer withholds Georgia tax

When you start a job in Georgia, you complete a W-4 form that tells your employer how much Georgia tax to withhold from each paycheck. The amount withheld is an estimate based on your filing status, the number of dependents you claim, and any additional withholding you request. Your employer sends that withheld amount to the Georgia Department of Revenue on your behalf.

If your withholding is too high, you will get a refund when you file your tax return. If it is too low, you will owe money. You can adjust your withholding at any time by submitting a new W-4 to your employer — for example, if you get a raise, get married, or have a child. Many people adjust their withholding in January or after a major life change.

Self-employed people do not have an employer to withhold tax, so they must pay estimated taxes quarterly to the Georgia Department of Revenue. These payments are due in April, June, September, and January of the following year.

Filing your Georgia return and deadlines

Georgia follows the federal tax deadline: returns are due by April 15 each year (or the next business day if April 15 falls on a weekend). You file using Form IT-1, Georgia's individual income tax return, along with any schedules that apply to your situation — for example, Schedule C if you are self-employed or Schedule D if you have capital gains.

You can file on paper by mailing your return to the Georgia Department of Revenue, or you can file electronically through the state's website or through tax software. E-filing is faster and reduces errors. If you cannot file by April 15, you can request an automatic extension, which gives you until October 15, but any tax you owe is still due on April 15 — the extension only delays filing the paperwork, not payment.

Georgia accepts federal tax returns filed through the IRS Free File program if your income is below a certain threshold. Many tax software providers also offer free Georgia filing if you use their free federal version.

Frequently Asked Questions

Do I have to file a Georgia return if I live out of state?

No, you only file a Georgia return if you lived in Georgia for part of the tax year or earned income in Georgia. If you moved out of state and had no Georgia income, you do not file. If you moved mid-year, you file a part-year resident return and pay tax only on income earned while you were a Georgia resident.

What happens if I underpay my estimated taxes as a self-employed person?

The Georgia Department of Revenue charges interest and penalties on underpayment. The penalty is calculated based on how much you underpaid and how late the payment was. If your income is uneven throughout the year, you can adjust your quarterly payments to match when you actually earn the money, which may reduce the penalty.

Can I deduct student loan interest on my Georgia return?

Georgia does not offer a separate deduction for student loan interest. However, you can deduct it on your federal return (up to $2,500), which lowers your federal taxable income. Georgia taxes are calculated on your federal adjusted gross income, so the federal deduction indirectly reduces your Georgia tax as well.

Does Georgia tax retirement income from out of state?

Georgia does not tax pensions from government employers, regardless of where you worked. Private pensions and retirement account distributions are taxed as ordinary income if you are a Georgia resident. If you moved to Georgia after retiring, you may owe tax on distributions from that point forward, but not on income earned before you moved.