Georgia taxes your wages, investment income, and retirement distributions at rates between 5.75% and 5.99%

Georgia has a state income tax that applies to most forms of income you earn. The tax rate is a flat 5.75% on ordinary income like wages and salaries, and 5.99% on long-term capital gains and may have access to dividends. Unlike federal income tax, Georgia does not use tax brackets — everyone pays the same percentage regardless of how much they earn. The state collects this tax through payroll withholding if you are employed, or through quarterly estimated payments and your annual tax return if you are self-employed or have investment income.

Georgia income tax is separate from federal income tax. You file both a federal return (Form 1040) and a Georgia return (Form 500 for residents, Form 500-CR for part-year residents) if you owe state tax. The state uses your federal taxable income as a starting point, then makes adjustments specific to Georgia law. Some income is exempt from Georgia tax entirely — for example, Social Security benefits and certain military pensions — while other income that is not taxed federally may be taxed by Georgia.

Key Takeaways

  • Georgia's state income tax rate is 5.75% on wages and most income, and 5.99% on long-term capital gains and may have access to dividends.
  • You must file a Georgia tax return if you are a resident with income above the filing threshold, which varies by age and filing status.
  • Your employer withholds Georgia income tax from your paycheck automatically if you live and work in the state.
  • Certain income types — including Social Security, some military pensions, and retirement account withdrawals under specific conditions — may be partially or fully exempt from Georgia tax.
  • Georgia allows a standard deduction and a personal exemption, both of which reduce the income amount that is actually taxed.

Who has to file a Georgia income tax return

You must file a Georgia return if you are a resident and your income exceeds the filing threshold for your age and filing status. The threshold changes each year. For the 2023 tax year, a single person under 65 with at least $11,000 in gross income must file; a single person 65 or older must file if they have at least $12,550 in gross income. Married couples filing jointly have a higher threshold — $22,000 if both are under 65, and $23,100 if at least one spouse is 65 or older. These thresholds include all types of income: wages, self-employment income, investment income, and retirement distributions.

Part-year residents — people who moved to or from Georgia during the tax year — must file if their Georgia-source income exceeds the threshold. Non-residents who earned income in Georgia may also have to file a Georgia return even if they do not live in the state, depending on the source and amount of that income. If you are unsure whether you meet the threshold, filing is generally safer than not filing, because the state can assess penalties for late or missing returns.

Standard deduction and personal exemption in Georgia

Georgia allows you to reduce your taxable income using a standard deduction and a personal exemption. The standard deduction for 2023 is $4,600 for single filers and $9,200 for married couples filing jointly. These amounts are lower than the federal standard deduction, so even if you do not itemize deductions on your federal return, you still claim the Georgia standard deduction on your state return. The standard deduction is adjusted each year for inflation.

Georgia also allows a personal exemption of $3,000 per person for residents. If you are married filing jointly, you claim two exemptions — one for yourself and one for your spouse. You can also claim exemptions for dependents, though the rules for who qualifies as a dependent are the same as federal tax law. These exemptions are subtracted from your income after you apply the standard deduction, further reducing the amount subject to the 5.75% tax rate.

Income types that are taxed or exempt in Georgia

Wages and salaries are fully taxable in Georgia. Self-employment income is also taxable, though you can deduct half of your self-employment tax on your Georgia return (the same deduction available on your federal return). Interest and ordinary dividends are taxed at the 5.75% rate. Long-term capital gains and may have access to dividends receive preferential treatment and are taxed at 5.99% instead.

Several income types are partially or fully exempt from Georgia tax. Social Security benefits are not taxed by Georgia, even though they may be taxable at the federal level. Military pensions and survivor benefits are exempt. Distributions from traditional IRAs and 401(k) plans are taxable, but Georgia allows a deduction of up to $35,000 per year for retirement income if you meet age and income requirements — this deduction phases out for higher earners. Distributions from Roth IRAs are not taxable because the contributions were made with after-tax dollars. Unemployment benefits are taxable in Georgia.

How payroll withholding works in Georgia

When you are hired in Georgia, your employer asks you to complete a Georgia withholding certificate (Form G-4). This form tells your employer how much Georgia income tax to deduct from each paycheck. The amount withheld depends on your filing status, the number of dependents you claim, and any additional withholding you request. Your employer then sends the withheld tax to the Georgia Department of Revenue on your behalf, usually monthly or quarterly depending on the size of the business.

If you do not want any tax withheld, you can claim exemption on Form G-4, but this is only appropriate if you had no tax liability the previous year and expect to have none in the current year. Most people should have some withholding to avoid owing a large amount when they file their return. If you change jobs, get married, have a child, or experience another major life change, you should update your withholding certificate so that the correct amount is deducted going forward.

Self-employed and quarterly estimated tax payments

If you are self-employed or have income that is not subject to withholding — such as rental income, investment income, or freelance work — you may need to make quarterly estimated tax payments to Georgia. These payments are due on April 15, June 15, September 15, and January 15 of the following year. The amount you pay is based on your expected income for the year and your expected tax liability. You calculate this using Form 500-ES, the Georgia estimated tax worksheet.

Underestimating your quarterly payments can result in penalties and interest, even if you ultimately pay the full amount owed when you file your annual return. If your income varies throughout the year, you can adjust your quarterly payments as you go. Many self-employed people work with a tax professional or accountant to calculate the correct quarterly amount, because getting it wrong can be costly.

Filing your Georgia tax return

Georgia residents file using Form 500 (Resident Income Tax Return) or Form 500-CR (Part-Year Resident Income Tax Return). You can file by mail or electronically through the Georgia Department of Revenue website. The filing deadline is April 15 of the year following the tax year, the same as the federal deadline. If you need more time, you can request an extension, which gives you until October 15 to file, though any tax owed is still due by April 15.

When you file, you report all income subject to Georgia tax, claim your standard deduction and personal exemptions, and calculate the tax owed. If you had too much withheld during the year, you receive a refund. If you did not have enough withheld, you owe the difference. You can file your Georgia return independently of your federal return, though most people file both at the same time because the Georgia return uses information from the federal return.

Frequently Asked Questions

Do I have to file a Georgia return if I only lived there part of the year?

Yes, if you earned Georgia-source income while you were a resident. You file Form 500-CR and report only the income earned during the months you lived in Georgia. Your standard deduction and personal exemption are prorated based on the number of months you were a resident. If you moved out of Georgia and had no Georgia-source income after you left, you do not owe Georgia tax on out-of-state income earned after your move date.

Is my military pension taxed by Georgia?

No. Military pensions and survivor benefits paid by the U.S. Department of Defense are completely exempt from Georgia income tax. This exemption applies regardless of your age or the amount of the pension. If you receive a military pension and other income, you report the other income on your Georgia return but exclude the military pension entirely.

Can I deduct my federal income tax payment on my Georgia return?

No. Georgia does not allow a deduction for federal income tax paid. You can deduct state and local taxes (SALT) on your federal return up to $10,000, but Georgia taxes are not deductible on your Georgia return. The two tax systems are separate, and each one calculates tax based on your income, not on taxes paid to the other jurisdiction.

What happens if I do not file a Georgia return when I owe tax?

The Georgia Department of Revenue can assess penalties and interest on unpaid tax. The penalty for failure to file is typically 5% of the unpaid tax per month, up to 25%. Interest accrues daily at a rate set by the state, currently around 7% per year. If you owe tax, filing late is better than not filing at all, because filing stops the failure-to-file penalty, though interest continues to accrue until you pay.

Do I report Georgia tax on my federal return?

No. Your federal return and Georgia return are separate filings. You do not report Georgia income tax on your federal Form 1040. However, if you itemize deductions on your federal return, you can deduct state and local taxes (including Georgia income tax) up to $10,000 total, which may reduce your federal taxable income.