Georgia does have a state income tax

Georgia charges a state income tax on wages, investment income, and other earnings. Unlike nine other states that have no income tax at all, Georgia residents and anyone earning income in Georgia must file a state tax return and pay tax on most types of income. The tax rate depends on your income level — Georgia uses a progressive system with rates ranging from 5.75% to 5.99% as of 2024, though rates can change year to year.

This is separate from federal income tax. You will owe both Georgia state tax and federal tax on the same income. If you work in Georgia but live in another state, you may owe Georgia tax on that income depending on your residency status and the other state's rules.

Key Takeaways

  • Georgia's state income tax rates range from 5.75% to 5.99% depending on your income bracket, and you must file a state return in addition to your federal return.
  • Certain types of income are exempt from Georgia state tax, including Social Security benefits, military retirement pay, and some pension income for people over 65.
  • You file Georgia taxes using Form IT-1 (the Georgia Individual Income Tax Return) by April 15 each year, the same deadline as federal taxes.
  • If you live in Georgia but work in another state, you may owe tax to both states, though you can usually claim a credit for taxes paid to the other state.

What income is taxed in Georgia

Georgia taxes wages from employment, self-employment income, interest, dividends, capital gains, rental income, and retirement distributions. If you receive a W-2 from an employer in Georgia, that income is subject to Georgia tax. If you are self-employed or run a business, your net profit is taxed. Investment income — money from stocks, bonds, or real estate sales — is also taxed at the same rates as wages.

The state taxes retirement account withdrawals differently depending on the account type. Distributions from traditional IRAs and 401(k)s are taxed as ordinary income. However, distributions from Roth IRAs are not taxed because the money was already taxed when you contributed it.

What income is not taxed in Georgia

Social Security benefits are completely exempt from Georgia state tax, even if they are your only income. Military retirement pay and military survivor benefits are also exempt. If you are over 65, Georgia exempts up to $65,000 per year of retirement income from pensions, annuities, and distributions from retirement accounts — this is called the Retirement Income Exclusion.

Certain other income types are not taxed: gifts, inheritances, life insurance proceeds, workers' compensation, and disability benefits from Social Security (SSDI). Some scholarship and grant money used for tuition is also exempt, though room and board are not.

Georgia tax brackets and rates

Georgia uses a progressive tax system, meaning the rate increases as your income increases. You do not pay the highest rate on all your income — only on the portion that falls into each bracket. The brackets change slightly each year, but the structure remains the same.

As of 2024, the brackets are roughly: 5.75% on income up to about $1,000, then 5.85% on income from $1,000 to $3,000, then 5.90% on income from $3,000 to $5,000, and 5.99% on income over $5,000. These thresholds are adjusted annually for inflation. The Georgia Department of Revenue publishes updated brackets each January, so check their website if you are filing for a year other than 2024.

How to file Georgia state taxes

You file Georgia taxes using Form IT-1, the Georgia Individual Income Tax Return. The form is available on the Georgia Department of Revenue website. You can file on paper by mailing the form to the address listed on the form, or you can file electronically through the state's online system or through tax preparation software that supports Georgia returns.

The deadline to file is April 15 each year, the same as federal taxes. If you file your federal return late, your Georgia return is also considered late. You can request an extension, which gives you until October 15 to file, but any tax owed is still due by April 15 — an extension only delays filing, not payment.

If you are due a refund, filing electronically is faster. Paper returns typically take 6 to 8 weeks to process, while electronic returns are processed within 2 to 3 weeks if there are no issues.

Deductions and credits available in Georgia

Georgia allows a standard deduction, which reduces the amount of income you have to pay tax on. The standard deduction amount depends on your filing status and age. For 2024, the standard deduction is $3,100 for single filers and $6,200 for married couples filing jointly, though these amounts increase if you are 65 or older.

You can also claim the Retirement Income Exclusion mentioned earlier if you are over 65. Georgia offers a tax credit for child and dependent care expenses, and a credit for taxes paid to another state if you worked in multiple states. Some education-related credits are available as well, though they are limited compared to federal credits.

What happens if you do not file or pay

If you owe Georgia tax and do not file or pay by April 15, the state charges penalties and interest. The failure-to-file penalty is typically 5% of the unpaid tax per month, up to 25%. The failure-to-pay penalty is 0.5% per month. Interest accrues daily at a rate set by the state, which changes quarterly.

If you owe a large amount, the Georgia Department of Revenue can place a lien on your property, garnish your wages, or intercept your state refund. If you cannot pay in full, you can contact the Department of Revenue to set up a payment plan. The sooner you contact them, the more options you typically have.

Frequently Asked Questions

Do I have to file a Georgia tax return if I live there but had no income?

No. You only have to file if your income exceeds the threshold for your filing status. For 2024, that threshold is generally around $12,200 for single filers, though it varies by age and filing status. Check the Georgia Department of Revenue website for the exact threshold for your situation.

What if I moved to Georgia partway through the year?

You owe Georgia tax only on income earned after you became a resident. You will also owe tax to your previous state on income earned while you lived there. File a part-year resident return in Georgia and a non-resident return in the other state, reporting only the income earned during the time you lived in each state.

Can I deduct federal income tax from my Georgia taxes?

No. Georgia does not allow you to deduct federal income tax paid. You can only deduct state and local taxes (SALT) up to $10,000 on your federal return, but Georgia state tax is not deductible on your Georgia return.

Do I owe Georgia tax if I work remotely for a company outside Georgia?

If you are a Georgia resident, you owe Georgia tax on all income, regardless of where your employer is located. If you are not a Georgia resident but work remotely for a Georgia company, you generally do not owe Georgia tax — you owe tax to your home state instead.

Where do I send my Georgia tax payment?

If you file electronically, you can pay online through the Georgia Department of Revenue website using a credit card, debit card, or electronic bank transfer. If you file on paper, include a check with your return. Do not send cash. The mailing address is on the Form IT-1 instructions.