Georgia Tax Calculator

Income Tax
5.49%
flat (new 2024)
Sales Tax
7.38%
avg combined
Property Tax
0.83%
below average

Georgia Income Tax

Georgia switched from a graduated income tax to a flat 5.49% rate effective January 2024. This was part of House Bill 1437, signed in 2022, which converted Georgia from a six-bracket graduated system (1%-5.75%) to a flat tax. The rate is scheduled to decrease further in future years, potentially reaching 4.99% as revenue targets are met.

Georgia Sales Tax

Georgia's state sales tax is 4.00%, among the lowest state rates. However, local option sales taxes are substantial, pushing the average combined rate to approximately 7.38%. Most counties add 3-4% in local taxes. Groceries are exempt from state sales tax but may be subject to local sales taxes.

Georgia Property Tax

Georgia's effective property tax rate is approximately 0.83%, slightly below the national average. Property tax varies by county, with metro Atlanta counties typically having higher rates. Georgia offers homestead exemptions that vary by county.

Georgia Tax Reform: From Graduated to Flat

Georgia's transition to a flat tax was a significant change. Under the old system, rates ranged from 1% (on the first $750) to 5.75% (on income over $7,000). The new flat rate of 5.49% represents a slight reduction for most taxpayers, with the possibility of further reductions tied to revenue growth.

The standard deduction increased significantly as part of the reform: $12,000 for single filers and $24,000 for married filing jointly, bringing Georgia closer to the federal amounts.

Georgia Film Industry Tax Incentives

Georgia has become a major hub for film and television production, largely due to its generous tax credits. Productions that spend $500,000 or more in Georgia qualify for a 20% transferable tax credit, with an additional 10% for including a Georgia promotional logo. This has attracted major productions and earned Georgia the nickname "Hollywood of the South."

Georgia vs. Neighboring States

  • Florida — No income tax, making it attractive for high earners. But Florida has higher sales tax (7.05% avg) and similar property tax (0.86%).
  • South Carolina — Higher top income tax rate (6.4% graduated) but lower average property tax (0.55%). Lower sales tax (7.44% avg).
  • Tennessee — No income tax, but very high combined sales tax (9.55% avg). Lower property tax (0.64%).
  • North Carolina — Lower flat income tax (4.50%). Similar property and sales tax rates. NC's lower income tax rate may make it more attractive for higher earners.

Frequently Asked Questions

What is Georgia's income tax rate in 2026?
Georgia has a flat income tax rate of 5.49% in 2026. The state transitioned from a graduated system (1%-5.75%) to a flat rate as part of HB 1437, signed in 2022. The rate is scheduled to decrease further in future years, potentially reaching 4.99%.
Does Georgia tax retirement income?
Georgia provides a retirement income exclusion of up to $65,000 per person (age 62-64) or $130,000 per couple. At age 65+, the exclusion increases to $65,000 per person. Social Security benefits are fully exempt from Georgia state income tax.
What is Georgia's sales tax rate?
Georgia has a 4% state sales tax rate. Counties add 3%-4% in local option sales taxes, bringing the average combined rate to approximately 7.38%. Groceries are exempt from the state 4% rate but may still be subject to local sales taxes in some counties.
What is Georgia's property tax rate?
Georgia's effective property tax rate is approximately 0.83%, near the national average. Property is assessed at 40% of fair market value. Georgia offers a homestead exemption that varies by county, with most counties providing at least a $2,000 exemption off assessed value.
Is Georgia a tax-friendly state?
Georgia is moderately tax-friendly. The flat 5.49% income tax rate is competitive with neighboring states. Low property taxes, generous retirement income exclusions, and no estate or inheritance tax make Georgia particularly attractive for retirees.