Navigating the complexities of state taxes can be daunting, but understanding Georgia's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of Georgia's tax system, from income and sales taxes to property taxes and retirement benefits.
Georgia tax: Overview
As of 2024, Georgia has implemented significant reforms, including a flat income tax rate of 5.49%, simplifying the previous multi-bracket system.
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This change is part of a broader initiative to reduce the tax burden for individuals and families while fostering economic growth.
Georgia offers tax breaks for retirement income and does not have estate or inheritance taxes. However, Georgia's sales tax rates are relatively high compared to other states.
In the News: Some Georgia residents have tax reasons to celebrate, as Gov. Brian Kemp recently approved $700 million worth of tax relief measures for individuals and businesses. It is estimated that Georgia taxpayers could save about $3 billion over the next ten years.
According to Kemp, the new Georgia state income tax cuts, retroactive to January 1st of this year, are designed to keep more money in Georgian's pockets.
For more information, see Georgia Has a New 2024 Income Tax Rate.
[Data for this state tax guide was gathered from a number of sources including the U.S. Census Bureau, the state’s government website, the Tax Foundation, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]
Georgia income tax rate
Georgia Income Tax Range
Beginning in 2024, the Georgia income tax changed to a flat rate of 5.49%.
From 2025 to 2029, the rate will gradually be reduced to 4.99% if certain economic targets are met. If the economic targets are not met, the rate reduction schedule could be delayed.
Georgia Taxes on Retirement Income
Georgia taxes most retirement income, but the state offers a hefty retirement income exclusion. Taxpayers age 62 and older may exclude up to $35,000 of their retirement income, and those age 65 and older can exclude up to $65,000 of retirement income.
- Social Security: Not taxable
- Pensions: Partially taxable
- 401(k) and IRA Distributions: Partially taxable
Georgia sales tax
Georgia's state sales tax rate is 4%. The average local sales tax rate is 3.35%, for a combined state and local average rate of 7.35%, according to the Tax Foundation.
- Groceries: Exempt from state tax, but local taxes may apply
- Clothing: Taxable
- Motor Vehicles: Exempt from state tax, but local taxes may apply
- Prescription Drugs: Taxable
How much is Georgia property tax?
In Georgia, the property tax paid is 0.92% of the assessed home value.
Georgia gas tax
| Product | Tax Amount |
|---|---|
| Gasoline | $0.26 per gallon |
| Diesel | $0.29 per gallon |
Source: Sales Tax Handbook
Georgia taxes on alcohol and tobacco
Georgia tobacco taxes
| Product | Tax Amount |
|---|---|
| Cigarettes | $0.37 for a pack of 20 |
| Cigars | 23% of the wholesale cost |
| Other tobacco products | 10% of the wholesale cost |
Source: Sales Tax Handbook
Georgia alcohol taxes
| Product | Tax Amount |
|---|---|
| Beer | $0.32 per gallon (Additional $0.53 per gallon local tax can apply.) |
| Wine | $1.51 per gallon |
| Liquor | $3.79 per gallon (Local taxes may apply as well.) |
Source: Sales Tax Handbook
Georgia estate and inheritance taxes
There are no estate or inheritance taxes in Georgia.
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