State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

Georgia State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Georgia

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The Bottom Line
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Not Tax-Friendly

In Georgia, most middle-class families find themselves paying the top marginal income tax rate of 5.75%, which kicks in at just $10,000 of taxable income for married couples filing jointly or $7,000 for individual filers (the state is going to a flat rate beginning in 2024). Plus, the Peach State's sales tax rates lean high, and in some areas, groceries are taxed as well. At least property taxes are middle-of-the-road, though.

Income Tax Range

Low: 1% (on the first $1,000 of taxable net income for married couples filing jointly; on the first $750 for individual filers; and on the first $500 for married couples filing separately)

High: 5.75% (on taxable income over $10,000 for married couples filing jointly; on taxable income over $7,000 for individual filers; and on taxable income over $5,000 for married couples filing separately)

Beginning in 2024, the state is switching 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 will be delayed.

Sales Tax

4% state levy. Localities can add as much as 4.9%, and the average combined rate is 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: Exempt

Real Property Taxes

In Georgia, the median property tax rate is $907 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 37.55¢ per gallon.
Diesel: 41.39¢ per gallon.

Sin Taxes

Cigarettes: $0.37 a pack
Cigars: 23% of the wholesale price
Other tobacco products: 10% of the wholesale price
Vapor products: $0.05 per ml for closed systems; 7% of wholesale price for open systems and disposables

Beer: $1.01 per gallon (includes mandatory $0.53 per gallon local tax)
Wine: $1.51 per gallon
Liquor: $3.79 per gallon (local taxes may also be due)

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed on vehicles purchased on or after March 1, 2013.

Estate and Inheritance Taxes

No estate or inheritance tax.