State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Georgia Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line 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 applyClothing: TaxableMotor Vehicles: Exempt from state tax, but local taxes may applyPrescription 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 packCigars: 23% of the wholesale priceOther tobacco products: 10% of the wholesale priceVapor products: $0.05 per ml for closed systems; 7% of wholesale price for open systems and disposablesBeer: $1.01 per gallon (includes mandatory $0.53 per gallon local tax)Wine: $1.51 per gallonLiquor: $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.