Georgia tax: Overview
This year, 2024, Georgia moved to a flat personal income tax rate of 5.49%.
Georgia offers tax breaks for retirement income and there are no estate or inheritance taxes in the state. 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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
According to Gov. 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 taxes
| 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.
More on Georgia from Kiplinger
-
Don't Leave Your Heirs an IRA Tax BombYour traditional IRA has served you well, but when your heirs inherit it, watch out. Consider some of these strategies to minimize their tax burdens.
-
Five Ways to Maximize Your End-of-Year PhilanthropyTo do the most good, pick the right charity, be smart about how you donate and consider giving something just as valuable as money: your time.
-
New Mexico Small Business Saturday Tax Holiday Is HereTax Holiday Here's how you can save on taxes during New Mexico’s Small Business Saturday.
-
Black Friday: Tax Saving Tips to Know Before You ShopTax Deductions Before hitting the sales, businesses should know these key deductions and look out for overspending.
-
Tax Credit vs. Tax Deduction: What’s the Difference?Tax Breaks Your guide to tax deductions and credits, how the IRS treats them differently, and how they impact your tax bill.
-
Premium Tax Credit: Are You Eligible For This Health Insurance Tax Break?Tax Credits The tax credit can help qualifying individuals pay for coverage from the Affordable Care Act’s health insurance marketplace.
-
FSA Contribution Limits Are Higher for 2025FSA A flexible spending account allows you to build tax-free savings for certain medical expenses.
-
Florida Tax Deadline Extension: What You Need to KnowTax Relief The IRS extended federal tax return file time due to severe storms.
-
IRS: Here’s How to Recover Your Tax Records After a Natural DisasterTax Records Your tax documents can help you get federal relief faster, the IRS says.
-
Voters Approve New Veteran Property Tax ReliefTax Relief Thanks to the election, some Veterans will soon see expanded property tax exemptions.
