Georgia Tax Guide
Explore Georgia's state tax rates for income, sales, property, retirement, and more. Learn how Georgia compares nationwide.
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 The Peach State's tax system, from income and sales taxes to property taxes and retirement benefits.
Georgia tax: Overview
Georgia recently made some significant changes to its tax system.
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The state introduced a flat income tax rate of 5.49%, replacing the old, complicated multi-bracket system. That is seen by some as a win for taxpayers, making things simpler while also lowering the overall tax burden for many.
On top of that, Georgia offers some perks for retirees, including tax breaks on retirement income.
And if you’re worried about estate or inheritance taxes, you’re in luck — Georgia doesn’t have either.
That said, keep in mind that the state’s sales tax rates are still a bit higher than in some other places.
In the News: Peach State lawmakers are considering eliminating the Georgia state income tax. A state Senate committee led by Lt. Gov. Burt Jones proposed a way for Georgia to end the income tax through tax cuts, but not everyone is on board. For more information, check out Kiplinger's report, Will You Pay Georgia Income Tax in 2027? Inside the New Elimination Roadmap.
[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 state income tax
Georgia has a flat individual income tax rate of 5.49% for 2025. That rate is 5.09% for 2026.
Note: 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 Retirement Taxes
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 3.38%, for a combined state and local average rate of 7.38%, 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 0.72% 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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