Georgia Tax Guide 2025

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

Beginning in 2024, Georgia shook things up with some big changes to its tax system. The state introduced a flat income tax rate of 5.49%, replacing the old, complicated multi-bracket system. This is a big win for taxpayers, making things simpler while also helping to lower the overall tax burden.

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On top of that, Georgia is offering some nice 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, it’s worth keeping in mind that the state’s sales tax rates are a bit higher than in some other places.

In the News: Many Georgia residents will welcome a special payment this year. Once again, Gov. Kemp signed a bill for one-time payouts to be issued to eligible Georgians. Georgia residents are expected to receive $1 billion in disbursements.

But more than just tax refunds are on the horizon.

Another law Kemp signed addresses state income tax cuts. As Kiplinger reported, Georgia moved to a new lower income tax rate last year and will continue to cut income taxes if certain economic factors are met. However, this new law accelerates the income tax cuts, and some taxpayers may see more tax savings than others.

For more information, see Georgia Surplus Tax Refund Checks in 2025? What You Need to Know.

[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%.

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 3.38%, 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

Source: Sales Tax Handbook

Georgia taxes on alcohol and tobacco

Georgia tobacco taxes

Source: Sales Tax Handbook

Georgia alcohol taxes

Source: Sales Tax Handbook

Georgia estate and inheritance taxes

There are no estate or inheritance taxes in Georgia.

More on Georgia from Kiplinger

• Georgia Surplus Tax Refund Checks in 2025? What You Need to Know.
• New Abortion Law Changes Tax Deductions
• Georgia's New 2024 Income Tax Rate
• 2023 Georgia Tax Rebates: What You Need to Know