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.
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.
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 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.
More on Georgia from Kiplinger
-
The GOP Wants to Auto-Enroll Your Child in a MAGA Savings AccountTax Law The federal government could auto-enroll your kid in a tax-advantaged ‘MAGA savings account’ if the latest House GOP tax plan becomes law.
-
Missouri Leads Capital Gains Tax Repeal: Will Your State Follow?State Tax As one state becomes a test case, policymakers and taxpayers across the U.S. will be watching closely to see what happens next.
-
Here's How the Child Tax Credit Could Increase Under TrumpTax Credits House Republicans released details on President Trump’s ‘one big, beautiful bill,’ including an increased child tax credit.
-
New Overtime Tax Deduction Proposed for Millions Working Extra HoursTax Law Some lawmakers and President Trump want to offer overtime tax relief. But will a tax deduction or an exemption help you most?
-
Big Tax Deduction Increase Proposed for Those Over Age 65Tax Deductions A new bipartisan bill and a tax plan from the House GOP could mean bigger retirement tax savings to offset taxes on Social Security and high prices.
-
Ten Cheapest Places To Live in New YorkProperty Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
-
Turn Your Tax Return Into an Engine for Long-Term GrowthRather than filing away your paperwork and forgetting about it, this CPA recommends using it as a source of insight to optimize your long-term financial strategy.
-
‘My Etsy Shop is Dead’: Vendors Cry for Help Amid Trump’s TariffsTariffs Small businesses are struggling to thrive as they absorb the Trump administration’s new wave of tariffs.
