Georgia state tax: overview
This year, many middle-class families in Georgia will likely pay the state's top marginal income tax rate of 5.75%. But the state is going to a flat tax next year, in 2024.
Georgia offers tax breaks for retirement income and there are no estate or inheritance taxes in the state. But sales tax rates are relatively high in Georgia compared to other states.
[Data for this state tax guide was gathered from a number of sources including the U.S. Census Bureau, the state’s government website, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]
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Georgia income taxes
Georgia Income Tax Range
The income tax in Georgia on taxable income is a high of 5.75% (on over $7,000 for single filers and $10,000 for joint filers).
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.
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: Exempt
How much are property taxes in Georgia?
In Georgia, the property tax paid is 0.92% of the assessed home value.
Georgia gas taxes - motor fuel
| Product | Tax Amount |
|---|---|
| Gasoline | 29.1 cents per gallon |
| Diesel | 32.6 cents per gallon |
*Georgia Gov. Brian Kemp has suspended Georgia's gas tax until Oct. 12, 2023.
Georgia taxes on alcohol and tobacco
| 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 |
| 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: Georgia Department of Revenue
Georgia estate and inheritance taxes
There are no estate or inheritance taxes in Georgia.
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