Georgia Tax Guide 2025
Explore Georgia's 2025 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.

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.
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: 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
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
Ten Cheapest Places to Live in Texas
Property Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for You
AI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
Ten Cheapest Places to Live in Texas
Property Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
Trump Tax Bill Targets Current EV Owners With New $250 Annual Fee
Tax Law Is the Trump administration about to make EV ownership more expensive?
-
Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High Prices
State Tax Ohioans won't want to miss out on savings as pressure from tariffs spikes prices.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the Senate
Tax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
Hawaii Approves First-of-its-Kind 'Green Fee' for Tourists: What to Know
State Tax Your trip to the Aloha State could be a bit more expensive next year. Here's why
-
Trump Tariffs: Will Walmart, Target and Nike Still Raise Prices in 2025?
Tax Law Walmart and other major U.S. retailers were bracing for price hikes due to steep tariffs, but now that could change.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers Qualify
Tax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
What Do Trump's Pardons for Rich Tax Evaders Mean for IRS Enforcement?
Tax Law Recent pardons raise questions about tax fairness and the difference between tax avoidance and evasion.