Georgia State Tax Guide
Georgia tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
Georgia tax: overview
This year, 2024, Georgia moved to a flat personal income tax rate of 5.39%.
Georgia offers tax breaks for retirement income and there are no estate or inheritance taxes in the state. However, Georgia's sales tax rates are relatively high 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, the Tax Foundation, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]
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.
Georgia income tax rate
Georgia Income Tax Range
For the 2023 tax year, the income tax in Georgia on taxable income was a high of 5.75% (on over $7,000 for single filers and $10,000 for joint filers).
However, beginning in 2024, the state income tax changed to a flat rate of 5.39%.
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 3.35%, 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 is Georgia property tax?
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 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.
More on Georgia from Kiplinger
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
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.
-
Is a Phased Retirement Right for You?
Want to keep working, just not as hard? A phased retirement may just be the answer.
By Kimberly Lankford Published
-
Four Tips to Make Your Sales Presentation a Winner
Being prepared and not being boring can go a long way toward persuading a potential customer to buy into what you’re offering.
By H. Dennis Beaver, Esq. Published
-
'Instant' EV Tax Credits Are a Hit: $580M Paid This Year
EV Credits Claiming federal electric vehicle tax credits at the point of sale is a new and popular option in 2024.
By Kelley R. Taylor Last updated
-
Retirees Face Significant Tax Bills Due to Fraud
Fraud A new report sheds light on how older adult scam victims end up with big tax bills and lost retirement savings.
By Kelley R. Taylor Last updated
-
Tax Day: Is the Post Office Open Late?
Tax Filing Tax Day means some people need to mail their federal income tax returns.
By Kelley R. Taylor Published
-
High Earners: Beware of These Illegal Schemes to Lower Taxes
Tax Schemes The IRS says high-income filers are targets for several illegal tax schemes.
By Katelyn Washington Last updated
-
Mailing Your Tax Return This Year? What to Know Before You Do
Tax Filing There are plenty of reasons not to mail your tax return this year, but here’s what you should know if you are.
By Katelyn Washington Last updated
-
IRS Warning: Beware of Smishing and 'Helper' Tax Scams
Scams Tax season is a time to look out for email and text message scams.
By Kelley R. Taylor Last updated
-
Most Expensive States to Live in for Homeowners
Property Taxes High property tax bills make the places on this list the most expensive states for homeowners to live in.
By Katelyn Washington Last updated
-
Don’t Miss This $2,500 Tax Break for Paying Your Student Loan
Tax Deductions Do you qualify for the student loan interest deduction this year?
By Katelyn Washington Last updated