Georgia Tax: Guide to Income, Sales, Property, and Retirement Taxes

Picture of the Georgia U.S. state flag flying on a pole for Georgia state tax guide

(Image credit: Getty Images)

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.

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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: Peach State lawmakers are considering eliminating the Georgia state income tax. A state Senate committee led by Lt. Gov. Burt Jones proposed a way for Georgia to end the income tax through tax cuts, but not everyone is on board. For more information, check out Kiplinger's report, Will You Pay Georgia Income Tax in 2027? Inside the New Elimination Roadmap.

[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% for 2025. That rate is 5.09% for 2026.

Note: 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

Still life of a small shopping cart with $1 USD bills

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

rendering of a yellow car against a yellow background

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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

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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

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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

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has helped taxpayers make sense of shifting U.S. tax law and policy from the Affordable Care Act (ACA) and the Tax Cuts and Jobs Act (TCJA), to SECURE 2.0, the Inflation Reduction Act, and most recently, the 2025 “Big, Beautiful Bill.” She has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and energy tax credits. Her award‑winning work has been featured in numerous national and specialty publications.