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Georgia Income Tax (2024)

Quick Reference

Tax Rate (2024)

Flat Rate: 5.39%

Georgia transitioned from progressive brackets to a flat tax in 2024. All taxable income is taxed at 5.39%, regardless of amount or filing status.

Standard Deduction (2024)

  • Single: $12,000
  • Married Filing Jointly: $24,000
  • Married Filing Separately: $12,000
  • Head of Household: $18,000

Personal Exemption

  • Taxpayer: $2,700
  • Spouse: $2,700
  • Dependents: $3,000 each

Flat Tax Transition Schedule

Georgia is phasing down the flat rate toward 4.99%:

  • 2024: 5.39%
  • 2025: 5.29% (scheduled)
  • 2026: 5.19% (scheduled)
  • 2027: 5.09% (scheduled)
  • 2028-2029: 4.99% (target)

Note: Future reductions contingent on state revenue meeting thresholds.

Details

Tax Computation

Georgia uses federal AGI as starting point:

Step 1: Federal AGI - From federal Form 1040, line 11 - Adjusted gross income after federal adjustments

Step 2: Georgia Additions - Add back: state/local income tax deduction claimed on federal Schedule A - Add back: other state-specific items

Step 3: Georgia Subtractions - Retirement income exclusion (see retirement-income.md) - Social Security (fully exempt) - Other Georgia-specific subtractions

Step 4: Georgia Taxable Income - Subtract standard deduction OR itemized deductions - Subtract personal exemptions

Step 5: Apply Flat Rate - Multiply Georgia taxable income by 5.39%

Historical Context

Prior to 2024, Georgia used six progressive brackets ranging from 1% to 5.75%. HB 1437 (signed 2022) replaced brackets with flat rate, effective tax year 2024.

Capital Gains

  • No preferential rate for capital gains
  • Taxed at same 5.39% flat rate as ordinary income
  • Long-term and short-term treated equally for state purposes

Withholding

Employers withhold at 5.39% flat rate (simplified from previous bracket-based calculation).

Estimated Tax

Required if: - Expect to owe $1,000 or more after withholding and credits - Georgia follows federal safe harbor rules

Due dates: April 15, June 15, September 15, January 15

Nonresident Taxation

Georgia-source income includes: - Wages for services performed in Georgia - Business income from Georgia operations - Rental income from Georgia property - Pass-through income from Georgia entities

Allocation: Nonresidents pay 5.39% on Georgia-source income only

Part-Year Residents

  • Taxed on all income while Georgia resident
  • Plus Georgia-source income while nonresident
  • Prorate personal exemption and standard deduction by residency period

Comparison to Other States

Flat Tax States (2024): - Georgia: 5.39% - Pennsylvania: 3.07% - Illinois: 4.95% - North Carolina: 5.25% - Colorado: 4.40%

Georgia advantage: Lower than most neighboring states (NC 5.25%, SC up to 6.4%)

Georgia consideration: No preferential capital gains rate (unlike federal)

Planning Notes

Benefits of Flat Tax

  • Simplified calculation and withholding
  • Predictable effective rate
  • No bracket creep concerns

Future Rate Reductions

Monitor state revenue reports - future rate cuts depend on meeting revenue thresholds. Conservative planning should assume current 5.39% rate.

Retirement Planning

Georgia's retirement income exclusion ($65,000 age 65+) combined with flat 5.39% rate makes Georgia attractive for retirees. See retirement-income.md.

Citations

Georgia Code

  • O.C.G.A. § 48-7-20 - Imposition of tax; rate
  • O.C.G.A. § 48-7-26 - Personal exemptions
  • O.C.G.A. § 48-7-27 - Computation of taxable net income
  • HB 1437 (2022) - Flat tax transition legislation
  • HB 1015 (2023) - Accelerated rate reduction to 5.39%

Forms

  • Form 500 - Georgia Individual Income Tax Return
  • Form 500-EZ - Short form for simple returns
  • Schedule 1 - Adjustments to income
  • Schedule 2 - Georgia credits

Department of Revenue

  • Georgia DOR: https://dor.georgia.gov
  • Tax Tables: https://dor.georgia.gov/tax-tables-georgia-tax-rate-schedule
  • Withholding Guide: https://dor.georgia.gov/withholding-tax