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Georgia State Taxes: Key Insights and Filing Tips 2024

Understanding Georgia's tax landscape is vital for financial planning. With favorable rates for seniors and a diverse tax structure, navigating Georgia's taxes becomes more manageable.

Georgia is renowned for its sweet peaches and Megabus hub, but the Peach State also has a comprehensive approach to state taxes. And knowing the latest tax regulations can help you manage your finances better.

Georgia's taxes are average compared with other states. Seniors benefit from tax breaks on retirement income and property, plus there is no state tax on Social Security, estates, or inheritances. Overall, it is a tax-friendly state for older citizens.

It has 6 progressive income tax brackets, ranging from 1% to 5.75%, based on marital status, residency, and taxable income. However, the state will start with a flat rate of 5.49% in 2024 and reduce it to 4.99% by 2029 if certain economic targets are achieved.

Property tax is, on average, .92% of a home's assessed value in Georgia. Each county and municipality has varying rates as assessed by the Tax Foundation for 2021.

The sales tax rate in the state is 7.4%, composed of a 4% state tax and up to a 5% local tax.

In this article, we will cover all that you need to know about Georgia's state tax system from income tax to property tax, for both residents and non-residents.

What Are the Income Tax Rates in Georgia?

The income tax rates in Georgia are structured into six brackets ranging between 1% and 5.75%. They are determined by the taxpayer's filing status, such as single or jointly, resident status, and taxable income for the tax year. These progressive tax rates are:

  • 1%: For a taxable income up to $750 for a single filer or $1,000 for a joint filer
  • 2%: For a taxable income between $751-$2,250 for a single filer or $1,001-$3,000 for a joint filer
  • 3%: For a taxable income between $2,251-$3,750 for a single filer or $3,001-$5,000 for a joint filer
  • 4%: For a taxable income between $3,751-$5,250 for a single filer or $5,001-$7,000 for a joint filer
  • 5%: For a taxable income between $5,251-$7,000 for a single filer or $7,001-$10,000 for a joint filer
  • 5.75%: For a taxable income over $7,001 for a single filer or over $10,001 for a joint filer

For example: A single filer's income above $7,000 is taxed at increasing rates. The first $750 is taxed at 1%, then $751 to $2,250 at 2%, and so on.

Another example is a couple jointly filing their taxes — the first $1,000 of their income is taxed at 1%, $1,001 to $3,000 at 2%, and continues progressively until amounts over $10,001, which are taxed at 5.75%.

Does Georgia Tax Pensions and Other Retirement Income?

Retirement income sources such as pensions, annuities, IRAs, and 401(k)s are taxed like regular income – from 1 to 5.75%** (in 2024 that would be 5.49%).** AARP's Retirement Calculator can help you plan for the retirement you want.

What Are the Property Taxes in Georgia?

Georgia's average effective property tax rate is 0.93%, which is slightly below the national average. However, county and municipal rates may vary. Property taxes fund schools, emergency services, infrastructure, and other public services.

The amount of tax homeowners pay depends on the official fair market value of the property as assessed by county tax officials. An assessment appeal can be made if a homeowner believes the valuation is too high.

What Are the Property Tax Rates in Georgia?

In Georgia, property tax is a local tax based on the value of your home, as assessed by the state. The average rate is .92% of the assessed value but varies by county and municipality. In 2020, the median tax bill ranged from $413 in Quitman County to $3,185 in Fulton County, according to the Tax Foundation. Visit the Georgia Department of Revenue to learn more about assessment and appeal procedures, as well as property taxes in your county.

What Are the Sales and Tax Implications?

Sales tax

Sales tax in Georgia is composed of a 4% state tax and an average local tax rate of 3.4%, bringing the total rate to 7.4%.

This rate is the 19th highest in the US, according to the Tax Foundation. You can find rate charts by county on the Georgia Department of Revenue website. Note that not all goods and services are subject to sales tax.

Sales tax does not apply to groceries, prescription drugs, or motor vehicles.

Georgia consumers pay 31.2 cents per gallon in state excise tax on gasoline (35 cents on diesel). This tax is collected by the wholesaler and reflected in the pump price. In addition, local prepaid tax may be applied.

Tax on vehicles

Georgia vehicles purchased after March 1, 2013, incur a one-off Title Ad Valorem Tax (TAVT) of 6.6% of the vehicle's fair market value (some exceptions may apply).

Vehicles purchased before March 1, 2013, are liable for an annual Ad Valorem Tax. Calculate the taxes due for your vehicle on the Georgia Drives website using their tax estimator tool.

  • For electric vehicle owners, a “highway user fee” or an annual road usage fee has been placed at $310.32 for non-commercial vehicles and $196.45 for commercial vehicles for 2022.

Personal property taxes

Georgia localities collect personal property taxes on boats, aircraft, and some mobile homes with a combined value of more than $7,500. Cars purchased after March 1, 2013, are exempt. For more information contact your county board of tax assessors.

Alcohol tax

Beer in Georgia is subject to 4.5 cents of tax per 12-ounce bottle or can, with an additional uniform local beer tax of 5 cents per can.

Taxation on wine varies between 11 and 67 cents per liter, while liquor is taxed between 50 cents and $1.40 per liter, depending on the alcohol content and manufacturing location. There can also be a local tax of up to 22 cents per liter added to the cost of liquor, commonly known as the “by the drink” tax.

Wholesalers are responsible for paying the excise taxes, which may eventually be transferred to the retail price. Alcohol sales are further subject to sales tax.

Lottery winnings tX

Georgia lottery winnings are subject to state and federal income taxes. 5.75% of state and 24% of federal taxes are automatically withheld from prizes exceeding $5,000.

Real estate tax

Real estate transfer tax is collected when the title of the property is transferred to someone else and is calculated by the sales price or on the assessed value from a licensed appraiser. The rate is $1 per $1000 of the deed value amount.

For renting homes or rooms like Airbnb, hotel/motel occupancy taxes are often levied. Local governments can collect innkeeper's tax (up to 6%) not included in state-level sales taxes.

Tangible business property such as fixtures, machinery, and equipment within Georgia is subject to the personal property tax dependent on the county's tax rate and the property's arranged fair market value.

Tobacco products taxes

Tobacco products like cigars, cigarettes, and smokeless tobacco are subject to excise taxes paid by the distributor. Cigarettes have a 37 cents per pack tax, other tobacco products are taxed at 10% of wholesale cost.

Corporate taxes

There is a job tax credit for businesses that create new jobs in specific, targeted sectors.

Georgia levies franchise taxes on certain Public Law Corporations and aliens doing business in the state. Rates are determined based on the company's paid-in capital.

The corporate income tax rate in Georgia is 5.75% of a business’s net taxable income.

Film tax credits

The film industry enjoys a film tax credit, slotting Georgia to be one of the top film production states in the United States.

Miscellaneous taxes

Unemployment income is taxed in Georgia similarly to how the federal government taxes it.

Do My Heirs or I Need To Pay Inheritance or Estate Taxes?

In Georgia, heirs do not pay taxes on money or property that is inherited, as there is no estate or inheritance tax.

Do Georgia Seniors Receive Tax Benefits?

Georgia offers a tax exclusion of up to $35,000 for retired persons aged 62 to 64, and up to $65,000 for those aged 65 and higher (married couples must qualify separately as part-year residents).

Additionally, those 65 or older can claim a $1,300 standard deduction.

Retirement income includes interest, dividends, net rentals, capital gains, royalties, pensions, annuities, and the first $4,000 of earned income ($5,000 from 2024).

Social Security and Railroad retirement are exempt from the Georgia state income tax.

Those 62 and above may also be eligible for additional homestead exemptions for taxes on their primary residence.

Visit the Georgia Department of Revenue's website for more information on eligibility and how to apply.

Does Georgia Tax Military Benefits?

Veterans 62 or younger are exempt from taxes on up to $17,500 of military retired pay. Those with at least $17,500 of earned income are able to be exempt from taxes up to $35,000.

Veterans older than 62 are eligible for the same tax exemptions as other Georgia taxpayers. Active-duty pay is taxed like regular income if the veteran is a legal resident of Georgia.

If they are in the National Guard or reserves and serving in a combat zone, their income is exempt from state tax. Nonresidents stationed in Georgia must pay taxes on any income earned in the state, apart from military income.

What Is the Deadline for Filing Georgia Taxes in 2024?

Georgians who were affected by Hurricane Idalia in the designated counties and had a valid extension until October 16, 2023, to file their 2022 return will now have until February 15, 2024, to complete their return.

However, individuals who want to file income tax returns for the year 2024 can do so by April 15, 2024.

Are Out-of-State Pensions Taxed in Georgia?

In Georgia, if you're older than 62, receive a pension from any state (whether it's out-of-state or not), and you're a resident of Georgia, you get the same tax break that Georgia natives get — up to an exclusion of $65,000 for those aged 65 or older per taxpayer.

What Are Vehicle Taxes in Georgia?

Georgia has a one-time title ad valorem tax (TAVT) paid at the time of titling a vehicle, based on the vehicle's value - currently set at 7% for most cars.

For leases, the rate is set at 9%. The amount you pay is calculated based on the fair market value of the vehicle or the sales price, whichever is higher.

This tax replaced the state's annual ad valorem tax (commonly known as the "birthday tax"). However, annual registration fees still apply. The standard fee for passenger vehicles is $20, and it's $25 for lightweight trucks.

What To Expect in 2024 and the Coming Years

Assuming delays are not required, the following is the personal income tax rate schedule for January 1, 2024, to January 1, 2029:
  • January 1, 2024: 5.49%
  • January 1, 2025: 5.39%
  • January 1, 2026: 5.29%
  • January 1, 2027: 5.19%
  • January 1, 2028: 5.09%
  • January 1, 2029: 4.99%
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