Tax in Georgia: a complete guide
If you’re contemplating moving to Georgia, you need to learn as much as you can about the state before you make a decision. This includes exploring how the tax system works and whether the overall tax burden will suit you.
Georgia income tax
Wherever you reside in the US, you’ll be legally required to pay federal income tax on your earnings according to the income bracket you fall into. You’ll have to pay state income tax in most places, too. Unlike its not-so-common neighbor to the south, Florida, Georgia does have a state-level individual income tax.
This tax is graduated, consisting of six different income brackets that will determine the amount you owe:
A single filer
| Taxable income | State income tax amount |
|---|---|
| $0–$750 | one percent of your income |
| $751–$2,250 | $8, and two percent over $750 |
| $2,251–$3,750 | $38, and three percent over $2,250 |
| $3,751–$5,250 | $83, and four percent over $3,750 |
| $5,251–$7,000 | $143, and five percent over $5,250 |
| $7,001 upwards | $230, and 5.75 percent over $7,000 |
A married person/registered domestic partner filing separately
| Taxable income | State income tax amount |
|---|---|
| $0–$500 | one percent of your income |
| $501–$1,500 | $5, and two percent over $500 |
| $1,501–$2,500 | $25, and three percent over $1,500 |
| $2,501–$3,500 | $55, and four percent over $2,500 |
| $3,501–$5,000 | $95, and five percent over $3,500 |
| $5,001 upwards | $170, and 5.75 percent over $5,000 |
A married person/registered domestic partner filing jointly OR a head of household
| Taxable income | State income tax amount |
|---|---|
| $0–$1,000 | one percent of your income |
| $1,001–$3,000 | $10, and two percent over $1,000 |
| $3,001–$5,000 | $50, and three percent over $3,000 |
| $5,001–$7,000 | $110, and four percent over $5,000 |
| $7,001–$10,000 | $190, and five percent over $7,000 |
| $10,001 upwards | $340, and 5.75 percent over $10,000 |
There’s also a state-level tax on corporate income in Georgia charged at a flat rate of 5.75 percent (in line with the highest bracket above). Any corporation that owns property, does business or receives income from Georgia must pay this. A net worth tax may also apply over a certain threshold.
Georgia sales tax
The statewide rate for Georgia sales and use tax is four percent, making it one of the lowest in the US. On top of this, local jurisdictions and districts can charge additional sales and use tax up to a maximum of five percent. This means that you could be charged a maximum of nine percent, but in reality, the average combined tax is 7.4 percent.
Most purchasable products and certain services will fall under this sales tax, but some exemptions exist. Prescription drugs, for instance, are fully tax-exempt. Groceries are exempt from the statewide tax but may be taxed locally.
Vehicles in Georgia aren’t covered by sales tax but by a different tax known as Title Ad Valorem Tax (TAVT), which we’ll explore more fully in the motor tax section below. Restricted items are subject to so-called “sin taxes” above standard rates. In Georgia:
| Product | Cost |
|---|---|
| Any tobacco products other than cigarettes and cigars | Ten percent of the manufacturer’s price |
| Beer | $1.01 per gallon |
| Cigarettes | $0.37 per pack |
| Cigars | 23 percent of the manufacturer’s price |
| Liquor | $3.79 per gallon |
| Vapor products | $0.05 per milliliter for closed systems, seven percent of the manufacturer’s price for open systems and disposables |
| Wine | $1.51 per gallon |
Georgia property tax
If you’re planning to buy a home in Georgia, you’ll need to pay property tax according to the value of your purchase. The average property tax rate in the state is $812 per $100,000 of home value, though the exact amount you’ll pay will depend on the county you reside in
| Georgia county | Median annual property tax payment |
|---|---|
| Atkinson | $376 |
| Bryan | $1,495 |
| Carroll | $928 |
| DeKalb | $1,977 |
| Fayette | $2,635 |
| Hancock | $571 |
| Jones | $990 |
| Lumpkin | $1,258 |
| Putnam | $747 |
| Worth | $648 |
Georgia estate tax
Estate tax might massively reduce the amount you can leave to your next of kin, and inheritance tax could reduce the amount they can receive. Thankfully, since there are only 13 states currently levying an estate tax (and six currently levying an inheritance tax), and Georgia isn’t among them, it’s something you should be able to avoid in the Peach State.
Regardless of where you reside in the US, however, you must follow federal rules and requirements.
Georgia motor tax
In many states, including neighboring Florida, the purchase of a motor vehicle is covered by sales tax. In Georgia, this isn’t the case. Before 2013, vehicle purchases were covered by sales tax and an annual “Ad Valorem” tax. Things have changed since March of 2013 and the introduction of Title Ad Valorem Tax (TAVT).
TAVT is a one-off tax charged at seven percent of retail value. It applies to any ownership change, new vehicle purchase or vehicle brought into Georgia from another state (but it doesn’t apply to untitled vehicles like boats and trailers). TAVT negates the need for vehicles to be subject to sales tax and applies to every titled purchase after March 1, 2013.
Having bought a car and paid the applicable TAVT, you might wonder how you’ll be taxed on your car’s fuel in Georgia. Although they were recently suspended, motor fuel taxes were reinstated at the start of 2023. At the wholesale level, gasoline is taxed at $0.291 per gallon, while diesel is taxed at $0.326 per gallon.
Georgia retirement tax
As a baseline, Social Security benefits aren’t taxed in Georgia.
On top of this, retirement income up to $65,000 can be excluded from taxation for those aged 65 and over, with income up to $35,000 excluded for taxpayers between 62 and 64. The exclusion limits are per individual, so a married couple aged 65 or over can exclude up to $130,000.
Retirement income eligible for exclusion includes:
Capital gains
Dividends
First $4,000 of earned income (rising to $5,000 in 2024)
Interest
Net income from rental properties
Royalties
Taxable annuities
Taxable IRA distributions
Taxable pensions (including military pensions)
This system makes Georgia an attractive retirement destination for many entering their golden years looking to avoid steep taxation rates.
Whatever the particulars of your situation, you should now have a clear sense of your tax burden as a Georgia resident and, thus, a clear understanding of whether the Peach State is suitable for you from that standpoint.
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.