Georgia state income tax

Updated

Georgia has a state income tax. It is flat, with a top marginal rate of 4.99%. Flat 4.99% on all taxable income for tax year 2026 (reduced from 5.19% by HB 463, signed May 11, 2026). Standard deduction $15,000 single/head of household/married filing separately, $30,000 married filing jointly. Further reductions of 0.125 percentage points are scheduled to begin January 1, 2027, continuing annually toward a 3.99% floor, but each year's cut is contingent on the state meeting statutory revenue-growth triggers (evaluated by the Office of Planning and Budget by Dec. 1); a missed trigger delays that year's cut by one year. This replaces the collector's note, which incorrectly stated a fixed schedule of 4.49% in 2027 and 3.99% in 2028. Capital gains are taxed as ordinary income (no special lower rate).

Does Georgia have a state income tax?

Yes. Georgia taxes individual income on a flat schedule topping out at 4.99%. Flat 4.99% on all taxable income for tax year 2026 (reduced from 5.19% by HB 463, signed May 11, 2026). Standard deduction $15,000 single/head of household/married filing separately, $30,000 married filing jointly. Further reductions of 0.125 percentage points are scheduled to begin January 1, 2027, continuing annually toward a 3.99% floor, but each year's cut is contingent on the state meeting statutory revenue-growth triggers (evaluated by the Office of Planning and Budget by Dec. 1); a missed trigger delays that year's cut by one year. This replaces the collector's note, which incorrectly stated a fixed schedule of 4.49% in 2027 and 3.99% in 2028.

Georgia income tax at a glance (reviewed August 29, 2026)
ItemGeorgia
State income taxYes, flat
Top marginal rate4.99%
Capital gainsTaxed as ordinary income, up to 4.99%
State sales tax4% (plus local)
Avg. property tax rate0.79% of home value
Estate / inheritance taxNone

How does Georgia tax capital gains?

Georgia has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 4.99%, on top of federal capital gains tax. See how capital gains tax works in 2026.

What about retirement income in Georgia?

Retirement income is taxed differently from wages in many states. For how Georgia treats Social Security, pensions, and 401(k)/IRA withdrawals, see Georgia retirement taxes.

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