Georgia has a flat state income tax rate of 5.39% on all taxable income. Georgia recently transitioned from a progressive tax system to a flat tax, simplifying withholding calculations for employers and employees.
Georgia Flat Tax Rate
| Taxable Income | Tax Rate |
|---|---|
| All income | 5.39% |
Georgia transitioned to a flat tax in 2024. The rate is scheduled to decrease to 4.99% by 2029. These figures are based on Georgia Department of Revenue guidelines.
What You'll See on Your Paystub
A Georgia worker's paystub includes both federal income tax withholding and state deductions:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | Varies | Based on W-4 and income |
| Social Security | 6.2% | Up to $181,200 wage base |
| Medicare | 1.45% | No wage limit |
| Georgia State Income Tax | 5.39% | Flat rate on all taxable income |
Georgia Standard Deduction
Georgia offers a standard deduction that reduces your taxable income:
| Filing Status | Standard Deduction (2026) |
|---|---|
| Single | $12,000 |
| Married Filing Jointly | $24,000 |
| Head of Household | $18,000 |
Georgia's new standard deduction is much higher than under the previous system, offsetting some of the impact of the flat tax rate.
No Local Income Taxes
Georgia does not allow cities or counties to impose local income taxes. Your state withholding covers all Georgia income tax obligations.
Atlanta Metro Workers
Special considerations for Atlanta metro workers:
- No city income tax (unlike some other major cities)
- High concentration of Fortune 500 companies
- Many employers in tech, finance, entertainment, and logistics
- Traffic congestion may encourage remote work arrangements
Retirement Income
Georgia offers tax benefits for retirees:
- Social Security benefits are fully exempt
- Up to $65,000 exclusion for retirement income (ages 62-64)
- Up to $65,000 exclusion for retirement income (age 65+)
- Military retirement pay qualifies for exclusion
Film & Entertainment Industry
Georgia's growing film industry has special considerations:
- Film production workers follow standard withholding rules
- Per diem and travel allowances are common
- Project-based work may require adjusted withholding
- Georgia offers generous film tax credits (for productions, not workers)
Georgia vs. Neighboring States
| State | Tax Structure | Rate |
|---|---|---|
| Georgia | Flat | 5.39% |
| Florida | None | 0% |
| Tennessee | None | 0% |
| South Carolina | Progressive | 6.2% |
| North Carolina | Flat | 4.5% |
| Alabama | Progressive | 5% |
Comparing Take-Home Pay
Here's how a $75,000 annual salary in Georgia compares to other states:
| State | Effective Rate | Annual State Tax |
|---|---|---|
| Georgia | ~4.5% | ~$3,400 |
| Florida | 0% | $0 |
| North Carolina | ~4.0% | ~$2,650 |
Future Rate Reductions
Georgia's flat tax rate is scheduled to decrease:
| Year | Tax Rate |
|---|---|
| 2026 | 5.39% |
| 2027 | 5.29% |
| 2028 | 5.19% |
| 2029+ | 4.99% |
As Georgia's rate decreases, it will become more competitive with neighboring North Carolina's 4.5% rate.