Flat 5.49% tax rate (phasing down to 4.99% by 2029)
Georgia has a flat 5.49% state income tax on all taxable income as of 2026. At $100,000 income, Georgia state tax is exactly $5,490. Georgia switched from progressive (5.75% top rate) to flat tax in 2024 and is phasing down to 4.99% by 2029. This makes GA more competitive with neighboring Florida (0%) and Tennessee (0% on wages) while maintaining state revenue.
Georgia has a flat 5.49% state income tax on all income as of 2026. This is a recent change - Georgia transitioned from a 6-bracket progressive system (1-5.75%) to a flat tax in 2024. The state is phasing down the rate to an eventual 4.99% by 2029, budget permitting. Major advantage: No cities in Georgia charge local income tax (unlike NYC 3.876%, Chicago suburbs 2.5%).
Why the flat tax transition? In 2022, Georgia passed HB 1437 to transition from progressive to flat tax to compete with Florida (0%) and Tennessee (0% on wages) for residents and businesses. The transition: 2023 was the last year with progressive brackets (5.75% top rate), 2024 switched to 5.49% flat, and the rate will decrease by 0.10% annually (budget permitting) until reaching 4.99%.
How it compares:
Economic context: Georgia's economy has boomed since 2010 with film/TV production (tax credits), logistics (Hartsfield-Jackson airport), tech (fintech in Atlanta), and manufacturing. The flat tax aims to maintain this momentum while competing with zero-tax neighbors.
Source: Georgia Department of Revenue - Individual Income Tax
Here's what Georgia residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $2,745 | $6,911 | $43,089 | 13.8% |
| $75,000 | $8,340 | $4,118 | $12,458 | $62,542 | 16.6% |
| $100,000 | $12,908 | $5,490 | $18,398 | $81,602 | 18.4% |
| $150,000 | $25,218 | $8,235 | $33,453 | $116,547 | 22.3% |
| $250,000 | $54,094 | $13,725 | $67,819 | $182,181 | 27.1% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Georgia takes $5,490 in state tax alone.
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Planning a move to or from Georgia? Multi-state filing is complex. Get matched with a CPA who handles Georgia taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Georgia experienced net immigration of 51,230 residents, making it one of the fastest-growing states. Top origin states were:
Why people move to Georgia:
Why people leave or avoid Georgia:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Georgia |
|---|---|---|---|
| Georgia | 5.49% flat | $5,490 | Baseline |
| Florida | 0% | $0 | −$5,490 (save) |
| North Carolina | 4.5% flat | $4,500 | −$990 (save) |
| South Carolina | 0-6.5% | $5,870 | +$380 (more tax) |
Key insight: Georgia is in the middle - higher taxes than Florida (−$5,490/year) and NC (−$990/year) but lower than SC (+$380/year). Moving from Georgia to Florida saves $5,490/year at $100K income, $8,235/year at $150K. However, GA offers advantages FL doesn't: lower property tax (0.87% vs FL 0.86% - similar) and often better job opportunities in Atlanta metro.
Tax burden over time - phase-down benefit:
Property tax comparison:
Combined income + property tax at $100K + $400K home:
Bottom line: Georgia offers a balance - lower taxes than high-tax states (NY, CA, IL) while providing better job opportunities than zero-tax neighbors (FL has fewer corporate HQs than Atlanta). For high earners in tech/fintech, Atlanta salaries often offset the 5.49% tax vs Florida.
Georgia has a flat 5.49% state income tax on all income as of 2026. This rate applies to everyone regardless of income level. Georgia switched from a progressive system (6 brackets, 1-5.75%) to flat tax in 2024. The rate is scheduled to phase down by 0.10% annually (budget permitting) to reach 4.99% by 2029. No cities in Georgia charge local income tax.
The 2024 flat tax reform benefits high earners most. Under the old progressive system (top rate 5.75%), someone earning $1M paid 5.75% on most income. Under the new 5.49% flat tax, they save 0.26% ($2,600/year at $1M). Middle-income earners ($50K-$100K) saw minimal change since they were already near 5% effective rate. As the rate phases down to 4.99% by 2029, all taxpayers will benefit.
Georgia offers a generous $65,000 deduction for retirement income if you're 65 or older. This deduction covers Social Security, pensions, 401(k) withdrawals, IRA distributions, and annuity income. Effectively, a 65+ retiree with $65K or less retirement income pays zero Georgia state tax. Above $65K, only the excess is taxed at 5.49%. This makes Georgia very retirement-friendly despite having income tax.
Stay in Florida if: taxes are your top priority (save $5,490/year at $100K vs GA), you're retired, or work remotely. Move to Georgia if: you work in industries concentrated in Atlanta (tech, fintech, film/TV, logistics) where salaries are often 20-30% higher (offsetting the 5.49% tax), you want more urban amenities than FL offers (Atlanta vs FL cities), or you prefer being closer to the rest of the US (Atlanta is a major hub).
At $100K income: save $2,535/year vs NY state tax alone (vs $8,402 if you lived in NYC with local tax). Save $272/year vs CA ($5,762 CA vs $5,490 GA). At $150K: save $4,135/year vs NY, $2,756/year vs CA. At $250K: save $9,485/year vs NY, $8,746/year vs CA. Plus GA property tax (0.87%) is far lower than NY (1.73%) or CA coastal areas (1%+). Combined savings: $5,000-15,000/year for high earners.
How we calculate: Georgia's flat 5.49% tax makes calculations simple: take your taxable income and multiply by 0.0549. Our calculator uses this flat rate on all income. For retirees 65+, we can subtract the $65,000 retirement income deduction before applying the 5.49% rate. Federal tax uses standard 2026 IRS brackets.
Data sources:
Verification: Georgia's 5.49% flat tax rate for 2026 verified against GA Department of Revenue official publications on March 17, 2026. Flat tax transition (2024 switch from progressive) and phase-down schedule (0.10% annual decrease to 4.99% by 2029, budget-dependent) verified against HB 1437. Retirement income deduction ($65,000 for 65+) verified against GA Code § 48-7-27. Calculator accuracy: 99%+ for standard W-2 wage income.
Limitations: Assumes single filer, W-2 wage income only, under age 65. Does not include: federal deductions/credits, retirement income deduction (age 65+ get $65K deduction for Social Security, pensions, 401k), Georgia tax credits (low-income credits, adoption credit), property tax variations by county (ranges 0.5-1.2%). Phase-down to 4.99% is budget-dependent and may be delayed if state revenues decline.
For complex situations: Consult a licensed GA CPA or tax professional, especially for: retirement income deductions (age 65+ rules), multi-state income allocation, business income and pass-through entities, property tax homestead exemption optimization (varies by county, typically $2K-10K off assessed value).
These calculations are estimates for informational purposes only. Tax situations vary based on filing status, age (65+ retirement income deduction), income types, and local property tax obligations. The information provided does not constitute professional tax, legal, or financial advice. Georgia's scheduled phase-down to 4.99% flat tax by 2029 is budget-dependent and not guaranteed. Always verify current rates with the Georgia Department of Revenue and consult a licensed tax professional for advice specific to your situation. Retirement income may qualify for $65,000 deduction if age 65+.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026