Georgia has a 5.49% flat income tax rate in 2026, down from a graduated system that topped at 5.75%. At $100,000 income, a Georgia resident pays approximately $4,655 in state income tax (effective ~4.65%) after the standard deduction. The rate is scheduled to decrease incrementally to 4.99% by 2028. No local income tax. Georgia is a major Sun Belt relocation destination — Atlanta added more population than any metro area in the US in 2023.
At a glance
Key Facts
Income Tax Rate 2026
5.49% flat rate (reduced from 5.75% graduated; phasing to 4.99% by 2028)
4% state + local (typically 3%–4%) = 7%–8% combined; Georgia ranks among the highest combined sales tax states
Property Tax
Average effective rate ~0.86%; Fulton County (Atlanta) ~0.96%; varies widely by county
Introduction
Georgia's tax landscape changed significantly starting in 2024 when the state transitioned from a 6-bracket graduated income tax (1%–5.75%) to a single flat rate of 5.49%. The reform, passed as HB 1437 in 2022, also updated the standard deduction and began a gradual path toward a 4.99% rate by 2028.
The shift from graduated to flat primarily benefited higher earners (who previously faced 5.75% at lower thresholds) while reducing taxes marginally for all income levels. Atlanta's explosive population growth — driven by tech, film industry (Georgia has the most film productions in the US), and relocations from California and New York — makes Georgia's tax policy increasingly relevant to a wider national audience.
Section 01
GA Flat Tax: How the 5.49% Rate Compares to the Old System
Under the old graduated system (pre-2024), Georgia had 6 brackets from 1% to 5.75%. The top 5.75% rate applied to income above $7,000 (single) — a very low threshold, meaning almost all earners paid near the top rate on most income. The new flat rate of 5.49% is slightly lower than 5.75%, benefiting all earners but most visibly those near the old bracket boundaries.
Tax at key income levels under the 5.49% flat rate (single filer, $12,000 standard deduction, $7,000 personal exemption, taxable income = gross - $19,000):
$50,000 income: Taxable income $31,000. GA tax: $1,702. Effective rate: 3.4%
$100,000 income: Taxable income $81,000. GA tax: $4,447. Effective rate: 4.45%
$150,000 income: Taxable income $131,000. GA tax: $7,192. Effective rate: 4.79%
$250,000 income: Taxable income $231,000. GA tax: $12,682. Effective rate: 5.07%
$500,000+ income: Effective rate approaches 5.49% as deductions become a small percentage
Section 02
Georgia's Rate Phasedown: Road to 4.99%
HB 1437 established a path for Georgia's flat rate to decline over time. The planned schedule (subject to revenue triggers):
2024: 5.49%
2025: 5.39%
2026: 5.29%
2027: 5.19%
2028: 4.99%
Important note: The schedule above is the legislated plan. Each reduction is subject to a revenue trigger — if Georgia's general fund revenues fall short of the required threshold, the reduction is delayed. As of June 2026, the confirmed rate is 5.49% — verify the current applicable rate with the Georgia Department of Revenue, as the phasedown may have progressed or been delayed since this publication.
Section 03
Atlanta: Sun Belt Relocation Hub and the Tax Calculus
The Atlanta metro area added approximately 100,000 net new residents in 2023 — more than any other US metro — driven by domestic migration from high-tax states (primarily California and New York). For a Californian earning $200,000 who moves to Atlanta:
California income tax at $200K: ~$14,500 (effective ~7.25%)
Georgia income tax at $200K: ~$10,100 (effective ~5.05%)
Annual saving: ~$4,400
Add in significantly lower housing costs (Atlanta metro median home: ~$380,000 vs Los Angeles: ~$850,000) and the total economic picture for California-to-Georgia moves is substantial.
Georgia's film and TV production industry (dubbed the 'Hollywood of the South') — driven by a 30% transferable tax credit — has brought entertainment sector workers to Atlanta, creating a unique professional demographic alongside the traditional finance, logistics (Delta Air Lines hub), and tech (Google, Microsoft presence) sectors.
Section 04
Georgia Retirement Income Tax Treatment
Georgia offers generous retirement income exclusions that make it appealing for retirees:
Age 62 and over: First $35,000 of retirement income excluded from Georgia income tax (per person). For a married couple both over 62, this means $70,000 of retirement income is Georgia-tax-free.
Age 65 and over: Exclusion increases to $65,000 per person — meaning $130,000/couple of retirement income is Georgia-tax-free.
Social Security: Fully excluded from Georgia income tax.
These exclusions make Georgia particularly attractive for retirees. A 65+ couple receiving $80,000 in combined Social Security plus $50,000 in pension income would owe approximately $0 in Georgia income tax on all of that income (Social Security exempt + pension within the $65,000 exclusion per person).
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Georgia's income tax rate for 2026 is 5.49% flat. This replaced a graduated 6-bracket system (1%–5.75%) starting in 2024. The standard deduction is $12,000 (single) and $24,000 (married), and there's a $7,000 personal exemption (single). The rate is planned to decrease to 4.99% by 2028, subject to revenue triggers.
Q
Does Georgia have local income taxes?
No. Georgia has no city or county income taxes. The 5.49% state flat rate is the entire state and local income tax burden.
Q
How does Georgia tax retirement income?
Georgia exempts Social Security benefits and provides retirement income exclusions: $35,000/person for ages 62–64 and $65,000/person for ages 65+. A retired couple both aged 65+ can exclude $130,000 in combined retirement income from Georgia taxes. This makes Georgia one of the more retirement-friendly states in the Southeast.
Q
Why is Atlanta attracting so many relocating workers?
Atlanta offers a combination of no local income tax, a state income tax rate declining toward 4.99%, much lower housing costs than coastal metros (median home ~$380,000 vs $850,000 in LA), a major airport hub (busiest in the world by passengers), and a diverse economy (logistics, film/TV, tech, healthcare). The cost-of-living to salary ratio is among the best of any major US metro.
Q
What is Georgia's sales tax rate?
Georgia's state sales tax is 4%. Counties add local taxes typically 3%–4%, giving combined rates of 7%–8% in most of the state. Fulton County (Atlanta) charges 8.9% combined. Groceries are exempt from the state 4% rate but subject to county taxes.
Q
How does Georgia's flat tax affect high earners vs lower earners?
The switch to a flat 5.49% rate reduced taxes slightly for all earners compared to the old 5.75% top bracket. Higher earners benefit proportionally more because a larger share of their income was previously taxed at 5.75%. Very low earners who were entirely in the 1%–2% lower brackets under the old system actually pay more under the flat system, though the updated standard deduction partially offsets this.
Disclaimer:This guide is for educational purposes only and does not constitute tax or legal advice. Tax rates and rules change annually. Consult a qualified CPA or tax attorney for advice specific to your situation.