Georgia Flat Tax Rate
Georgia transitioned from a 6-bracket progressive system to a flat income tax rate in 2024. The current rate of 5.49% applies to all taxable income (after the standard deduction) regardless of amount.
The flat rate is scheduled to decrease gradually: 5.39% in 2026, 5.29% in 2027, 5.19% in 2028, and reaching 4.99% by 2029. This planned reduction makes Georgia increasingly competitive with other flat-rate states.
| Gross Income | Standard Deduction | GA Taxable Income | GA Tax (5.49%) | Effective Rate |
|---|---|---|---|---|
| $40,000 | $12,000 | $28,000 | $1,537 | 3.8% |
| $65,000 | $12,000 | $53,000 | $2,910 | 4.5% |
| $85,000 | $12,000 | $73,000 | $4,008 | 4.7% |
| $120,000 (MFJ) | $24,000 | $96,000 | $5,270 | 4.4% |
Georgia Deductions
Georgia's $12,000 standard deduction for single filers ($24,000 married filing jointly) is among the most generous state standard deductions in the country. This large deduction combined with the flat rate creates an effective progressive system — lower-income earners benefit more from the deduction as a percentage of their income.
Georgia also allows itemized deductions that generally conform to federal itemized deductions, including mortgage interest, charitable contributions, and state taxes paid (excluding Georgia income tax). If your itemized deductions exceed the standard deduction, you should itemize on your Georgia return.
Georgia Retirement Income Exclusion
Georgia provides one of the more generous retirement income exclusions in the Southeast. Taxpayers aged 62-64 can exclude up to $35,000 per person in retirement income. Taxpayers 65 and older can exclude up to $65,000 per person ($130,000 for a married couple filing jointly).
Qualifying retirement income includes pensions, annuities, interest, dividends, capital gains, rental income, and royalties. Social Security benefits are fully excluded regardless of age or income level.
A married couple both aged 65+, receiving $100,000 in combined pension income and $40,000 in Social Security, would exclude the entire $140,000 from Georgia tax — paying $0 in state income tax on $140,000 of income.
Georgia vs Other Southern States
| State | Rate Structure | Tax on $75K (Single) | Retirement Friendly? |
|---|---|---|---|
| Georgia | Flat 5.49% | $3,460 | Yes — $65K exclusion 65+ |
| North Carolina | Flat 4.5% | $2,619 | Moderate — SS exempt |
| South Carolina | Progressive 0-6.4% | $3,150 | Yes — $10K deduction 65+ |
| Tennessee | No income tax | $0 | Yes — no tax at all |
| Florida | No income tax | $0 | Yes — no tax at all |
Frequently Asked Questions
Georgia transitioned to a flat income tax rate of 5.49% starting in 2024, replacing its previous 6-bracket progressive system. The rate is scheduled to gradually decrease to 4.99% by 2029.
Georgia offers a generous standard deduction of $12,000 for single filers and $24,000 for married filing jointly. This is significantly higher than most states and helps offset the flat rate.
No. Georgia does not tax Social Security retirement benefits. Additionally, taxpayers 62 and older can exclude up to $65,000 per person ($130,000 per couple) of retirement income from Georgia state tax.
No. Georgia does not currently offer a state Earned Income Tax Credit. However, the federal EITC still applies to Georgia residents and can be claimed on federal returns.
Georgia state tax returns are due April 15, matching the federal deadline. An automatic 6-month extension is available by filing Form IT-303.
Yes. Under House Bill 1015 (signed 2022), Georgia's flat rate is scheduled to decrease by 0.1% per year until it reaches 4.99%. The 2025 rate is 5.49%, expected to reach 4.99% by approximately 2029.