Georgia has a state income tax, and it applies to most residents and workers
Yes, Georgia charges a state income tax on wages, investment income, and other earnings. If you live in Georgia or work there, you will owe state income tax in addition to federal income tax. Georgia's state income tax rate is a flat 5.75% on most types of income, which is lower than many other states but higher than a handful of states that have no income tax at all.
The tax applies to Georgia residents on all income they earn, regardless of where the work happens. If you are not a Georgia resident but work in Georgia, you may also owe Georgia income tax on the wages you earn in the state, though you can usually claim a credit on your home state's return to avoid paying twice on the same income.
Key Takeaways
- Georgia's state income tax rate is a flat 5.75% on wages, interest, dividends, and most other income sources.
- You owe Georgia income tax if you are a resident, even if you earn money outside the state.
- Non-residents who work in Georgia owe tax on Georgia wages only, and can usually claim a credit to avoid double taxation.
- Georgia offers a standard deduction and allows you to claim dependents, which reduces the income you actually pay tax on.
- Retirement income, including Social Security and some pension income, may be partially or fully exempt from Georgia state tax.
Who has to pay Georgia income tax
Georgia residents must file a state income tax return if their income exceeds the standard deduction for their filing status. For the 2024 tax year, the standard deduction is $3,100 for single filers and $6,200 for married couples filing jointly. If your income is below these amounts, you do not owe Georgia income tax, though you may still want to file to claim refundable credits.
Non-residents who work in Georgia owe tax only on the income they earn within the state. If you live in another state and commute to Georgia for work, you will owe Georgia income tax on your wages but can claim a credit on your home state return for taxes paid to Georgia. Some states have reciprocal agreements with Georgia that may reduce or eliminate this tax, so check with your home state's tax authority if you work across state lines.
Military members stationed in Georgia and spouses of military members may have different rules depending on whether they are Georgia residents for tax purposes. If you are military, contact the Georgia Department of Revenue or a tax professional to confirm your filing requirement.
What income is taxed and what is exempt
Georgia taxes most types of income at the flat 5.75% rate: wages from employment, self-employment income, interest, dividends, capital gains, rental income, and business profits. The same income you report on your federal return is generally taxable in Georgia as well.
Some income sources are partially or fully exempt from Georgia tax. Social Security benefits are not taxed in Georgia. Certain pension and retirement income is also exempt: if you are over 65 and receive income from a pension, annuity, or Individual Retirement Account (IRA), you may exclude up to $35,000 of that income from Georgia taxation. Military retirement pay and some federal employee retirement income have their own exemptions. If you receive retirement income, check the Georgia Department of Revenue website or speak with a tax professional to see which of your sources may have access to for the exemption.
Income from Georgia state and local bonds is exempt from Georgia tax. Income from U.S. Treasury bonds and bonds from other states is taxable in Georgia.
How to file Georgia income tax
You file Georgia income tax using Form IT-1, the Georgia Individual Income Tax Return. You can file on paper by mailing the form to the Georgia Department of Revenue, or you can file electronically through the state's online system or through tax software. Most tax software programs (TurboTax, H&R Block, TaxAct, and others) include Georgia state returns and will walk you through the process step by step.
The important date to file is the same as the federal important date: April 15 of the year following the tax year, unless that date falls on a weekend or holiday. If you cannot file by the important date, you can request an extension, which gives you until October 15 to file without penalty, though any taxes owed are still due by April 15.
If you owe Georgia income tax, you can pay online through the Georgia Department of Revenue website, by mail, or through an electronic funds withdrawal when you file. If you are owed a refund, you can choose to receive it by check or direct deposit to your bank account.
Deductions and credits that reduce your Georgia tax
Georgia allows you to claim the same standard deduction used on your federal return, or you can itemize deductions if that amount is higher. The standard deduction varies by filing status and age. You can also claim a personal exemption of $3,100 for yourself, your spouse (if filing jointly), and each dependent you support.
Georgia offers several tax credits that can reduce the amount of tax you owe. The Georgia Child and Dependent Care Credit helps offset childcare expenses. The Georgia Education Credit provides a tax break for contributions to a Georgia 529 college savings plan. The Earned Income Credit (Georgia's version of the federal EITC) may provide a refund if your income is low enough. Some credits are refundable, meaning you can receive money back even if you owe no tax; others only reduce your tax bill to zero.
If you are over 65, you may also be able to claim an additional exemption. Check the Georgia Department of Revenue website or Form IT-1 instructions to see which credits and exemptions explore to your situation.
Differences between Georgia and other states
Georgia's 5.75% flat tax rate is moderate compared to other states. Nine states have no income tax at all (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire, which taxes only interest and dividends). Several states have rates lower than Georgia: Colorado, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Mississippi, Missouri, North Carolina, and Pennsylvania all tax income at rates between 2% and 5.75%. Many states have higher rates: California, New York, Oregon, and others charge 8% to 13% or more.
Georgia's treatment of retirement income is more generous than many states. The $35,000 exemption for pension and retirement income is one of the largest in the country, which makes Georgia attractive to retirees. However, Georgia does not exempt military retirement pay the way some states do, so military retirees may owe more in Georgia than they would elsewhere.
What to do if you have questions about Georgia income tax
The Georgia Department of Revenue maintains a website with forms, instructions, and frequently asked questions. You can call their taxpayer information line at 404-417-2100 during business hours, or you can submit a written question through their website. Response times vary, but written questions typically receive answers within two to three weeks.
If you are unsure whether you owe Georgia income tax, whether you may have access to for exemptions or credits, or how to file, a tax professional or certified public accountant (CPA) can review your situation and guide you through the process. Many tax preparation services also offer phone support while you file.
Frequently Asked Questions
Do I have to file a Georgia return if I only lived there part of the year?
If you were a Georgia resident for any part of the tax year and earned income, you generally must file a Georgia return on the income earned while you were a resident. If you moved to Georgia partway through the year, you file as a part-year resident and report only the income earned after you moved. Contact the Georgia Department of Revenue if you are unsure of your filing requirement.
Is Social Security taxed in Georgia?
No. Social Security benefits are completely exempt from Georgia state income tax. You do not report them on your Georgia return, and they do not count toward your income for determining whether you must file.
Can I deduct federal income tax paid from my Georgia return?
No. Georgia does not allow you to deduct federal income tax paid. You can only deduct state and local taxes (SALT) on your federal return, up to $10,000 per year, but Georgia does not offer a reciprocal deduction on the state level.
What happens if I do not file a Georgia income tax return when I owe tax?
The Georgia Department of Revenue can assess penalties and interest on unpaid taxes. Penalties typically start at 5% of the unpaid tax and increase over time. Interest accrues daily on the unpaid balance. If you owe and have not filed, contact the Georgia Department of Revenue to discuss payment options or a payment plan.
Does Georgia tax retirement income differently than wages?
Yes. Retirement income from pensions, annuities, and IRAs may be partially exempt if you are over 65, up to $35,000 per year. Wages are always fully taxable. Social Security is never taxed. This makes retirement income more favorable than wages under Georgia tax law.