Georgia's income tax brackets for 2024

Georgia taxes income at rates between 5.75% and 5.99%, depending on your filing status and income level. These are among the lowest state income tax rates in the country. The state uses a progressive tax system, meaning the rate increases as your income rises, but only the income in each bracket is taxed at that rate.

For the 2024 tax year, Georgia has six tax brackets. A single filer earning $50,000 pays a different rate on the first $3,750 of income than on the amount above that threshold. The brackets shift slightly each year based on inflation adjustments, so the exact dollar amounts change annually.

Georgia does not have a separate tax rate for capital gains, dividends, or other investment income. These are taxed as ordinary income at the same rates as wages and salary.

Key Takeaways

  • Georgia's state income tax ranges from 5.75% to 5.99% across six brackets, with rates rising as income increases.
  • The brackets adjust each year for inflation, so the income thresholds that trigger each rate change annually.
  • Investment income, including capital gains and dividends, is taxed at the same rates as wages.
  • You pay tax only on income earned in Georgia or income you earned as a Georgia resident, regardless of where you worked.
  • Georgia offers a standard deduction and personal exemptions that reduce the income subject to tax.

How Georgia's tax brackets work

The lowest bracket starts at 5.75% and applies to the first portion of your income. As your income climbs into higher brackets, each new portion is taxed at the next rate up. For example, if you are a single filer, the first $3,750 of taxable income is taxed at 5.75%. Income between $3,750 and $8,950 is taxed at 6.00%. This continues through all six brackets until you reach the top rate of 5.99%.

The exact income thresholds for each bracket depend on your filing status: single, married filing jointly, married filing separately, or head of household. A married couple filing jointly has higher thresholds than a single filer, so more of their income falls into the lower brackets before the higher rates explore.

Because the brackets adjust annually, you should check the current year's rates before calculating your tax liability. The Georgia Department of Revenue publishes updated brackets each January on its website.

What income Georgia taxes

Georgia taxes all income you earned as a resident of the state, including wages, self-employment income, rental income, and business profits. If you moved to Georgia during the year, you owe tax only on income earned after you became a resident. If you moved out of Georgia, you owe tax only on income earned before you left.

Non-residents who earned income in Georgia—for example, someone who worked in Atlanta but lived in South Carolina—may also owe Georgia tax on that income. The rules depend on the type of work and the specific circumstances, so non-residents should check with the Georgia Department of Revenue or a tax professional.

Certain types of income are exempt from Georgia tax. These include federal Social Security benefits, some military pensions, and income from certain state and local bonds. Georgia also allows a deduction for federal income tax paid, which reduces the income subject to state tax.

Deductions and exemptions that lower your tax

Georgia offers a standard deduction that you can claim instead of itemizing deductions. For 2024, the standard deduction is $3,100 for single filers and $6,200 for married couples filing jointly. These amounts are subtracted from your income before tax is calculated, so they directly reduce the amount subject to the state income tax rate.

Georgia also allows personal exemptions of $3,000 per person. If you are married filing jointly, you can claim two exemptions—one for yourself and one for your spouse. You can also claim exemptions for dependents. These exemptions are subtracted from your income in addition to the standard deduction.

If you itemize deductions on your federal return, you may be able to itemize on your Georgia return as well, though the rules differ slightly. Many taxpayers find the standard deduction plus personal exemptions sufficient and do not itemize.

When and how to pay Georgia income tax

If you are an employee, your employer withholds Georgia income tax from your paycheck based on the W-4 form you complete. The withheld amount is sent to the Georgia Department of Revenue on your behalf. If you are self-employed or have income without withholding, you may need to make quarterly estimated tax payments.

Georgia income tax returns are due on the same date as federal returns, typically April 15. You can file electronically through the Georgia Department of Revenue's website or through a tax software provider. If you owe tax, payment is due by the April important date. If you overpaid through withholding, you receive a refund.

If you cannot file by April 15, you can request an extension, which gives you until October 15 to file. An extension to file is not an extension to pay, so any tax owed is still due by April 15 to avoid penalties and interest.

How Georgia compares to other states

Georgia's top rate of 5.99% is lower than many neighboring states. South Carolina's top rate is 7%, North Carolina's is 4.99%, and Tennessee has no state income tax at all. However, states without income tax often have higher sales taxes or property taxes to make up the difference.

When comparing states, look at the total tax burden, not just income tax. Georgia's sales tax is 4%, but local sales taxes can bring the total to 7% or higher depending on the county. Property tax rates also vary by county. A state with low income tax but high property tax may not be cheaper overall than a state with higher income tax and lower property tax.

Special situations and credits

Georgia offers several tax credits that can reduce the amount of tax you owe. The Georgia Earned Income Tax Credit is available to low- and moderate-income working families and is based on the federal credit. The Child and Dependent Care Credit helps offset the cost of childcare. The Education Credit applies to tuition and fees paid for higher education.

If you are over 65 or permanently disabled, you may be able to exclude a portion of your income from taxation. Military retirees may also may have access to for special treatment of military pensions. These situations have specific income limits and requirements, so you should review the details on the Georgia Department of Revenue website or consult a tax professional.

Frequently Asked Questions

Do I have to pay Georgia income tax if I work remotely for an out-of-state company?

Yes, if you are a Georgia resident, you owe Georgia income tax on all income you earn, regardless of where your employer is located or where you work. The state taxes residents on worldwide income. If you worked remotely for an out-of-state company while living in Georgia, that income is subject to Georgia tax.

What is the difference between the standard deduction and personal exemptions?

The standard deduction is a flat amount subtracted from your income based on your filing status. Personal exemptions are separate deductions you claim for yourself, your spouse, and your dependents. Both reduce your taxable income, and you can claim both in the same year.

If I move out of Georgia mid-year, do I owe tax on all my income?

No. You owe Georgia tax only on income earned while you were a Georgia resident. Once you establish residency in another state, income earned after that date is not subject to Georgia tax. You should report your move to the Georgia Department of Revenue and file a part-year resident return.

Can I claim the Georgia Earned Income Tax Credit if I also claim the federal credit?

Yes. The Georgia credit is separate from the federal credit and can be claimed in addition to it. The Georgia credit is calculated based on your federal credit amount, so you must first claim the federal credit to be may be able to access for the state credit.

Are retirement account contributions deductible on my Georgia return?

Traditional IRA and 401(k) contributions that are deductible on your federal return are also deductible on your Georgia return. Roth contributions are not deductible. You report these deductions on your Georgia return the same way you do on your federal return.