Georgia has a state income tax, and it applies to most residents and workers

Georgia charges state income tax on wages, investment income, and other earnings. The tax rate is a flat 5.75 percent on your federal taxable income, which means everyone in the state pays the same percentage regardless of how much they earn. This is different from the federal system, which uses tax brackets that increase with income.

The state also taxes capital gains, dividends, and retirement distributions in most cases. If you work in Georgia or live there, you will owe state tax unless you fall into a narrow group of exemptions — primarily people over 65 with retirement income, and certain military retirees.

Key Takeaways

  • Georgia's state income tax rate is a flat 5.75 percent applied to your federal taxable income.
  • You owe Georgia state tax if you live in the state or earn income there, even if you work remotely for an out-of-state employer.
  • Retirees over 65 may not owe tax on retirement income, pensions, and Social Security, depending on the source and amount.
  • Military retirees and their survivors can exclude military retirement pay from state taxable income.
  • Georgia allows you to claim the same deductions you use on your federal return, which lowers your state taxable income.

Who has to pay Georgia state income tax

You owe Georgia state income tax if you are a resident of the state. Residency for tax purposes means you lived in Georgia for more than six months of the year, or you maintained a permanent home there and spent any part of the year in the state. If you moved to Georgia partway through the year, you owe tax on income earned after you arrived.

Non-residents who work in Georgia also owe state tax on income earned within the state, even if they live elsewhere. This includes people who work remotely for a Georgia employer or have a business location in Georgia. If you live in another state but work in Georgia, you may be able to claim a credit on your home state's return to avoid paying tax twice on the same income.

If you are a full-time student at a Georgia college or university, you are generally treated as a resident for tax purposes during your time in school, even if your parents live out of state.

Income that is taxed and income that is not

Georgia taxes wages, salaries, tips, and self-employment income. It also taxes interest, dividends, capital gains, and distributions from retirement accounts like IRAs and 401(k)s. Rental income, income from a business you own, and gambling winnings are all subject to state tax.

Some types of income are not taxed. Social Security benefits are not subject to Georgia state tax. Military retirement pay is excluded from state taxable income. Certain pension income for retirees over 65 may be excluded, depending on the source — this includes some government pensions, teacher pensions, and private pensions. Workers' compensation and disability benefits are also not taxed by the state.

Interest from U.S. Treasury bonds and certain municipal bonds may be excluded from state tax. If you receive a settlement for a personal injury or physical sickness, that money is not taxable. Gifts and inheritances are not subject to state income tax, though inherited retirement accounts have their own rules.

Tax breaks and deductions available in Georgia

Georgia allows you to claim the standard deduction or itemize deductions, just as you do on your federal return. The amount you deduct on your state return is based on your federal deduction — you cannot claim a different amount in Georgia. This means if you take the standard deduction federally, you use that same amount for Georgia.

The state offers a dependent exemption of $3,000 per dependent, which reduces your taxable income. You can claim this exemption for each child or dependent you list on your federal return. Georgia also allows a personal exemption of $2,700 for yourself and $2,700 for your spouse if you file jointly.

If you are over 65, you may be able to exclude some or all of your retirement income from state tax. The rules depend on the source of the income — Social Security is always excluded, but pensions and IRA distributions have income limits. Military retirees can exclude all military retirement pay. Teachers and government employees may have different rules depending on when they retired.

How to file Georgia state taxes

You file Georgia state taxes using Form IT-1, the Georgia Individual Income Tax Return. You will need your federal return information, because Georgia taxes are based on your federal taxable income. If you file federal taxes, you almost certainly need to file Georgia taxes as well.

You can file online through the Georgia Department of Revenue website, by mail, or through a tax software program that supports Georgia returns. Many free tax software options include Georgia state forms if your income is below a certain threshold. If you use a tax preparer, they will file your Georgia return along with your federal return.

Georgia state taxes are due on the same date as federal taxes — April 15 in most years. If you owe money, you can pay online, by mail, or through an electronic funds withdrawal. If you expect a refund, filing electronically usually gets you your money faster than filing by mail.

What happens if you do not file or pay

If you owe Georgia state tax and do not file, the state can assess a penalty of 5 percent of the unpaid tax per month, up to 25 percent total. If you file late but pay on time, the penalty is smaller. If you file on time but pay late, you owe interest on the unpaid amount, calculated daily from the due date.

The Georgia Department of Revenue can place a lien on your property, garnish your wages, or intercept your state refund to collect unpaid taxes. If you owe a large amount, the state can revoke your driver's license or professional licenses. The longer the debt sits unpaid, the more interest and penalties accumulate.

If you cannot pay what you owe, you can contact the Georgia Department of Revenue to discuss a payment plan. The state may also offer an offer in compromise if your circumstances have changed significantly since the tax was assessed.

Frequently Asked Questions

Do I have to pay Georgia state tax if I work remotely for a company in another state?

Yes, if you live in Georgia, you owe Georgia state tax on all income you earn, regardless of where your employer is located. The state taxes residents on their worldwide income. If your employer is in another state and that state also taxes you, you may be able to claim a credit on your Georgia return.

Can I deduct federal taxes paid from my Georgia state income?

No. Georgia does not allow you to deduct federal income taxes from your state taxable income. You calculate your Georgia tax based on your federal taxable income, not on your income after federal taxes are paid.

What if I moved out of Georgia during the year?

You owe Georgia state tax only on income earned while you were a resident. If you moved out on June 30, you owe tax on income earned from January 1 through June 30. You file a part-year resident return and report only the income earned during the months you lived in Georgia.

Are military pensions completely exempt from Georgia state tax?

Yes. Military retirement pay is fully excluded from Georgia state taxable income, regardless of the amount or your age. This applies to active duty, reserve, and National Guard retirement pay. Survivor Benefit Plan payments are also excluded.

How much can I earn before I have to file a Georgia state return?

You must file if your income is above the threshold for your filing status. For a single person in 2024, that threshold is typically around $12,200, but it changes yearly. If you are claimed as a dependent on someone else's return, the threshold is lower. Check the Georgia Department of Revenue website for the current year's threshold.