Georgia State Income Tax: 2026 Rate, Deductions & Rules
Georgia cut its income tax for the third year in a row. House Bill 463, signed by Governor Kemp on May 11, 2026 and retroactive to January 1, dropped the flat rate to 4.99% — and it also boosted the standard deduction to $30,000 for joint filers and raised the dependent exemption to $5,000. If you’re using last year’s 5.19% figure, your estimate is already wrong.
This guide answers the questions Georgia taxpayers actually search for: the new 2026 rate, what changed and why, which deductions apply, and whether any local income tax exists. Check your own numbers with the free Georgia income tax calculator.
What is Georgia’s income tax rate in 2026?
Georgia taxes all taxable income at a flat 4.99% in 2026 — no brackets, no tiers. The rate fell from 5.19% in 2025 and 5.39% in 2024, making this the third consecutive annual cut. The flat rate applies after subtracting the standard deduction or itemized deductions and any dependent exemptions from your Georgia adjusted gross income.
What exactly changed for Georgia taxpayers in 2026?
House Bill 463 made three taxpayer-friendly changes effective for tax year 2026: the flat rate dropped from 5.19% to 4.99%, the standard deduction jumped to $15,000 for single filers and $30,000 for married filing jointly (up from $12,000/$24,000), and the dependent exemption rose from $4,000 to $5,000 per dependent. The law also sets up future 0.125-point annual rate cuts toward a 3.99% floor, contingent on state revenue targets being met.
One payroll wrinkle: employers kept withholding at the old 5.19% rate until May 11, 2026, when updated withholding tables took effect. If too much was withheld early in the year, the difference comes back as a larger refund.
What deductions can I claim on my Georgia return?
Georgia’s 2026 standard deduction is $15,000 for single, head of household, and married-filing-separately filers, and $30,000 for married filing jointly — among the most generous in the country. On top of that, you get a $5,000 exemption for each qualifying dependent. You can itemize instead if your itemized deductions exceed the standard amount, mirroring the federal choice.
The combination is powerful: a married couple with two children shields $40,000 of income before the 4.99% rate touches a dollar. Model your own situation with the Georgia income tax calculator.
Does Georgia have local income taxes?
No. Georgia has no city or county income taxes — the state return (Form 500) is the only income tax return most Georgians file. This is a genuine advantage over states like Ohio and Pennsylvania, where municipal taxes can add 1–3% on top of the state bill. Georgia cities and counties fund themselves through property and sales taxes instead.
How does Georgia’s tax compare to neighboring states?
Georgia’s 4.99% flat rate sits in the middle of the Southeast: Florida and Tennessee have no income tax at all, North Carolina charges a flat 3.99%, while South Carolina’s top graduated rate reaches 6%. Georgia’s edge is its outsized $30,000 joint standard deduction — for middle-income families, the effective rate often lands below 3%, competitive with lower-rate neighbors that offer smaller deductions.
Worked example: $75,000 salary (single, no dependents)
- Gross wages: $75,000
- Standard deduction (single): −$15,000
- Georgia taxable income: $60,000
- State tax (4.99% × $60,000): $2,994.00 (3.99% effective)
- Local income tax: $0 — Georgia has none
At the old 2025 rules (5.19% on $63,000 after a $12,000 deduction), the same earner would have owed $3,269.70 — the 2026 changes save about $276. Confirm the math on your own income with the Georgia income tax calculator.
Frequently Asked Questions
Why was my Georgia withholding still 5.19% earlier in 2026?
House Bill 463 wasn’t signed until May 11, 2026, so employers were legally required to keep withholding at the old 5.19% rate through early May. Updated tables took effect May 11. Any over-withholding from January through early May is reconciled on your 2026 return — expect it back as a refund, not as adjusted paychecks.
Does Georgia tax retirement income?
Georgia is moderately retiree-friendly: taxpayers 65 and older can exclude up to $65,000 of retirement income per person ($130,000 for a couple), and Social Security benefits are fully exempt. Proposed legislation would raise the exclusion to $70,000, but it had not been enacted as of mid-2026.
What about the overtime and tips exclusion?
HB 463 created a temporary state exclusion for certain overtime pay and cash tips for tax years 2026–2028, but it is smaller than the federal exclusion under the One Big Beautiful Bill Act, and Georgia decoupled from several other federal provisions. Employers must separately report qualified overtime and tips on 2026 W-2s and 1099s.
When is my 2026 Georgia return due?
April 15, 2027. Georgia individual returns (Form 500) follow the federal deadline. Estimated quarterly payments apply if you expect to owe $500 or more beyond withholding — relevant for freelancers and anyone with significant non-wage income.
Will Georgia’s rate keep falling?
That’s the plan: HB 463 schedules annual 0.125-point cuts down to a 3.99% floor, but each step requires the state to hit revenue targets, so cuts can be delayed. The standard deduction is also scheduled to keep rising — toward $18,000 single / $36,000 joint — on the same conditional basis.
How do I estimate my Georgia tax for 2026?
Use the free Georgia income tax calculator with the current 4.99% rate and 2026 deduction figures built in. Comparing flat-tax states? The Ohio income tax calculator shows how Georgia’s bigger deductions stack up against Ohio’s lower rate plus city taxes.
Estimates only — not tax advice. Verify with the Georgia Department of Revenue or a tax professional.
