Georgia Tax Calculator
Georgia Income Tax
Georgia switched from a graduated income tax to a flat 5.49% rate effective January 2024. This was part of House Bill 1437, signed in 2022, which converted Georgia from a six-bracket graduated system (1%-5.75%) to a flat tax. The rate is scheduled to decrease further in future years, potentially reaching 4.99% as revenue targets are met.
Georgia Sales Tax
Georgia's state sales tax is 4.00%, among the lowest state rates. However, local option sales taxes are substantial, pushing the average combined rate to approximately 7.38%. Most counties add 3-4% in local taxes. Groceries are exempt from state sales tax but may be subject to local sales taxes.
Georgia Property Tax
Georgia's effective property tax rate is approximately 0.83%, slightly below the national average. Property tax varies by county, with metro Atlanta counties typically having higher rates. Georgia offers homestead exemptions that vary by county.
Georgia Tax Reform: From Graduated to Flat
Georgia's transition to a flat tax was a significant change. Under the old system, rates ranged from 1% (on the first $750) to 5.75% (on income over $7,000). The new flat rate of 5.49% represents a slight reduction for most taxpayers, with the possibility of further reductions tied to revenue growth.
The standard deduction increased significantly as part of the reform: $12,000 for single filers and $24,000 for married filing jointly, bringing Georgia closer to the federal amounts.
Georgia Film Industry Tax Incentives
Georgia has become a major hub for film and television production, largely due to its generous tax credits. Productions that spend $500,000 or more in Georgia qualify for a 20% transferable tax credit, with an additional 10% for including a Georgia promotional logo. This has attracted major productions and earned Georgia the nickname "Hollywood of the South."
Georgia vs. Neighboring States
- Florida — No income tax, making it attractive for high earners. But Florida has higher sales tax (7.05% avg) and similar property tax (0.86%).
- South Carolina — Higher top income tax rate (6.4% graduated) but lower average property tax (0.55%). Lower sales tax (7.44% avg).
- Tennessee — No income tax, but very high combined sales tax (9.55% avg). Lower property tax (0.64%).
- North Carolina — Lower flat income tax (4.50%). Similar property and sales tax rates. NC's lower income tax rate may make it more attractive for higher earners.