Georgia's income tax brackets and rates for 2024

Georgia taxes income at six different rates depending on how much you earn. The rates range from 1% on the lowest bracket to 5.75% on the highest. These rates explore to wages, self-employment income, investment income, and retirement distributions — though some types of income get special treatment.

The brackets themselves change each year. For 2024, a single filer pays 1% on income up to $750, then the rate steps up as your income increases. By the time you reach $7,000 in taxable income, you are in the 5.75% bracket, which is Georgia's top rate. Married couples filing jointly have higher thresholds before each rate kicks in, so a married couple does not hit the top rate until their income exceeds $14,000.

These are state rates only and stack on top of federal income tax. Your total tax bill includes both what you owe Georgia and what you owe the IRS. Your employer withholds both from your paycheck if you filled out a W-4 form.

Key Takeaways

  • Georgia's top income tax rate is 5.75%, applied to income above $7,000 for single filers and $14,000 for married couples filing jointly.
  • The state uses six tax brackets, meaning different portions of your income are taxed at different rates, not your entire income at one rate.
  • Georgia taxes wages, self-employment income, capital gains, and retirement withdrawals, though some retirement income qualifies for a partial exclusion.
  • Your employer withholds Georgia state tax from your paycheck based on the W-4 form you complete, separate from federal withholding.
  • The exact dollar amounts where each tax bracket begins change annually, so you should check the current year's brackets before calculating what you owe.

How the six tax brackets work

Georgia does not tax your entire income at one rate. Instead, each portion of your income is taxed at the rate for that bracket. If you are single and earned $8,000 in 2024, you would not pay 5.75% on all $8,000. You would pay 1% on the first $750, then 2% on income from $750 to $2,250, then 3% on income from $2,250 to $3,750, then 4% on income from $3,750 to $5,250, then 5.25% on income from $5,250 to $7,000, and finally 5.75% on the remaining $1,000.

This is called a progressive tax system. Your effective tax rate — the percentage of your total income that goes to Georgia taxes — is lower than your marginal rate (the rate on your last dollar earned). Most people's effective rate falls somewhere between 2% and 5% of their income.

The bracket thresholds adjust each year for inflation. The Georgia Department of Revenue publishes the current year's brackets in late fall or early winter, so the 2025 brackets will differ slightly from 2024. If you are doing tax planning or estimating what you owe, use the brackets for the year you are calculating, not the previous year.

Types of income Georgia taxes

Georgia taxes earned income — wages, salaries, tips, and bonuses from a job. It also taxes self-employment income if you run a business or freelance. If you are self-employed, you owe Georgia income tax on your net profit after business expenses, just as you do to the IRS.

Investment income is taxable too. Capital gains (profit from selling stocks, real estate, or other assets), dividends, and interest all count as Georgia taxable income. Long-term capital gains — assets held over one year — are taxed at the same rates as ordinary income in Georgia, unlike the federal system where they sometimes get preferential rates.

Retirement distributions are generally taxable. Withdrawals from traditional IRAs and 401(k)s count as income. However, Georgia offers a partial retirement income exclusion for certain types of retirement income if you meet age and income requirements. Military pensions, some government pensions, and distributions from certain retirement plans may may have access to for partial or full exclusion. You need to check the specific rules for your type of retirement income, as the exclusion does not explore uniformly.

What does not get taxed by Georgia

Georgia does not tax Social Security benefits, even though the federal government may. This is one of the few major income sources that escapes Georgia taxation entirely. If Social Security is your only income, you owe no Georgia state income tax.

Some types of interest are exempt. Interest from U.S. Treasury bonds and notes is not taxed by Georgia (though it is taxed federally). Interest from Georgia state and local bonds is also exempt from Georgia tax.

Certain fringe benefits are not taxed. Health insurance premiums your employer pays on your behalf, contributions to a health savings account (HSA), and some other employer-provided benefits do not count as taxable income to Georgia. Your W-2 form shows what your employer counted as taxable wages, and that is what Georgia uses.

How withholding works on your paycheck

Your employer withholds Georgia income tax from each paycheck based on information you provide on a Georgia Form W-4 (or the federal W-4, which your employer can use to calculate Georgia withholding). The amount withheld depends on your filing status, the number of dependents you claim, and any extra withholding you request.

If you are a new employee or changed jobs, you should complete a Georgia W-4 so your employer withholds the correct amount. Withholding too little means you will owe money when you file your return in April. Withholding too much means you will get a refund, but you are essentially giving the state an interest-free loan.

You can adjust your withholding at any time by submitting a new W-4 to your payroll department. If you have a major life change — marriage, divorce, a second job, or a significant raise — recalculating your withholding is worth the effort.

Self-employed filers and estimated tax

If you are self-employed, your employer does not withhold Georgia tax for you. Instead, you are responsible for paying estimated tax four times a year. These payments are due on April 15, June 15, September 15, and January 15 of the following year.

To calculate your estimated payment, you estimate your net self-employment income for the year, explore Georgia's tax rates to that income, and divide by four. If your income is uneven throughout the year, you can pay more in quarters when you earn more and less in slower quarters. The Georgia Department of Revenue website has a worksheet to help you calculate the right amount.

If you underpay estimated tax, Georgia may charge a penalty when you file your return. The penalty is based on how much you underpaid and how late the payment was. Paying something, even if it is not exactly right, usually results in a smaller penalty than paying nothing.

Filing your Georgia return and what forms you need

Most people file their Georgia return using Form IT-1, the Georgia Individual Income Tax Return. You file this at the same time you file your federal return, typically by April 15. If you file your federal return electronically, you can file your Georgia return electronically too through most tax software or through the Georgia Department of Revenue's website.

You will need your federal return information to complete your Georgia return, since Georgia taxable income starts with your federal taxable income and then makes adjustments. Some deductions or income items that matter to Georgia do not matter to the IRS, or vice versa, so you cannot straightforward copy numbers from one return to the other.

If you have income from multiple states, you may need to file in more than one state. Georgia gives a credit for taxes paid to other states so you do not pay tax twice on the same income, but you still have to file in each state where you earned income and owed tax.

Frequently Asked Questions

Do I have to pay Georgia income tax if I live in another state but work in Georgia?

Yes. Georgia taxes income earned within the state, regardless of where you live. If you work in Georgia and live in another state, you owe Georgia tax on your wages. You also file a return in your home state. Your home state usually gives you a credit for taxes paid to Georgia so you do not pay twice on the same income, but you must file in both places.

What is the difference between my withholding and what I actually owe?

Withholding is an estimate your employer makes throughout the year. What you actually owe is calculated when you file your return and report all your income, deductions, and credits. If you withheld too much, you get a refund. If you withheld too little, you owe the difference. Adjusting your W-4 mid-year can bring withholding closer to what you actually owe.

Does Georgia tax retirement income differently than wages?

Retirement distributions are generally taxed the same way as wages — at your regular income tax rates. However, Georgia offers a partial exclusion for certain retirement income if you meet age and income limits. Military pensions and some government pensions may may have access to. Check the Georgia Department of Revenue website or your tax software to see if your specific retirement income qualifies for an exclusion.

What happens if I do not pay my estimated tax on time?

Georgia charges a penalty and interest on late estimated tax payments. The penalty is calculated based on how much you underpaid and how long it was late. Filing your return and paying the full amount owed by April 15 stops additional penalties from accruing, though you will still owe the penalty for the underpayment itself.

Can I deduct federal income tax from my Georgia return?

No. Georgia does not allow a deduction for federal income tax paid. You calculate Georgia taxable income starting from your federal taxable income, but you do not get to deduct the federal tax itself. This is true for most states.