State & Local Taxes

Georgia State Income Tax: 2026 Flat Rate and Rules

By The Ledgerism Editorial Team · The Ledgerism Brief Editorial Team produces original, methodology-disclosed accounting and tax research—data trackers, databases, and reference guides built to be the most-cited source in the field. Every figure is verified against primary sources including FASB, the IRS, the PCAOB, NASBA, the AICPA, and state boards of accountancy.

Georgia state income tax is a flat 4.99% for the 2026 tax year, applied to every dollar of Georgia taxable income regardless of filing status or income level. House Bill 463, signed in May 2026, cut the rate from the prior 5.19% and set up further annual reductions that could reach a 3.99% floor if the state hits its revenue targets. The flat structure replaced Georgia’s old six-bracket system in 2024.

This guide covers the 2026 rate, the standard deduction, the retirement income exclusion, how residency changes what you owe, and the 2026 surplus refund.

What is the Georgia state income tax rate in 2026?

Georgia taxes individual income at a flat 4.99% for tax year 2026. The rate applies uniformly, so a single filer and a married couple pay the same percentage on their Georgia taxable income. Georgia moved to a flat tax in 2024 and has cut the rate every year since, ahead of the original schedule.

Before 2024, Georgia used graduated brackets topping out at 5.75%. House Bill 1437 (2022) converted the state to a single flat rate starting in 2024 and set annual step-downs toward a floor. Lawmakers have since accelerated those cuts through follow-on bills.

The scheduled reductions after 2026 are conditional. HB 463 ties each 0.125-percentage-point cut to the state meeting revenue collection benchmarks, so a future rate is not guaranteed and can pause in a year when receipts fall short.

Georgia standard deduction for 2026

Georgia’s 2026 standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly, up from $12,000 and $24,000 respectively. HB 463 raised these amounts for tax years beginning on or after January 1, 2026, and set them to keep rising in later years. The dependent exemption increased to $5,000 per dependent from $4,000.

Georgia’s standard deduction is separate from the federal one. You can claim the federal standard deduction on your 1040 and still itemize or take the standard amount on your Georgia Form 500, depending on which produces the lower state bill. In many cases the higher 2026 standard deduction, combined with the lower rate, reduces Georgia liability year over year.

HB 463 also created temporary state exclusions for certain overtime pay and tip income, scheduled to run through 2028. Whether a given worker qualifies depends on the wage type and how the employer reports it, so treatment can vary.

Georgia retirement income exclusion

Georgia lets older residents exclude a large share of retirement income from state tax. For 2026, taxpayers ages 62 to 64 (or those permanently and totally disabled) may exclude up to $35,000 of qualifying income per person, and taxpayers age 65 and older may exclude up to $65,000 per person. Married couples can each claim their own exclusion.

Qualifying income can include pensions, annuities, IRA and 401(k) distributions, interest, dividends, capital gains, and rental income. Of the total exclusion, only a limited amount (generally up to $4,000) may come from earned income such as wages. The exact split depends on your income mix.

The 65-and-older exclusion is scheduled to rise to $70,000 per person starting in tax year 2027 under recent legislation. Military retirement income receives additional Georgia relief, and the amount excluded can differ from the general rule, so retirees with pension and service income often benefit from running both calculations.

Residency: who owes Georgia income tax

Georgia taxes residents on all income and nonresidents on income sourced to Georgia. Your status (full-year resident, part-year resident, or nonresident) determines what portion of your income the flat 4.99% rate reaches. Most filers report on Form 500; a simplified Form 500EZ is available for many full-year residents with straightforward returns.

A full-year resident generally pays Georgia tax on worldwide income, with a credit often available for taxes paid to another state. A part-year resident is taxed on all income earned while a Georgia resident plus Georgia-source income earned while a nonresident. A nonresident is taxed only on Georgia-source income, such as wages for work performed in the state or income from Georgia property.

If you moved during 2026, the split between resident and nonresident periods can change your bill significantly, and the outcome depends on when you established or ended domicile.

Georgia surplus tax refund in 2026

Georgia issued another one-time surplus refund in 2026, funded by state budget surpluses. The refund ranges from $250 to $500 depending on filing status: up to $250 for single and married-filing-separately filers, up to $375 for head of household, and up to $500 for married couples filing jointly. The amount is capped at your 2024 Georgia tax liability.

To be eligible, you generally must have filed both your 2024 and 2025 Georgia returns by the applicable deadline (April 15, 2025, or October 15, 2025 with an extension) and have had a 2024 tax liability. Full-year, part-year, and certain nonresident filers can qualify, though part-year and nonresident amounts are typically prorated. The surplus refund is separate from any regular refund and depends on the legislature authorizing it each year, so it is not a permanent feature of the tax code.

FAQ

Is Georgia a flat tax state?

Yes. Since 2024, Georgia has taxed individual income at a single flat rate rather than graduated brackets. For 2026 that rate is 4.99% on Georgia taxable income, the same percentage for every filer. The old system used brackets from 1% to 5.75%. Future rates are scheduled to fall further if the state meets revenue targets.

What is Georgia’s income tax rate for 2026?

Georgia’s individual income tax rate for 2026 is a flat 4.99%, set by House Bill 463 and effective for tax years beginning on or after January 1, 2026. It replaced the 5.19% rate that applied in 2025. The law provides for additional 0.125-point annual cuts toward a 3.99% floor, but only if revenue collection benchmarks are met.

Does Georgia tax retirement income and Social Security?

Georgia does not tax Social Security benefits. It also offers a retirement income exclusion of up to $35,000 per person for ages 62 to 64 and up to $65,000 per person for age 65 and older in 2026, covering pensions, IRA and 401(k) withdrawals, and investment income. Amounts above the exclusion are taxed at the flat rate. The 65-plus exclusion rises to $70,000 in 2027.

Who has to file a Georgia income tax return?

Georgia residents who are required to file a federal return, or who have Georgia income above the filing thresholds, generally must file Form 500. Nonresidents with Georgia-source income and part-year residents also file, reporting only the income Georgia can tax. Whether you must file depends on your income, residency status, and filing status, so thresholds vary by taxpayer.

How does the Georgia standard deduction compare to itemizing?

For 2026 the Georgia standard deduction is $15,000 single and $30,000 married filing jointly. You take the standard deduction unless your Georgia itemized deductions are larger. Because Georgia generally requires you to match the federal method, taxpayers who itemize federally often itemize in Georgia too. Running both calculations usually shows which produces the lower state tax.

Will Georgia eliminate its income tax?

Georgia has not eliminated its income tax. HB 463 keeps the tax in place at 4.99% for 2026 while scheduling conditional cuts toward a 3.99% floor in future years. Full elimination has been proposed by some officials but is not enacted law. Any further reduction below 4.99% depends on the state meeting revenue triggers each year, so timing is not guaranteed.

For how state rules interact with your federal return, see the difference between state and federal income tax. If you are weighing a move, compare states with no income tax in 2026 and neighboring high-tax systems like California and New York. Retirees reporting pension withdrawals should also review Form 1099-R.

Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.