# Georgia income tax rate: the 4.99% flat tax for 2026 and the cuts still to come

Source: https://taxbracketsdesk.com/state-taxes/georgia-income-tax-rate
Publisher: Tax Brackets Desk (taxbracketsdesk.com), independent editorial site
Topic: State Income Tax
Last updated: 2026-09-19

> The Georgia income tax rate is a flat 4.99% for tax year 2026, down from 5.19% for 2025, under House Bill 463 signed on May 11, 2026. The same law raised the standard deduction to $15,000 single and $30,000 married filing jointly, and schedules further cuts of 0.125 point a year from 2027 toward 3.99%, if revenue conditions are met.

## Key facts

- Georgia rate, tax year 2026: 4.99% flat
- Georgia rate, tax year 2025: 5.19% flat
- Standard deduction, 2026: $15,000 single, head of household, married separate; $30,000 joint
- Dependent exemption, 2026: $5,000 per dependent
- Scheduled path: Minus 0.125 point a year from 2027 until 3.99%, subject to revenue triggers
- Local income tax: None

## What is the Georgia income tax rate for 2026?

The Georgia income tax rate for tax year 2026 is 4.99% of Georgia taxable income, with no brackets. Every dollar after deductions and exemptions is taxed at that one rate, whether you earn $30,000 or $3 million. You will use this rate on the Form 500 you file in 2027.

The rate comes from House Bill 463, the Georgia Economic Growth and Tax Relief Act of 2026, which Governor Brian Kemp signed on May 11, 2026. It replaced the 5.19% rate that applied to 2025 and applies to taxable years beginning on or after January 1, 2026, so it covers the whole 2026 year, not only income earned after May.

A flat tax is an income tax that charges a single percentage on all taxable income. Georgia moved to this design in 2024 after decades of graduated brackets, and the Georgia flat tax now works much like the [Illinois income tax rate](https://taxbracketsdesk.com/state-taxes/illinois-income-tax-rate) or the [North Carolina income tax rate](https://taxbracketsdesk.com/state-taxes/north-carolina-income-tax-rate): the deductions, not the rate, decide how much of your income is shielded.

## How are Georgia brackets structured now?

Georgia has no brackets left to climb. Your tax is Georgia taxable income multiplied by 4.99%, and the only way to lower it is to shrink taxable income or claim credits. Georgia taxable income starts from federal adjusted gross income (AGI) and subtracts either the Georgia standard deduction or your federal itemized deductions, then the dependent exemption.

| Item | Tax year 2025 | Tax year 2026 |
| --- | --- | --- |
| Rate | 5.19% flat | 4.99% flat |
| Standard deduction: single, head of household, married filing separately | $12,000 | $15,000 |
| Standard deduction: married filing jointly | $24,000 | $30,000 |
| Exemption per dependent | $4,000 | $5,000 |
| Overtime and cash tips exclusion | None | Up to $1,750 each |

Georgia income tax at a glance, tax years 2025 and 2026

Because the rate is flat, the effective rate on your total income is always below 4.99%. Our page on [effective tax rate](https://taxbracketsdesk.com/federal-tax-brackets/effective-tax-rate-explained) shows how to work that out, and the same method applies to your Georgia return.

## Georgia standard deduction and exemptions for 2026

For 2026, House Bill 463 raised the Georgia standard deduction from $12,000 to $15,000 for single filers, heads of household and married people filing separately, and from $24,000 to $30,000 for married couples filing jointly. The exemption for each dependent rose from $4,000 to $5,000. You and your spouse do not get a separate personal exemption; that relief is built into the standard deduction.

### New 2026 exclusions for overtime and tips

Starting with 2026, hourly full-time employees can exclude up to $1,750 of qualified overtime pay, using the federal definition in Internal Revenue Code section 225. The overtime exclusion runs through December 31, 2028. A separate exclusion covers up to $1,750 of cash tips. These are much smaller than the federal [no tax on overtime deduction](https://taxbracketsdesk.com/new-tax-law/no-tax-on-overtime-deduction), so check both returns separately.

### Retirement income

Georgians who are 62 or older, or permanently and totally disabled, can exclude retirement income: up to $35,000 per person aged 62 to 64 or disabled, and up to $65,000 per person aged 65 or older, through tax year 2026. From 2027 the 65-and-older amount becomes $70,000.

> **One-time credit:** The Georgia Department of Revenue also lists a one-time tax credit of up to $500 for eligible residents who paid Georgia tax for both 2024 and 2025. It is separate from the rate cut, so check the department's Important Tax Updates page for who qualifies.

## Does Georgia have local income taxes?

No. Georgia cities and counties do not levy a local income tax on wages, so the 4.99% state rate is the only income tax a Georgia resident pays on top of federal tax. Atlanta and other cities fund themselves through property taxes and local sales taxes instead. The [state income tax rates](https://taxbracketsdesk.com/state-taxes) hub shows how Georgia compares with other large states.

That makes Georgia simpler than neighbors to the north. In Ohio, Michigan and Pennsylvania, many workers owe a city or school district income tax in addition to the state rate; see our [Pennsylvania income tax](https://taxbracketsdesk.com/state-taxes/pennsylvania-income-tax-rate) page for one example.

## Did Georgia change rates for 2026, and what comes next?

Yes. The rate fell from 5.19% in 2025 to 4.99% in 2026, reaching a rate below 5% three years ahead of the earlier schedule, according to the Governor's office. House Bill 463 then sets a new target: the rate drops by 0.125 percentage point each January 1 starting in 2027 until it reaches 3.99%.

Each cut is conditional. It is delayed a year if, as of December 1, the Governor's revenue estimate for the next fiscal year is not at least 3% above the current one, if the prior year's net revenue did not beat each of the three years before it, or if the Revenue Shortfall Reserve cannot cover the cost. The Office of Planning and Budget reports its finding by December 1 each year.

| Tax year | Rate | Standard deduction (single / joint) | Dependent exemption |
| --- | --- | --- | --- |
| 2025 | 5.19% | $12,000 / $24,000 | $4,000 |
| 2026 | 4.99% | $15,000 / $30,000 | $5,000 |
| 2027 (not yet confirmed) | 4.865% | $15,375 / $30,750 | $5,125 |
| Final targets | 3.99% | $18,000 / $36,000 | $6,000 |

Georgia scheduled changes if every revenue test is met (2027 and later not yet confirmed)

As of September 2026 the 2027 rate is not yet announced. Watch for the Office of Planning and Budget determination in early December 2026. If any test fails, 2027 stays at 4.99% with the 2026 deduction amounts.

## Worked example: Georgia income tax for a Georgia resident

These examples use the 2026 rules above and assume the standard deduction, no other Georgia adjustments and no credits.

1. **Single filer, $60,000 federal AGI.** Subtract the $15,000 standard deduction to get $45,000 of Georgia taxable income. Multiply by 4.99%: $2,245.50. Under 2025 rules ($12,000 deduction, 5.19%) the same income produced $2,491.20, so the saving is $245.70.
2. **Married couple filing jointly, two children, $100,000 federal AGI.** Subtract $30,000 and two $5,000 dependent exemptions to reach $60,000. Tax at 4.99% is $2,994. Under 2025 rules ($24,000 plus $8,000 of exemptions at 5.19%) it was $3,529.20, a saving of $535.20.
3. **Retired couple, both 66, $110,000 of pension and IRA income split $55,000 each.** Each spouse excludes up to $65,000 of his or her own retirement income, which covers the full $110,000, so Georgia taxable income and Georgia tax are both zero.

Social Security benefits are not taxed by Georgia at all, even when part of them is taxable federally. Our guide to [tax on Social Security benefits](https://taxbracketsdesk.com/taxable-income/tax-on-social-security-benefits) covers the federal side.

## What to do about the Georgia rate cut

1. Check your paycheck. Employers use Form G-4 and the Department of Revenue's withholding tables; if your 2026 Georgia withholding still looks like 2025, ask payroll whether the updated tables are loaded.
2. Lower your estimated payments. Self-employed Georgians who set quarterly payments from 2025 tax can recompute at 4.99% with the larger deduction.
3. Keep overtime and tip records. Your W-2 and pay stubs should separate qualified overtime; keep a log of cash tips if you plan to claim the $1,750 exclusion.
4. File Form 500 in 2027 and let the software apply the 2026 amounts; if you file on paper, use the 2026 instructions, not last year's.

## Common questions

### Is Georgia a flat tax state?

Yes. Since 2024 Georgia has taxed all taxable income at one rate. The Georgia flat tax is 4.99% for 2026 and 5.19% for 2025.

### What will the Georgia income tax rate be in 2027?

It is not yet announced. House Bill 463 lowers the rate to 4.865% for 2027 only if three revenue tests are met, and the Office of Planning and Budget reports that finding by December 1, 2026. If the tests fail, 2027 stays at 4.99%.

### Does Georgia tax Social Security?

No. Georgia excludes Social Security benefits from income. Other retirement income qualifies for an exclusion of up to $35,000 or $65,000 per person for 2026, depending on age.

### How much Georgia income tax will I pay on $50,000?

For a single filer with $50,000 of federal AGI and the standard deduction, Georgia taxable income is $35,000 and the 2026 tax is $1,746.50 at 4.99%, before any credits.

### Can I deduct Georgia income tax on my federal return?

Only if you itemize on Schedule A, and only within the state and local tax cap of $40,400 for 2026. See our page on the SALT deduction cap for the phase-down above $505,000 of income.

## Sources

- [Georgia General Assembly, HB 463 as passed (2026)](https://www.legis.ga.gov/api/legislation/document/20252026/249080)
- [Georgia Department of Revenue, Important Tax Updates](https://dor.georgia.gov/taxes/important-tax-updates)
- [Office of the Governor, Gov. Kemp signs legislation lowering taxes (May 11, 2026)](https://gov.georgia.gov/press-releases/2026-05-11/gov-kemp-signs-legislation-lowering-taxes-and-supporting-economic-growth)
- [Georgia Department of Revenue, Standard deduction increases](https://dor.georgia.gov/georgia-standard-deductions-increases)
- [Georgia Department of Revenue, Retirement income exclusion](https://dor.georgia.gov/retirement-income-exclusion)