Does Georgia Have State Taxes? Income, Sales, and Property

Yes, Georgia has state taxes. Residents pay a 5.19% flat state income tax for the 2025 tax year, a 4% state sales tax (plus local add-ons at the register), county property taxes based on 40% of a property’s fair market value, and a one-time Title Ad Valorem Tax when a vehicle is titled in the state. Georgia does not tax Social Security benefits and imposes no state estate or inheritance tax.

Georgia Income Tax

Georgia scrapped its old bracket system for a single flat rate that applies to all taxable income. Under O.C.G.A. § 48-7-20, the flat rate took effect at 5.39% for 2024, with built-in annual reductions of 0.10% aimed at a 4.99% floor.¹ The legislature has moved faster than the original schedule. The rate dropped to 5.19% for 2025, and the 2026 session approved a further acceleration toward the 4.99% floor.

Every Georgia resident owes this percentage on taxable net income. Nonresidents owe it on income earned from Georgia sources, including wages, business profits, rental income, and lottery winnings from the Georgia Lottery Corporation.¹

Standard Deduction and Dependent Exemptions

The standard deduction has been $12,000 for single filers and $24,000 for married couples filing jointly. The 2026 legislature approved increases to $15,000 and $30,000 respectively, with phased annual increases after that. Each dependent exemption has been $4,000, and the 2026 legislature voted to raise it to $5,000 with scheduled annual bumps.

These reduce taxable income before the flat rate applies, so they affect the bill dollar-for-dollar at 5.19%. The amounts are worth checking each year because lawmakers have been adjusting them alongside the rate cuts.

Who Has to File and When

Georgia ties its filing requirement to the federal standard: if you have to file a federal return, you have to file a Georgia return on Form 500.² Nonresidents who earn any income from Georgia sources file Form 500 too, regardless of where they live.

Returns are due April 15, matching the federal deadline.³

Sales and Use Tax

Georgia imposes a 4% state sales tax on most retail purchases of goods and taxable services.⁴ Counties and municipalities add their own levies through Local Option Sales Taxes and Special Purpose Local Option Sales Taxes, pushing the combined rate at the register to roughly 7% to 9% depending on where you shop.

Buy something from an out-of-state retailer that doesn’t collect Georgia sales tax and you owe use tax at the same 4% state rate on the purchase price.⁴ This covers online purchases, catalog orders, and items bought while traveling. Most major online retailers now collect the tax automatically, but smaller vendors may not, which leaves the reporting responsibility with you.

Property Tax

Property tax in Georgia is an ad valorem tax on both real property (land and structures) and personal property (vehicles, equipment, and other tangible assets), unless specifically exempted.⁵ County boards of tax assessors handle valuations, and county tax commissioners collect payment.

All taxable property is assessed at 40% of its fair market value.⁶ The county then applies its millage rate to that assessed value. One mill equals one dollar of tax per $1,000 of assessed value. A home with a fair market value of $300,000 has an assessed value of $120,000; a millage rate of 30 mills produces a tax bill of $3,600. Millage rates vary widely by county and by the taxing districts (schools, fire, parks) that overlap your property.

Homestead Exemption

Homeowners who use a property as a primary residence qualify for a standard homestead exemption that reduces the assessed value by $2,000 for county and school tax purposes.⁷ That’s a reduction off the 40% assessed value, not the full market value, so the dollar savings are modest. Many counties offer additional local homestead exemptions on top of the state minimum, and some provide enhanced exemptions for seniors, disabled residents, or veterans.

You have to file for the homestead exemption with your county tax assessor’s office. It does not apply automatically.⁸ Property tax returns are generally due between January 1 and April 1.⁵

Vehicle Title Ad Valorem Tax

Instead of an annual vehicle property tax on most cars, Georgia charges a one-time Title Ad Valorem Tax when a vehicle is titled in the state. The standard TAVT rate is 7% of the vehicle’s fair market value.⁹ On a car valued at $30,000, that’s $2,100 due at titling.

Reduced rates apply in a few common situations:¹⁰

New Georgia residents pay 3% of fair market value when titling a vehicle brought from another state.
Family transfers of a vehicle already in the TAVT system are taxed at 0.5% of fair market value, with Form MV-16 required to certify the relationship.
Inherited vehicles in the TAVT system are also taxed at 0.5%, with a T-20 Affidavit of Inheritance required.

Retirement Income and Social Security

Georgia does not tax Social Security benefits. Those payments won’t show up in your state taxable income regardless of the amount.

For other retirement income, including pensions, annuities, interest, dividends, rental income, and capital gains, Georgia offers a retirement income exclusion that varies by age:¹¹

Ages 62 to 64: up to $35,000 per person excluded each year.
Age 65 and older: up to $65,000 per person excluded each year.

These are per-taxpayer amounts, so a married couple filing jointly where both spouses are 65 or older can exclude up to $130,000 of qualifying retirement income combined. Individuals who are permanently and totally disabled qualify at the $35,000 level regardless of age. Categorizing your income sources correctly matters because only qualifying retirement income counts toward the exclusion.

Military Retirement Pay

Veterans under age 62 can exclude up to $17,500 of military retirement pay, plus an additional $17,500 if they have at least $17,500 in earned income from other work.¹² Veterans aged 62 to 64 fall under the standard $35,000 exclusion, and those 65 and older qualify for the $65,000 exclusion.

Taxes Georgia Doesn’t Charge

Georgia has no state estate tax and no inheritance tax. The state repealed its estate tax provisions under O.C.G.A. § 48-12-1, so heirs owe nothing to Georgia on inherited assets.¹³ Estates large enough to exceed the federal estate tax exemption (currently $13.99 million per individual) still face federal estate tax, but Georgia adds no layer on top.

Penalties for Filing or Paying Late

Georgia assesses separate penalties for filing late and paying late, and you can get hit with both at the same time.

The failure-to-file penalty is 5% of the tax owed for each month (or partial month) the return is overdue, up to a maximum of 25% of total tax liability.¹⁴ A return five months late has already maxed out this penalty.

The failure-to-pay penalty adds 0.5% of the unpaid tax for each month the balance remains outstanding, also capped at 25%.¹⁵ Interest accrues on top of both. If you can’t pay in full by April 15, filing on time and paying what you can still saves you the much steeper failure-to-file penalty. Both penalties can be waived for reasonable cause, but the Department of Revenue sets a high bar for that showing.¹⁶

1
Justia. Georgia Code 48-7-20 – Individual Tax Rates; Credit for Withholding and Other Payments; Applicability to Estates and Trusts
2
Georgia Secretary of State. Georgia Rules and Regulations 560-7-8 – Returns and Collections
3
Georgia Department of Revenue. Tax Due Dates
4
Justia. Georgia Code 48-8-30 – Imposition of Tax; Rates; Collection
5
Georgia Department of Revenue. Property Tax Valuation
6
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-5-7
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FindLaw. Georgia Code Title 48 Revenue and Taxation 48-5-44
8
Georgia Department of Revenue. Property Tax Homestead Exemptions
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Justia. Georgia Code 48-5C-1 – Definitions; Exemption from Taxation
10
Georgia Department of Revenue. Vehicle Taxes – Title Ad Valorem Tax (TAVT) and Annual Ad Valorem Tax
11
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-7-27
12
Georgia Department of Veterans Service. Military Retirement Income Tax Exemption
13
Justia. Georgia Code Title 48, Chapter 12 – Estate Tax
14
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-7-57
15
Justia. Georgia Code 48-7-86 – Penalties for Nonpayment, Failure
16
Georgia Department of Revenue. Penalty and Interest Rates