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

Georgia state taxes include a flat individual income tax, a 4% state sales tax that stacks with local surcharges, county property taxes based on 40% of fair market value, and a one-time title tax on motor vehicles. The state does not charge an estate tax or inheritance tax, and it does not tax Social Security benefits. The income tax rate was 5.19% for the 2025 tax year, with further reductions enacted by the legislature heading toward a 4.99% floor.

Georgia Income Tax Rate

Georgia uses a single flat rate that applies to all taxable income under O.C.G.A. § 48-7-20. The rate started at 5.39% for 2024 with annual reductions of 0.10% built into the statute.¹ The 2024 and 2026 legislative sessions accelerated the schedule, and the rate reached 5.19% for 2025 with additional cuts approved for 2026.²

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

Standard Deduction and Dependent Exemptions

Georgia’s 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 further phased increases scheduled for future years. The deduction reduces your taxable income before the flat rate applies.

Each dependent exemption has been $4,000, and the 2026 legislature voted to raise that to $5,000 with annual increases to follow. A married couple with two children stacks the joint standard deduction with four personal exemption amounts to shrink the taxable base. Because the legislature has been adjusting these figures alongside rate cuts, the numbers are worth confirming for the year you are filing.

Who Must File and When

Georgia ties its filing requirement to the federal rule: any resident required to file a federal return must also file a Georgia return on Form 500.³ Nonresidents who earned income from Georgia sources must file Form 500 regardless of where they live.

Returns are due April 15, matching the federal deadline.⁴ If you can’t pay in full, file on time anyway. The failure-to-file penalty is ten times the monthly rate of the failure-to-pay penalty, so getting the return in protects you from the costlier of the two.

Sales and Use Tax

The state sales tax rate is 4% on most retail purchases of goods and taxable services.⁵ Counties and municipalities layer on Local Option Sales Taxes and Special Purpose Local Option Sales Taxes, which brings the combined rate at the register to roughly 7% to 9% depending on where you are shopping.

Out-of-state purchases that didn’t include Georgia sales tax trigger a use tax at the same 4% state rate.⁵ Major online retailers typically collect it at checkout. Smaller vendors often don’t, which leaves the reporting responsibility with the buyer.

Businesses selling taxable goods or services must register as dealers, collect sales tax, and remit it monthly, quarterly, or annually depending on volume. Georgia can hold company officers personally liable for sales tax that was collected from customers but not paid over to the state.

Property Tax

Property tax in Georgia is an ad valorem tax on both real property and tangible personal property, administered county by county.⁶ County boards of tax assessors set values, and county tax commissioners collect the bills.

All taxable property is assessed at 40% of its fair market value.⁷ The county then multiplies that assessed value by its millage rate, where one mill equals one dollar of tax per $1,000 of assessed value. A $300,000 home has an assessed value of $120,000, and a 30-mill rate would produce a $3,600 bill. Rates vary widely by county and by the overlapping school, fire, and parks districts.

Property tax returns are generally due between January 1 and April 1.⁶

Homestead Exemption

If you occupy the property as your primary residence, you qualify for a standard homestead exemption that reduces the assessed value by $2,000 for county and school tax purposes.⁸ Many counties offer additional local exemptions, and some provide enhanced exemptions for seniors, disabled residents, or veterans. The exemption does not apply automatically. You must file for it with your county tax assessor’s office.⁹

Vehicle Title Ad Valorem Tax

Georgia charges a one-time Title Ad Valorem Tax (TAVT) when a vehicle is titled in the state instead of an annual vehicle property tax for most cars. The standard rate is 7% of the vehicle’s fair market value.¹⁰ A car valued at $30,000 generates a $2,100 TAVT bill at titling.

Reduced rates apply in several common situations:¹¹

New Georgia residents titling a vehicle brought from another state pay 3% of fair market value.
Transfers between immediate family members of a vehicle already in the TAVT system are taxed at 0.5%, with Form MV-16 certifying the relationship.
Inherited vehicles in the TAVT system are taxed at 0.5%, with a T-20 Affidavit of Inheritance required.

Vehicles already on the road before TAVT took effect in March 2013 may still fall under the older annual ad valorem system.

Retirement Income and Social Security

Georgia does not tax Social Security benefits, regardless of the amount received. For other retirement income, including pensions, annuities, interest, dividends, rental income, and capital gains, the state offers an age-based exclusion:¹²

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

The exclusion applies per taxpayer, so a married couple filing jointly where both spouses are 65 or older can shelter up to $130,000 of qualifying retirement income combined. The $35,000 exclusion also extends to individuals who are permanently and totally disabled at any age.

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.¹³ Veterans aged 62 to 64 fall under the standard $35,000 retirement income exclusion, and those 65 and older qualify for the $65,000 exclusion.

No Estate or Inheritance Tax

Georgia does not impose a state estate tax or inheritance tax. The state’s estate tax provisions under O.C.G.A. § 48-12-1 were repealed, so heirs owe nothing to Georgia on inherited assets.¹⁴ Estates above the federal exemption of $13.99 million per individual still face federal estate tax, but no additional state layer applies.

Penalties for Filing or Paying Late

Georgia assesses separate penalties for filing late and paying late, and both can hit the same return.

The failure-to-file penalty is 5% of the tax owed for each month or partial month the return is overdue, capped at 25% of the total tax liability.¹⁵ A return five months late has already maxed out that penalty.

The failure-to-pay penalty adds 0.5% of unpaid tax per month, also capped at 25%.¹⁶ Interest accrues on top of both. The Department of Revenue can waive either penalty for reasonable cause, but documentation is required and the bar is high.¹⁷ If April 15 is approaching and the money isn’t there, file the return and pay what you can. The smaller penalty is the one you want to be stuck with.

1
Justia. Georgia Code 48-7-20 – Individual Tax Rates; Credit for Withholding and Other Payments; Applicability to Estates and Trusts
2
State of Georgia. House Bill 1015 (As Passed)
3
Georgia Secretary of State. Georgia Rules and Regulations 560-7-8 – Returns and Collections
4
Georgia Department of Revenue. Tax Due Dates
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Justia. Georgia Code 48-8-30 – Imposition of Tax; Rates; Collection
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Georgia Department of Revenue. Property Tax Valuation
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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
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Georgia Department of Revenue. Property Tax Homestead Exemptions
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Justia. Georgia Code 48-5C-1 – Definitions; Exemption from Taxation
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Georgia Department of Revenue. Vehicle Taxes – Title Ad Valorem Tax (TAVT) and Annual Ad Valorem Tax
12
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-7-27
13
Georgia Department of Veterans Service. Military Retirement Income Tax Exemption
14
Justia. Georgia Code Title 48, Chapter 12 – Estate Tax
15
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-7-57
16
Justia. Georgia Code 48-7-86 – Penalties for Nonpayment, Failure
17
Georgia Department of Revenue. Penalty and Interest Rates