For the 2026 tax year, Georgia employers withhold state income tax at a flat 4.99% of wages after subtracting the employee’s prorated standard deduction and allowances, using the tables and formulas in the Georgia Department of Revenue’s Employer’s Tax Guide.1Georgia Department of Revenue. Employer’s Tax Guide Every employee’s numbers come from the Form G-4 they turn in on hire, and both the calculation and the deposit schedule run through the Georgia Tax Center.
The 2026 Rate and Standard Deductions
Georgia charges a single flat rate of 4.99% on taxable wages in 2026, no brackets involved. The standard deduction amounts that reduce taxable wages before that rate applies are:2Georgia Department of Revenue. Important Tax Updates
- Single or Head of Household: $15,000
- Married Filing Jointly: $30,000
- Married Filing Separately: $15,000
These are annual figures. For withholding, you prorate them across the employee’s pay periods before running the rate.
Form G-4 Sets Each Employee’s Numbers
Every employee fills out a Georgia Employee’s Withholding Allowance Certificate (Form G-4) at hire.3Justia. Georgia Code 48-7-102 – Withholding Exemption Status The current form is on the Department of Revenue’s site.4Georgia Department of Revenue. Form G-4 – State of Georgia Employee’s Withholding Allowance Certificate When an employee’s situation changes, they have ten days to submit an updated form.
Four pieces of information drive the calculation:
- Filing status: Single, Married Filing Joint (both spouses working), Married Filing Joint (one spouse working), Married Filing Separate, or Head of Household.4Georgia Department of Revenue. Form G-4 – State of Georgia Employee’s Withholding Allowance Certificate
- Number of allowances claimed on the G-4 worksheet.
- Any additional flat-dollar amount the employee wants withheld each pay period.
- Exempt status, if the employee qualifies.
If an employee never turns in a G-4, withhold as though they are single with zero allowances. That produces the largest deduction and is the required default.3Justia. Georgia Code 48-7-102 – Withholding Exemption Status If a G-4 comes in claiming exempt, forward a copy to the Department of Revenue; the exemption stays in place until the employee changes it or until February 15 of the following year, whichever is first.
Two Ways to Calculate Withholding
The Employer’s Tax Guide gives you a percentage method and a wage bracket method.1Georgia Department of Revenue. Employer’s Tax Guide Either one produces the same result when done right.
Percentage Method
Automated payroll systems generally use this one because it handles any wage amount. For 2026:
- Start with gross wages for the pay period.li>
- Subtract the standard deduction, prorated to the pay frequency. A single employee paid biweekly gets $15,000 รท 26, or roughly $576.92 per paycheck.
- Subtract the value of each allowance the employee claimed, also prorated to the pay frequency.
- Multiply the remaining taxable wages by 4.99%.2Georgia Department of Revenue. Important Tax Updates
Because the state uses a flat rate now, there’s no bracket lookup and no base amount to add. One multiplication finishes the calculation.
Wage Bracket Method
For manual payroll, the Employer’s Tax Guide includes wage bracket tables organized by pay frequency: weekly, biweekly, semimonthly, and monthly. Pick the table that matches the employee’s pay period and filing status, find the row for their wage range, and read across to the column matching their number of allowances. The value where they intersect is the withholding in dollars and cents.
Document the result on the pay stub either way. That gives employees a running record they can check against their year-end totals.
How Often You File and Pay
Georgia sorts employers into three tiers based on withholding volume during the lookback period:
- Quarterly filers: employers withholding $200 or less per month file Form G-7 and pay by the last day of the month following the quarter’s end.5Cornell Law Institute. Georgia Compiled Rules and Regulations R 560-7-8-.33 – Payment and Reporting of Withholding Tax
- Monthly filers: employers with $50,000 or less in aggregate withholding during the lookback period file and pay by the 15th of the following month.5Cornell Law Institute. Georgia Compiled Rules and Regulations R 560-7-8-.33 – Payment and Reporting of Withholding Tax
- Semiweekly filers: employers withholding more than $50,000 in aggregate during the lookback period remit by electronic funds transfer on a semiweekly schedule. Paydays that fall Wednesday through Friday are due the following Wednesday; paydays that fall Saturday through Tuesday are due the following Friday.5Cornell Law Institute. Georgia Compiled Rules and Regulations R 560-7-8-.33 – Payment and Reporting of Withholding Tax
All employers file returns through the Georgia Tax Center.6Georgia Department of Revenue. Sign Up for Online Access with GTC Semiweekly filers must pay by EFT. Quarterly and monthly filers can also pay electronically through the portal.
Year-End Reconciliation on Form G-1003
After the calendar year closes, you file Form G-1003, the Withholding Income Statement Transmittal, to reconcile the withholding reported on your quarterly G-7 returns with the individual W-2s you issued.7Georgia Department of Revenue. G-1003 Withholding Income Statement Transmittal The totals have to match. If the sum of the W-2s doesn’t equal what you reported quarterly, the Department of Revenue flags it, which can delay employee refunds and open the business to audit.
The G-1003 and the W-2s go through the Georgia Tax Center. Electronic filing is encouraged for all employers and required when the return involves certain state tax credits.8Georgia Department of Revenue. Electronic Mandate Requirements for Filing Income Tax Returns
Penalties for Missing a Filing or Payment
Georgia charges failure-to-file and failure-to-pay penalties separately, so an employer who misses both faces both.9Georgia Department of Revenue. Penalty and Interest Rates
- Failure to file: $25 plus 5% of the tax withheld for the first month late, and another 5% for each additional month, capped at $25 plus 25% of the total.
- Failure to pay: same structure. $25 plus 5% for the first month, another 5% per month after, capped at $25 plus 25%.
- Failure to withhold at all: a flat $10 penalty per employee per quarter for each employee whose wages weren’t properly withheld.
The combined filing and payment penalties for any single quarter can’t exceed $25 plus 25% of the tax withheld or that should have been withheld.9Georgia Department of Revenue. Penalty and Interest Rates Interest also accrues monthly on unpaid balances at the federal prime rate plus three percent, adjusted each January.
Employees Who Work Across State Lines
Georgia has no reciprocal income tax agreements with any neighboring state. Withhold Georgia tax on wages earned for work performed in Georgia, regardless of where the employee lives. An employee who lives in Georgia but works in another state, or the reverse, may need to file in both states and claim a credit on their personal return, but that doesn’t change your withholding obligation on Georgia-source wages.