Georgia — Personal Income Tax

Georgia imposes a personal income tax on every resident with respect to Georgia taxable net income. The tax is also imposed on nonresidents with respect to Georgia taxable net income not otherwise exempted that is received from services performed in Georgia, property owned in Georgia, lottery prizes awarded by the Georgia Lottery Corporation, or business carried on within Georgia.

Flat Tax Rate for 2026 and Later: Beginning January 1, 2026 (for tax year 2026 filings), Georgia imposes a flat income tax rate of 4.99 percent on both residents and nonresidents with Georgia-source income. This reduction (from 5.19% for tax year 2025) was enacted as part of the Georgia Economic Growth and Tax Relief Act of 2026 (HB 463) and confirmed by the Georgia Department of Revenue and the Governor's Office. Additional future reductions, in 0.125 percentage point intervals, may occur if certain revenue targets are met, until a statutory floor of 3.99% is reached, as detailed in HB 463.

Nonresident Withholding: Employers must generally withhold Georgia income tax from nonresident employees if more than 5% of their total earned income is attributable to Georgia, or if more than $5,000 of their wages are for services performed in Georgia.

Authority and Effective Date: This update reflects the official reduction in the personal income tax rate to 4.99% beginning with tax year 2026, as enacted by HB 463 and confirmed by both the Department of Revenue and the Governor’s Office. Readers should consult the most recent Department of Revenue publications for any further statutory changes affecting either rate, exemptions, or tax base.

Source: Georgia DOR — Important Tax Updates Source: Gov. Kemp Signs Legislation Lowering Taxes and Supporting Economic Growth (HB 463, 2026) Source: O.C.G.A. § 48-7-20(a.1), as amended by HB 463 (2026)

Georgia imposes a flat individual income tax rate of 4.99 percent for taxable years beginning on or after January 1, 2026. This rate is established under O.C.G.A. § 48‑7‑20(a.1), as most recently amended by the Georgia Economic Growth and Tax Relief Act of 2026 (HB 463). HB 463, signed into law by the Governor on May 11, 2026, accelerated the previously enacted phase‑in and immediately reduced the flat rate to 4.99% beginning in tax year 2026. Prior to this amendment, Georgia law anticipated gradual annual reductions subject to revenue triggers, and scheduled the rate for 2026 at 5.19%. The statutory amendment in HB 463 both accelerated and extended the tax cut.

Under the current law, the 4.99% rate applies to all Georgia individual income taxpayers regardless of income level or filing status starting with the 2026 tax year. HB 463 also authorized further annual reductions of 0.125 percentage points, subject to annual state revenue triggers, until a permanent rate floor of 3.99% is reached. If the necessary revenue growth conditions are not met in a given year, the rate remains fixed at its then-current level until the triggers are satisfied in a subsequent year.

This structure replaced Georgia’s prior graduated tax brackets (with rates up to 5.75% through tax year 2023) and superseded the previously scheduled phased reductions. For the operative text and rate schedule, consult O.C.G.A. § 48‑7‑20(a.1) as amended by HB 463 (2026) and the current Important Tax Updates maintained by the Georgia Department of Revenue.

This section was updated on the basis of the statutory amendment and agency confirmation as of June 17, 2026.

Source: Georgia DOR — Important Tax Updates Source: O.C.G.A. § 48-7-20(a.1), as amended by HB 463 (2026)

Georgia individual income tax returns are due on April 15 following the close of the tax year. For the 2025 tax year, the filing deadline is April 15, 2026. Georgia automatically grants a six-month extension to file if the taxpayer has obtained a federal extension or files Georgia Form IT-303 by the original due date, extending the deadline to October 15. An extension to file does not extend the time to pay any tax due.

Source: Important Tax Updates

Effective for tax year 2026 (returns filed in 2027), Georgia increased its standard deduction amounts under HB 463 (2026) and the amendments to O.C.G.A. § 48-7-27.1. The new standard deduction is $15,000 for single filers, heads of household, qualifying surviving spouses, and married taxpayers filing separately, and $30,000 for married couples filing jointly. This change replaces the previous amounts of $12,000 (single) and $24,000 (joint) that were in effect through tax year 2025.

Annual Indexing Mechanism: Beginning with tax year 2027, both standard deduction amounts are scheduled to increase automatically each year: $375 per year for singles, and $750 per year for joint filers. The annual increases continue until the standard deduction reaches $18,000 for single filers and $36,000 for married filing jointly (projected in tax year 2031), at which point the amounts are fixed unless further legislative amendments are enacted.

Selection of Deductions: As before, taxpayers must choose either the standard deduction or to itemize deductions; both may not be claimed in the same year. These amounts are not subject to inflation indexing beyond the annual step amounts set by statute.

Authority and Confirmation: This update reflects material changes enacted by HB 463 (2026) as confirmed in both the amended statutory text and the Department of Revenue’s 2026 Important Tax Updates. Practitioners are advised to check the DOR’s annual instructions for any further legislative updates affecting the standard deduction schedule.

Source: Georgia DOR — Important Tax Updates Source: O.C.G.A. § 48-7-27.1, as amended by HB 463 (2026)

For taxable years beginning on or after January 1, 2026, Georgia allows a $5,000 personal exemption for each dependent when computing Georgia taxable income. This increase, enacted by HB 463 (2026), replaces the previous $4,000 exemption that applied for tax years 2024 and 2025. The term "dependent" is defined as under the Internal Revenue Code of 1986, and Georgia law continues to recognize an unborn child with a detectable human heartbeat as a dependent.

The statute further provides for scheduled annual increases to the dependent exemption beginning in 2027. The $5,000 amount will increase by $125 each tax year, reaching $6,000 for taxable years beginning on or after January 1, 2034.

Personal exemptions for the taxpayer and spouse remain eliminated starting with tax year 2024 under the same law. Only the dependent exemption remains in effect, with its increased amount and phased schedule.

Source: O.C.G.A. § 48-7-26, as amended by HB 463 (2026)

Georgia defines "resident" for personal income tax purposes under three alternative tests codified at O.C.G.A. § 48-7-1(10)(A). An individual is a resident if any one of the following three conditions is met as of the relevant income tax day (December 31 for calendar-year taxpayers):

Legal resident (domicile test) An individual is a resident if he or she is a legal resident of Georgia on income tax day. A legal resident is someone who is physically present in Georgia on December 31 with an intention to remain in Georgia indefinitely. This test turns on domicile—the permanent home to which one intends to return. Domicile is established through physical presence coupled with intent to remain, and is not lost until a new domicile is affirmatively established in another state.

More-or-less regular or permanent basis resident An individual who is not a legal resident but who nevertheless resides in Georgia on a more or less regular or permanent basis—not on the temporary or transitory basis of a visitor—and who resides in the state on income tax day is also a resident. This category captures individuals who maintain a habitual presence in Georgia without establishing formal domicile, but whose connection to the state is more than temporary.

183-day statutory resident An individual is a resident if, as of December 31, he or she has been residing in Georgia for 183 days or part-days (or longer), in the aggregate, during the immediately preceding 365-day period. Days are cumulative and need not be consecutive; partial days count as full days. Unlike the first two tests, the 183-day test does not require presence on December 31 itself—it looks back 365 days from December 31 and counts total days of presence. Individuals who meet the 183-day test are taxed as full-year residents and may not prorate their income for the portion of the year before they arrived in Georgia.

Continuing-residence presumption Under O.C.G.A. § 48-7-1(10)(B), an individual who has become a resident under the legal-resident or more-or-less-regular-basis tests is deemed to continue to be a resident until the person shows to the satisfaction of the Georgia Department of Revenue that he or she has become a legal resident or domiciliary of another state and does not come within the 183-day test. This creates a sticky presumption: once domiciled in Georgia, the burden is on the taxpayer to prove both that a new domicile has been established elsewhere and that the 183-day threshold is not exceeded. The presumption does not apply to 183-day statutory residents.

Residents are taxed on all Georgia taxable net income from all sources; nonresidents are taxed only on Georgia-source income. The distinction is foundational and determines the scope of Georgia's taxing jurisdiction over the individual.

Source: O.C.G.A. § 48-7-1(10)

Georgia imposes a penalty for underpayment of personal income tax estimated installments. Two safe harbor rules under O.C.G.A. § 48-7-120(d) allow taxpayers to avoid this penalty entirely by meeting one of the following payment criteria:

• Current‑year safe harbor (individuals): Pay at least 70 percent of the tax shown on your current‑year return, through timely estimated tax payments plus withholding. (A reduced threshold of 66 2/3 percent applies to individuals deriving income primarily from farming or fishing.) • Prior‑year safe harbor: Pay an amount at least equal to 100 percent of the tax shown on your prior year's Georgia return, as long as that prior year was a full 12‑month year and a return was filed.

Meeting either threshold prevents the imposition of the underpayment penalty—even if you owe additional tax when filing your annual return. The penalty for underpayment of estimated tax by individuals is 9 percent per annum on the underpaid amount, calculated separately for each installment period, consistent with the Department of Revenue's published penalty schedule.

Importantly, Georgia's thresholds differ from the federal system—Georgia uses a lower 70 percent current‑year threshold (not 90 percent), and the prior‑year safe harbor remains flat at 100 percent regardless of income level.

Source: O.C.G.A. § 48-7-120 (statute); Georgia DOR Penalty and Interest Rates (official DOR guidance).

Temporary Exclusion Under HB 463 (2026–2028)

For tax years beginning on or after January 1, 2026, and before January 1, 2029, Georgia excludes from state taxable income up to $1,750 of "qualified overtime compensation" and up to $1,750 of "cash tips" per individual taxpayer. This temporary exclusion was enacted by HB 463 (2026) as an amendment to O.C.G.A. Title 48, Article 2, § 48-7-27(17) and related provisions.

Definition and Source Law:

• Qualified overtime compensation is defined in the statute by explicit reference to the Internal Revenue Code § 225 (26 U.S.C. § 225), as incorporated by Georgia law. The amount must be paid to a full-time hourly employee for hours worked in excess of forty in a week and must meet the criteria for qualified overtime compensation under federal law. Discretionary bonuses, holiday premium pay, or other wage types not included under IRC § 225 do not qualify unless expressly covered by subsequent regulations or Department of Revenue guidance.
• Cash tips are defined as cash or charged tips customarily and regularly received directly by employees in occupations where tips are typical, as described by HB 463. Mandatory employer-imposed service charges are not qualifying tips.

Employer Reporting Requirements: HB 463 requires employers to report both:

• The aggregate amount of qualified overtime compensation paid to all full-time hourly employees.
• The aggregate amount of cash tips received by all employees, and the number of employees who received such tips.

This reporting must be made in the manner and on forms prescribed by the Georgia Department of Revenue, generally on a monthly or quarterly basis coinciding with the employer’s standard withholding tax schedule.

Effective Tax Years:

• The temporary exclusion applies only to tax years beginning on or after January 1, 2026 and before January 1, 2029. Taxpayers are responsible for substantiating excluded amounts upon request.

Open Points:

• If the Georgia DOR issues further regulations, publications, or FAQs defining terms more specifically or modifying these requirements, such guidance will control compliance for future tax years. As of June 2026, the statutory language and existing DOR guidance govern.

Summary of 2026 Amendments:

• This update clarifies that the statutory definition of qualified overtime compensation now explicitly references IRC § 225, and the employer reporting mandate covers both overtime and tips, not only tips as previously stated.

Source: HB 463 (2026), amending O.C.G.A. Title 48, Article 2, § 48-7-27(17) and related provisions

Georgia requires employers to withhold state income tax from nonresident employees only if wages earned for services performed in Georgia exceed the lesser of $5,000 or 5% of the employee’s total earned income for the year. For tax year 2026, this threshold remains in effect pursuant to the Department of Revenue’s published Employer’s Tax Guide (2025, revised June 2025). If a nonresident employee’s Georgia-source wages do not exceed both $5,000 and 5% of total earned income (from all sources, not just from Georgia), the employer is not required to withhold Georgia income tax on those wages. If either threshold is exceeded, withholding applies to all Georgia-source wages.

Legal authority: O.C.G.A. § 48‑7‑100(10)(K) delegates to the Department of Revenue the authority to set when nonresident wages become subject to withholding, and the Department annually confirms this threshold in the Employer's Tax Guide. As of the June 2025 edition—which explicitly addresses withholding for tax year 2026—the dual threshold rule is controlling unless superseded by later DOR guidance.

Withholding applicability and compliance: Employers should require nonresident employees to certify their estimated total earned income on Georgia Form G-4 to properly apply the 5%/$5,000 test. Records supporting this determination should be retained in case of audit. The Guide does not separately define "total earned income" beyond its plain meaning; if a future version clarifies, that control applies going forward.

Source: Georgia Department of Revenue, Employer’s Tax Guide (2025, revised June 2025), p. 6–7

Not yet human confirmed.

The implementation of Georgia's flat individual income tax under HB 463 (effective January 1, 2026) brought significant changes to personal, business, and employer-related tax credits, as codified and applied beginning with the 2026 tax year.

1. Credits Repealed by HB 463: HB 463 repealed a set of business, industry, and certain employment-related credits effective for taxable years beginning in 2026. Repealed credits, as listed in the DOR's official guidance, include—among others—the Business Enterprise Vehicle Credit, Multiple Port Activity Credits, Zero/Low Emission Vehicle Credits, Teleworking Credit, and Life Sciences Manufacturing Jobs Credit. These repeals primarily affect business or employer filers; the abolished credits did not historically include major income tax credits available to individual wage earners, retirees, or typical personal filers.

2. Core Individual Credits Remaining in Effect: HB 463 did not repeal or materially amend the principal personal income tax credits and subtractions used by individuals. Notably:

• The Low Income Credit (Credit 211), Child and Dependent Care Credit (Credit 202), Georgia National Guard Credit, Rural Physician Credit, and Qualified Caregiver Credit all continue.
• The retirement income exclusion (not a credit, but a subtraction) remains available—and increases in scheduled steps, under HB 463 and Act 465 (see /guides/georgia/personal-income#retirement-income-exclusion).
• The Senior Income Tax Credit, as well as personal and dependent exemptions, are unchanged except for scheduled increases.
• An updated DOR list explicitly documents which credits are repealed for individuals and confirms the status of those retained.

3. New and Temporary Credits for 2026:

• One-Time Individual Credit: HB 463 created a one-time, nonrefundable individual income tax credit for residents who paid state income tax in either 2024 or 2025. This credit, up to $500 for single filers ($1,000 joint), can be claimed on 2026 returns. Final details are subject to DOR's administrative guidance.
• Georgia Employer Childcare Expense Credit (Credit 162): Also launched by HB 463, this new employer-side credit is claimed by employers (not by individual taxpayers), for qualified contributions to workplace or contracted childcare. It is not a direct taxpayer credit, but practitioners should be aware of its availability (see DOR's summary at Tax Updates 2026).

Summary (June 2026): As of the latest statutory and agency publications (June 2026), Georgia's flat tax regime repeals certain business/employer credits, leaves all major individual credits (and retirement subtractions) in effect, and adds a new one-time individual credit for 2026 filers. Only those credits listed in the official DOR repeal list are affected, and practitioners should always consult current DOR publications to confirm eligibility.

Source: Georgia DOR — Repealed Tax Credits Source: Georgia DOR — Important Tax Updates Source: HB 463 (2026) Source: Georgia Legislative Counsel 2026 Summary of Tax Changes

Georgia's standard deduction amounts for personal income tax were materially revised by HB 463 (2026), with significant changes effective for tax year 2026 and a new annual indexing mechanism beginning in 2027.

2026 Standard Deduction Amounts

• For tax year 2026 (returns filed in 2027):
• $15,000 for single filers, heads of household, qualifying surviving spouses, and married taxpayers filing separately
• $30,000 for married taxpayers filing jointly

These amounts replace the previous standard deductions of $12,000 and $24,000, respectively, that applied through tax year 2025.

Scheduled Annual Step-Increases (2027 and Beyond)

• Beginning with tax year 2027:
• The standard deduction increases by $375 annually for single, head of household, qualifying surviving spouse, and separate filers until reaching $18,000
• For joint filers, it increases by $750 annually until reaching $36,000
• Once the applicable ceiling is reached (currently projected for tax year 2031 unless further legislative amendment), the standard deduction is fixed at that level.

No Inflation Indexing Clause

• The increases are fixed-dollar annual step-ups, not tied to an inflation index. The statute does not grant the DOR authority to modify these increases by regulation—legislative action would be required for further adjustment.

Revenue Triggers and Legislative Amendments

• These scheduled increases are subject to the same annual state revenue triggers as other provisions in HB 463. If the required revenue growth conditions are not met, the new step increases are delayed until the trigger is met.

Statutory and Agency Confirmation

• HB 463 is controlling, as codified at O.C.G.A. § 48-7-27.1, and the Georgia Department of Revenue's Important Tax Updates (2026) and the draft Form 500-ES instructions for 2027 confirm this stepped schedule as operative unless amended.

Source: O.C.G.A. § 48-7-27.1, as amended by HB 463 (2026) Source: Georgia DOR – Important Tax Updates

Georgia allows a substantial exclusion from state taxable income for retirement income received by individuals age 62 or older, or those who are permanently and totally disabled, regardless of formal retirement status. The exclusion is set out in O.C.G.A. § 48-7-27(a)(5), with recent amendments enacted through HB 463 (2026) and further increased by statutory changes signed into law May 11, 2026, effective January 1, 2027.

Exclusion amounts and eligibility (updated):

• For tax year 2026: Individuals age 62–64 or permanently and totally disabled may exclude up to $80,000 of qualifying retirement income. Individuals age 65 or older may exclude up to $130,000. These amounts are per taxpayer, not per return; married couples filing jointly may each claim the full exclusion for which they qualify. (O.C.G.A. § 48-7-27(a)(5)(A)-(C)).
• The exclusion covers interest, dividends, net rental income, capital gains, royalties, pensions, annuities, and up to $4,000 of earned income for an otherwise eligible individual. (O.C.G.A. § 48-7-27(a)(5)(D)).
• Social Security income is not taxable in Georgia and is excluded entirely before computing the retirement exclusion. (O.C.G.A. § 48-7-27(a)(5)(E)).

Scheduled increases under HB 463 and Act 465 (2027 and later):

• For tax year 2027: The exclusion for individuals age 65 or older increases to $135,000; for ages 62–64 or permanently and totally disabled, it increases to $85,000.
• Additional annual $5,000 increases continue through tax year 2030 for both groups as set by statute, resulting in $150,000 (65+) and $100,000 (62–64/disabled) for tax year 2030.
• These statutory step-ups replace the prior $10,000 annual increases for 65+ and align the new law with the revenue triggers built into HB 463.

| Tax Year | Age 65+ Exclusion | Age 62–64/Disabled Exclusion | |----------|------------------|------------------------------| | 2026 | $130,000 | $80,000 | | 2027 | $135,000 | $85,000 | | 2028 | $140,000 | $90,000 | | 2029 | $145,000 | $95,000 | | 2030 | $150,000 | $100,000 |

Procedural compliance and limitations:

• The exclusion is claimed on Georgia Form 500, Schedule 1, Section B. DOR’s instructions confirm the definition of qualifying retirement income and require the taxpayer to retain supporting documents.
• Social Security and Railroad Retirement income remain entirely exempt and are not reported on the state return.
• Only $4,000 of wage or net self-employment income may be included in the exclusion; the remainder must come from other qualifying sources.

Material changes enacted:

• Effective May 11, 2026, the scheduled annual step-up amounts for the retirement exclusion changed from $10,000 increments (for age 65+) to $5,000 increments for both groups. The exclusion schedule as previously published is no longer current.

Source: O.C.G.A. § 48-7-27(a)(5), as amended by HB 463 (2026) and Georgia Act 465 (2026) Source: Georgia DOR — Individual Income Tax Booklet (latest hosted, IT-511, 2025) Source: Governor's Office Announcement on HB 463/Act 465 (2026)