Taxes in Savannah
Georgia levies a flat 4.99% state income tax for 2026 -- a real, structural difference from the zero-income-tax states (Texas, Florida) covered elsewhere in this project -- alongside a combined Chatham County sales tax rate of 7.000% (state 4% plus county 3%, with no additional City of Savannah layer) and a genuine, if modest, real estate transfer tax that Texas simply does not have.
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Learn moreGeorgia's Flat State Income Tax
Georgia moved to a flat 4.99% state income tax rate for 2026, down from 5.19% in 2025, under an accelerated schedule set by HB 463 -- a real, current reduction, not a legacy figure. This applies to wage income the same as any other state with an income tax, and stands in contrast to Texas and Florida, both covered elsewhere in this project as zero-income-tax states; Georgia residents pay this tax where Houston or Corpus Christi residents do not, a genuine trade-off against Georgia's other cost advantages.
A Real Retirement Income Exclusion, Separate From the Property-Tax Picture
Georgia offers a retirement income exclusion of $35,000 per person for ages 62-64 and $65,000 per person for age 65 and older, applying to pensions and retirement-account withdrawals; Social Security income is not taxed by Georgia at all. For a married couple both 65 or older, that can shelter up to $130,000 of retirement income annually from state tax -- a real, meaningful benefit covered further on the retiring topic page.
Chatham County's Combined Sales Tax Rate
The combined sales tax rate in Savannah and the rest of Chatham County is 7.000% -- Georgia's 4% state rate plus a 3% county rate, with no separate City of Savannah sales tax layer added on top. This runs below Houston's 8.25% combined rate (already at the Texas statutory ceiling), a real, modest advantage for everyday purchases.
A Real Estate Transfer Tax Texas Buyers Won't Expect
Unlike Texas, which has no real estate transfer tax at all (a fact the Houston stack in this project notes explicitly), Georgia imposes one: $1.00 for the first $1,000 of consideration plus 10 cents for each additional $100, on most deeds conveying real property. On a $550,000 sale, that works out to $550; on Savannah's Historic District median near $940K-$944K (see the housing-market topic page), it would run roughly $940-$944. A separate intangible recording tax applies to new mortgages -- $1.50 per $500 of the loan's face amount (roughly 0.3%) -- for notes with a term longer than 62 months, a threshold raised from 36 months as of July 1, 2025.
Property Taxes (Summary -- See Full Topic Page)
Property tax is where Chatham County's tax picture gets genuinely more favorable than a headline rate suggests, thanks to the Stephens-Day homestead exemption -- see the property-taxes topic page for the full mechanics, the effective-rate figure this session could not independently corroborate, and the real local decision to opt out of Georgia's newer statewide exemption.
Key takeaways
- Georgia's flat state income tax dropped to 4.99% for 2026 (from 5.19% in 2025) -- a real, structural difference from the zero-income-tax states elsewhere in this project.
- A retirement income exclusion ($35,000/person age 62-64, $65,000/person 65+) plus Georgia's full exemption of Social Security income is a real, meaningful benefit for retirees -- see the retiring topic page.
- Chatham County's combined sales tax rate is 7.000% (4% state + 3% county, no added city layer) -- below Houston's 8.25% ceiling.
- Georgia levies a real estate transfer tax ($1 per first $1,000 of consideration + $0.10 per additional $100) that Texas does not have, plus a separate intangible recording tax on new mortgages of about 0.3% for notes over 62 months.
- Property tax carries a real local advantage via the Stephens-Day homestead exemption -- see the property-taxes topic page for the full picture, intentionally not repeated here.
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