Income Taxes in Georgia
Georgia's state income tax is a single flat rate on a legislated, multi-year phase-down -- 4.99% for tax year 2026 under HB 463, reached two years ahead of the original schedule -- with further cuts toward a 3.99% floor on the books but genuinely contingent on the state hitting its own annual revenue-growth triggers, not guaranteed on any fixed date.
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Learn moreFrom graduated brackets to a flat tax, on an accelerating schedule
Georgia converted from a six-bracket progressive system (1%-5.75%) to a flat tax starting in 2024 (5.49%), cut it again in 2025 (5.39%), and, via 2026's HB 463 (signed May 11, 2026, retroactive to January 1, 2026), accelerated straight to the original long-run target of 4.99% -- two years ahead of the prior schedule. This is a single flat rate, not graduated brackets, applying above the standard deduction.
Further cuts toward 3.99% exist in statute but are NOT guaranteed on a fixed schedule
Georgia statute allows further roughly 0.125-point annual cuts toward a 3.99% floor, but each step is contingent on the state meeting its own revenue-growth trigger for that year. As of mid-2026 reporting, the trigger for the next scheduled step had reportedly not been met, meaning no further cut beyond 4.99% is currently confirmed. Do not budget around an assumed future rate cut on a specific date -- treat 4.99% as the current, confirmed rate.
A real, genuine retirement-income exclusion softens the tax for retirees specifically
Georgia does not tax Social Security at any age. Separately, each Georgia resident age 65 or older can exclude up to $65,000 of other retirement income (pensions, IRA/401(k) distributions, interest, dividends, rental income, and capital gains) from state taxable income, with a $35,000 exclusion available at ages 62-64 -- claimed per person, so a married couple who both qualify can each claim their own exclusion. Georgia also reportedly expanded its military retirement income exclusion beginning in 2026 to a $65,000 deduction on military retirement pay available to military retirees of any age (WebSearch-sourced for this record; confirm current-year specifics with the Georgia Department of Revenue or a tax professional before relying on it, since this figure was not independently verified against a primary DOR filing). See the retiring topic for more.
A comparatively low, but real, tax alongside a comparatively low property tax burden
Georgia's income tax, even at a falling rate, is still a real tax that states with no income tax (like Florida or Texas) do not levy at all. Georgia's trade-off is a comparatively low property tax burden in exchange -- see the property-taxes topic. Movers optimizing purely for a zero-income-tax state should look elsewhere; movers comfortable with a falling-but-present flat rate in exchange for low property taxes and (for retirees) a generous retirement-income exclusion get a genuinely favorable combination in Georgia.
Key takeaways
- Georgia's state income tax is a flat 4.99% for tax year 2026 (HB 463, signed May 2026), reached two years ahead of the original phase-down schedule after converting from graduated brackets to a flat tax in 2024.
- Further cuts toward a 3.99% floor exist in statute but are contingent on annual revenue-growth triggers -- as of mid-2026 reporting the next step had not been triggered, so no further cut is currently confirmed.
- Social Security is untaxed at any age; Georgia residents 65+ can exclude up to $65,000 of other retirement income ($35,000 at 62-64), claimed per person.
- Georgia reportedly expanded its military retirement income exclusion to $65,000 for retirees of any age beginning 2026 -- confirm current specifics with the GA Dept. of Revenue, since this figure carries lower confidence in this research pass.
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