Personal income tax
Georgia collects income taxes from its residents at the following rates.
For single taxpayers:
- 1 percent on the first $750 of taxable income.
- 2 percent on taxable income between $751 and $2,250.
- 3 percent on taxable income between $2,251 and $3,750.
- 4 percent on taxable income between $3,751 and $5,250.
- 5 percent on taxable income between $5,251 and $7,000.
- 6 percent on taxable income exceeding $7,000.
For married persons filing joint returns and heads of households, the rates remain the same but the income brackets cover earnings from $1,000 (at 1 percent) to $10,000 (at 6 percent).
Georgia tax returns are due April 15, or the next business day if that date falls on a weekend or holiday.
Taxpayers age 62 to 64 or those permanently and totally disabled may exclude up to $35,000 of retirement income. The retirement exclusion is $65,000 if the taxpayer is 65 or older.
A tax credit is allowed to Georgia residents for income taxes paid to other states, but not to foreign countries.
Some Georgia residents whose federal adjusted gross income is no more than $19,999 might be eligible for a low-income tax credit.
Georgia state sales tax is 4 percent.
Prescription drugs, certain medical devices and groceries are exempt from sales and use tax.
Local jurisdictions may impose additional sales taxes. These could include levies for local option tax, educational local option tax, special purpose local option tax, homestead local option tax or Metropolitan Atlanta Rapid Transit Authority, or MARTA, tax.
Atlanta also collects a 1 percent municipal option sales tax on transactions where the customer takes delivery of the item being sold or an item is used within the incorporated city limits of Atlanta, except for vehicles.
Personal and real property taxes
All real and personal property are taxable unless specifically exempted by law. Real property is land and anything built on it, growing in it or affixed to it. Personal property is everything owned that is not real estate.
Real property is taxable in the county where the land is located. Personal property is taxable in the county where the owner has his or her permanent legal residence.
Each county administers its own system and sets its millage rate to arrive at the amount of ad valorem tax due.
Property taxes are due on property that was owned on Jan. 1 for the current tax year. Property tax returns are due to the county tax receiver or the county tax commissioner between Jan. 1 and April 1.
Homestead exemptions of up to $2,000 are available to persons who own and occupy their home as a primary residence. Certain homeowners who meet income limits and are age 65 and older may claim a $4,000 exemption. Apply for a homestead exemption through the local county tax commissioner if you reside in a home you own by Jan. 1.
Inheritance and estate taxes
There is no inheritance tax in Georgia.
Legislation enacted in 2005 repeals the requirement to file a Georgia estate tax return for dates on which the federal estate tax law does not allow a credit for state death tax.
Other Georgia tax facts
The Georgia Department of Revenue has entered into an agreement with several software companies to offer free electronic filing of state returns for qualified Georgia taxpayers.
Georgia taxpayers can check the status of their refunds online.