Georgia State Income Tax
Georgia state income taxes represent a significant portion of their annual costs for many individuals. Because of this, it’s important to understand how these taxes work and what strategies can be used to reduce them. Georgia’s tax rates range from 1 percent to 5.75 percent and are progressive, meaning that the rate of taxation increases as your taxable income increases. In 2024, single filers will enter the top bracket at $7,000 in earnings, and married couples will file jointly at $10,000.
In addition to income tax, Georgia also levies a corporation net worth tax and may tax pass-through entities at the entity level. These include S corporations, partnerships, and LLCs taxed as partnerships. However, special rules apply for S corporations that make the federal S election and for nonresident owners of S corporations.
Other sources of taxable income in Georgia include long-term capital gains, qualified dividends, and certain rental income. The state also imposes a sales tax and has a high property tax. However, it offers some tax breaks for retirement income and does not levy a state inheritance or estate tax.
Georgia State Income Tax Due Dates
Individuals are required to file a Georgia income tax return by April 15 (for calendar year filers) or the 15th day of the fourth month following the end of the taxable year. The state also offers a six-month filing extension, which moves the due date to October 15. A valid Federal tax extension (IRS Form 4868) will also automatically extend your Georgia state income tax deadline.
The move to align with the IRS will make filing and paying both state and federal taxes as easy as possible for Georgia taxpayers. However, it does not extend the deadline for filing and paying other types of state tax, including business taxes and estimated tax payments. It also does not extend the due date for payroll tax payments.
Georgia State Income Tax Exemption
While Georgia doesn’t offer a traditional state income tax exemption for individuals, there are specific situations and groups that qualify for deductions and exclusions that can significantly reduce their tax burden:
- Some items, such as groceries, prescription drugs, and religious materials, are exempt from Georgia sales tax.
You can find a complete list of exemptions on the Georgia Department of Revenue website:
Taxpayers 62 or older may claim a retirement income exclusion on adjusted gross income from pensions, annuities, interest, dividends, rental property, and royalties (up to $4,000 for earned income).
Military personnel can exclude up to $17,500 of military retirement income for all ages and an additional $17,500 if their earned income in Georgia exceeds $17,500.
