Everything You Need To Know About Georgia State Taxes
The state of Georgia requires you to pay taxes if you are a resident or nonresident that receives income from a Georgia source. The state income tax rates range from 1% to 5.75%, and the general sales tax rate is 4%. Jurisdictions located in the state may charge additional sales taxes.
Georgia state offers tax deductions and credits to reduce your tax liability, including a standard deduction, itemized deduction, disaster assistance credit and a low-income tax credit.
Georgia Income Tax Brackets and Rates: Single Filers
Georgia Income Tax Brackets and Rates: Married Filing Jointly or Head of Household
Georgia Income Tax Brackets and Rates: Married Filing Separate
Income Tax Deductions for Georgia
Standard Deduction
The state of Georgia offers a standard and itemized deduction for taxpayers. The 2021 standard deduction allows taxpayers to reduce their taxable income by $4,600 for single filers, $3,000 for married filing separate and $6,000 for married filing jointly. There is an additional standard deduction of $1,300 for those aged 65 or over, and blind.
Itemized Deductions
Generally, if you itemize your deductions on your federal return, you must itemize them on your Georgia return.
Exemptions
The state of Georgia has personal exemptions to lower your tax bill further. The exemption is $2,700 for single filers, heads of households or qualifying widowers, $3,700 for married filing jointly and separately, and $3,000 per qualifying dependent.
Georgia State Income Tax Credits
Child and Dependent Care Expense Credit
Taxpayers with dependents can claim a credit for qualified child and dependent care expenses, such as money spent for care outside of your home. The credit is worth 30% of the credit claimed on your federal income tax return.
Disabled Person Home Purchase or Retrofit Credit
A permanently disabled person that buys a single-family home with accessibility features (such as a no-step entrance) can claim a credit up to $500. If a permanently disabled person retrofits an existing single-family home with accessibility features, they can claim a credit up to $125. This credit can be carried forward for three years.
Disaster Assistance Credit
If you receive disaster assistance (such as grants from FEMA or Small Business Administration loans in response to a declared disaster) during the tax year, you can claim a credit up to $500. This credit is nonrefundable, which means it can’t trigger a tax refund, but it can be carried forward until it’s completely claimed.
Eligible Single-Family Residence Tax Credit
The state of Georgia offers a tax credit for those who bought a single-family residence in the state. The credit amount is less than 1.2% of the purchase price or $1,800. This credit is nonrefundable, which means it can’t trigger a tax refund, but it can be carried forward until it’s completely claimed.
Other States Tax Credit
Full-year and part-year residents can claim a credit for income tax paid to another state to avoid paying tax on it twice.
Qualified Caregiving Expense Credit
If you paid for caregiving expenses (adult day care, health care equipment, etc.) for a qualifying family member (which can be yourself or some related to you by blood, marriage or adoption), you can claim 10% of the costs, up to a $150, on your Georgia state tax return. The credit is nonrefundable, which means it can’t trigger a tax refund, and it can’t be carried over to the next year.
Qualified Education Expense Credit
Qualified education expenses, such as tuition and student activity fees, can be claimed on your Georgia state tax return. You must request pre-approval electronically to claim the credit. The state of Georgia will only give out up to $100 million in this credit per year, so it’s on a first-come, first-serve basis—which means you’ll want to take action as soon as possible to claim it.
Qualified Education Donation Tax Credit
Those who make qualified education donations can claim a credit for them on their Georgia state tax return. The state of Georgia will only allow $5 million in this credit each year (through 2023) and you must request pre-approval electronically before claiming it. This credit is on a first-come, first-serve basis—which means you’ll want to take action as soon as possible to claim it.
Low-Income Credit
If your federal adjusted gross income is less than $20,000, then you are eligible for Georgia’s low-income tax credit. Part-year residents can only claim this credit if they were residents at the end of the tax year. This credit is nonrefundable, which means it can’t trigger a tax refund.
Do I Have to Pay Income Tax in Georgia?
You are required to file a Georgia tax return if you receive income from Georgia and you fall into one of the following categories:
- Full-year resident: Your legal residence is in Georgia, even if you are absent from it or live out of state temporarily during the year.
- Part-Year resident: You were a legal resident of Georgia for only a portion of the tax year.
- Nonresident: You didn’t live in Georgia but received income from Georgia sources, such as wages, lottery winnings and rent.
Sales Tax and Sales Tax Rates
Georgia charges a sales tax of 4%. However, different jurisdictions may charge an additional sales tax.
Property Taxes and Property Tax Rates
Property Tax Exemptions
Georgia provides property tax exemptions for homeowners, people aged 62 and older, disabled veterans and the surviving spouses of U.S. service members and peace officers or firefighters. The exemption amount varies.
Capital Gains Taxes
Georgia doesn’t have a capital gains tax.
Inheritance and Estate Tax and Inheritance and Estate Tax Exemption
Georgia doesn’t have an inheritance or estate tax.
