How Georgia taxes your paycheck
Georgia taxes income at a flat 4.99% for 2026. The rate was cut, along with a bigger standard deduction, by a law signed in May 2026 that applies back to January 1. It replaced the 5.19% rate that applied in 2025.
The standard deduction is now $15,000 for single filers and heads of household and $30,000 for married couples filing jointly. Georgia has no personal exemption for yourself or your spouse, though each dependent is worth $5,000, and there are no state payroll taxes on employees and no local income taxes.
Georgia income tax = 4.99% × (wages − 401(k) − health premiums − standard deduction)
- Standard deduction: $15,000 single, $30,000 married filing jointly, $15,000 head of household.
From six brackets to one rate
Until 2023 Georgia taxed income in brackets that topped out at 5.75%. A 2022 law (HB 1437) replaced them with a single rate from 2024, and later laws have lowered it faster than first planned:
| Tax year | Rate | Set by |
|---|---|---|
| 2023 | 1% to 5.75% | Graduated brackets |
| 2024 | 5.39% | HB 1015 (2024) |
| 2025 | 5.19% | HB 111 (2025) |
| 2026 | 4.99% | HB 463 (2026) |
Under HB 463 the rate then falls by 0.125 of a point each January from 2027 until it reaches 3.99%, and the standard deduction rises by $375 a year ($750 for married couples) until it reaches $18,000 ($36,000). Each step waits a year whenever the governor's revenue estimate for the next fiscal year isn't at least 3% higher, the last year's collections didn't beat each of the three before, or the state's rainy-day reserve couldn't cover the cost.
Dependents and retirement income
Georgia dropped its personal exemption for you and your spouse in 2024, but each dependent is still worth a $5,000 deduction in 2026, rising by $125 a year from 2027 until it reaches $6,000.
Retirees get a generous exclusion. Each person aged 62 to 64, or totally and permanently disabled, can exclude up to $35,000 of retirement income, and each person 65 or older up to $65,000, rising to $70,000 from 2027. It covers pensions, annuities, interest, dividends, capital gains and rent, plus up to $4,000 of earned income, and Social Security isn't taxed by Georgia at all. The limit is per person, applied to each spouse's own retirement income, so a married couple both over 65 can exclude up to $65,000 each.
Worked example
You earn $75,000 a year in Georgia, file single and are paid every two weeks. Federal income tax is $7,670 and Social Security and Medicare $5,738, the same in every state.
Georgia taxes $60,000 of it, for $2,994 of state income tax. You keep $58,599 a year, or $2,253.79 per paycheck: $2,994 a year less than in a state with no income tax.
The same salary takes home $61,593 in Florida and $59,109 in North Carolina.
Take-home pay in Georgia by salary
Single filer, paid every two weeks, no 401(k) or premiums.
| Salary | Georgia tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $40,000 | $1,248 | $33,073 | $1,272.02 |
| $60,000 | $2,246 | $48,145 | $1,851.71 |
| $80,000 | $3,244 | $61,867 | $2,379.48 |
| $100,000 | $4,242 | $74,939 | $2,882.25 |
| $150,000 | $6,737 | $107,055 | $4,117.48 |
Things to know
- Withholding ran high earlier this year. Employers withheld at 5.19% until the new law took effect in May, so many Georgians will get some of that back as a refund when they file for 2026.
- Overtime and tips. New for 2026, Georgia lets you deduct up to $1,750 of overtime pay and up to $1,750 of cash tips. You claim them on your return; they don't change your paycheck.
- This estimates what you owe, not what's withheld. Withholding follows your W-4 and Georgia's own withholding form, so paychecks can differ a little; the difference comes back as a refund or is due when you file. The W-4 withholding calculator checks the federal side.
Questions people ask
What is Georgia's income tax rate for 2026?
A flat 4.99% after the standard deduction. Further cuts in later years depend on state revenue meeting targets, so the 2027 rate isn't set yet.
Why was too much Georgia tax withheld earlier in 2026?
The lower rate was signed in May but applies to the whole year, and withholding tables didn't change until then. The difference comes back when you file your 2026 return.
Does Georgia have local income taxes?
No. Georgia cities and counties raise money through sales and property taxes; the only income tax on wages is the state's.
Paycheck calculators for other states
California · Florida · Illinois · Michigan · New York · North Carolina · Ohio · Pennsylvania · Texas. For any other state, the paycheck calculator takes your state's rate.
Sources
- Georgia HB 463 (2026), signed May 11, 2026: 4.99% rate and higher standard deduction from January 1, 2026
- Georgia Department of Revenue: 2026 Employer's Tax Guide (updated September 2026)
- Georgia Department of Revenue: important tax updates
- Georgia Department of Revenue: low income tax credit
- Office of the Governor: HB 1015 signed (5.39% for 2024, down from a top rate of 5.75%)
- Georgia HB 111 (2025): 5.19% for 2025
- Georgia Department of Revenue: retirees FAQ (retirement income exclusion)
- IRS: tax inflation adjustments for tax year 2026 (federal brackets and standard deduction)
- Social Security Administration: contribution and benefit base ($184,500 in 2026)
Reviewed October 11, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.