Georgia State Taxes: What You’ll Owe in the 2026 Tax Season

Georgia transitioned to a flat income tax in 2024 and has gradually been lowering the rate, bolstering the state’s competitiveness, according to the Tax Foundation. However, two of its neighbors, Florida and Tennessee, have no income tax, and two others, Alabama and North Carolina, have lower income tax rates, giving Georgia less of an edge.

The big picture:

• Income tax: 5.19 percent flat tax in 2025.
• Property tax: Effective tax rate of 0.79 percent of a home’s assessed value, according to the Tax Foundation’s most recent data.
• Sales tax: In addition to the state’s 4 percent sales tax, local jurisdictions can impose their own sales tax, which vary and average 3.49 percent in 2026. That brings the average combined state and local sales tax to 7.49 percent.

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What about investment income?

Investment income is taxed at the state’s flat 5.19 percent rate.

Are Social Security benefits taxed?

No. Georgia does not tax Social Security benefits.  

How is property taxed?

Counties each assess their own property taxes, ranging from a low of 0.35 percent of a home’s assessed value in Towns and Twiggs counties to a high of 1.2 percent in Dougherty County. The statewide effective property tax rate was 0.79 percent, according to the Tax Foundation’s most recent data. The median property taxes paid ranged from $554 in Wheeler County to $4,033 in Fulton County.

What about sales and other taxes?

• Sales tax: Along with a 4 percent statewide tax, local jurisdictions can impose an additional sales tax, which can vary and averages 3.49 percent in 2026. The average combined state and local sales tax is 7.49 percent. The total sales tax burden ranges by jurisdiction from 6 percent to 9 percent. Exemptions: Food, prescription medication, lottery tickets and other items are exempt from statewide sales tax but may be subject to local sales taxes. Exemptions can be found here.
• Gas and diesel: Gasoline and diesel fuels are taxed at 33 and 37 cents per gallon, respectively, as of Jan. 1, 2026.
• Vehicle tax: The Title Ad Valorem Tax when a vehicle is purchased is 7 percent.
• Alcohol: Sales taxes on beer, wine and liquor are paid by customers at the retail level. Excise taxes on beer, wine and alcohol are based on the product, alcohol volume and where it is manufactured. Wholesalers collect those taxes when they deliver the product to retailers and send them to the state.
• Lottery: Winnings from lotteries are taxed at the state’s 5.19 percent flat income tax rate, and the state withholds 24 percent of any winnings above $5,000 for federal income taxes.

Will my heirs or estate have to pay inheritance and estate tax?

Georgia has no inheritance or estate tax.

What are the tax breaks for older residents?

• Standard homestead exemption: Homeowners may be granted a $2,000 exemption from property taxes on their primary residence. The $2,000 is deducted from the 40 percent assessed value of the homestead. For example, 40 percent of a house valued at $300,000 would be $120,000. The homestead exemption would reduce this to $118,000, lowering the base amount that is taxed at the local level. 
• 65 and older exemption: Residents who are 65 or older may claim a $4,000 exemption from all county ad valorem taxes if the income of that person and their spouse does not exceed $10,000 for the prior year. Income from retirement sources, pensions and disability income is excluded up to the maximum amount allowed to be paid to an individual and his or her spouse under the federal Social Security Act. The Social Security maximum benefit for 2025 is $96,432. 
• Disabled veteran or surviving spouse exemption: Disabled veterans who are U.S. citizens and residents of Georgia may be eligible for an exemption of either $32,500 or up to $121,812 of a home’s value (the maximum amount for a homestead exemption under federal law in 2025), whichever is greater. This exemption extends to the unremarried surviving spouse, as long as they remain living in the property.

Are military benefits taxed?