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Official Tax Guide

Georgia Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to Georgia state taxes. Income tax (5.49% (Flat)), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

Georgia State Tax Guide 2025

Moving to Georgia involves understanding the state's tax landscape. Georgia is known for a relatively low flat income tax rate and a moderate sales tax. This guide provides an overview of key taxes for new residents in 2025.

1. Income Tax

Georgia utilizes a flat income tax rate. This structure simplifies filing compared to states with progressive brackets, where rates increase as income rises.

  • Rate: The state income tax rate is a flat 5.49% for the 2025 tax year.
  • Structure: Regardless of income level—whether you earn $40,000 or $400,000—the state tax rate remains constant at 5.49%.
  • Filing: Residents file Georgia state income tax returns annually, typically by April 15th.

2. Sales Tax

Georgia’s sales tax is applied to the purchase of goods and some services. While the state sets a base rate, local jurisdictions add additional taxes, resulting in varying rates across the state.

  • State Rate: The statewide sales tax rate is 4%.
  • Local Taxes: Counties and cities can levy additional sales taxes. When combined, the total sales tax rate typically ranges from 4% to 8% depending on the specific location.
  • Exemptions: Unprepared food (groceries) is exempt from the state sales tax, though local taxes may still apply. Prescription drugs are also generally exempt.

3. Property Tax

Property taxes in Georgia are administered at the local level (county and city). There is no state-level property tax.

  • Assessment: Taxes are based on the assessed value of real estate. County tax assessors determine property values, typically reassessing every few years.
  • Rates: Effective tax rates vary significantly by county. Generally, Georgia property tax rates are lower than the national average. Homeowners may qualify for various exemptions, such as a standard homestead exemption for primary residences.
  • Payment: Property taxes are paid annually to the county tax commissioner.

4. Other Taxes

Beyond income and sales, new residents should be aware of specific excise and state taxes.

  • Motor Fuel Tax: Georgia utilizes a variable excise tax on gasoline and diesel fuel, which is adjusted annually based on the Consumer Price Index (CPI). As of 2025, the total state tax on gasoline is approximately 31 to 32 cents per gallon (excluding federal taxes).
  • "Sin" Taxes: Excise taxes apply to specific goods:
    • Alcohol: Rates vary by type (beer, wine, spirits) and content.
    • Tobacco/Nicotine: A state excise tax is applied to cigarettes and vaping products. The rate for cigarettes is roughly $0.37 per pack.
  • Inheritance/Estate Tax: Georgia does not have a state inheritance or estate tax. However, federal estate tax rules still apply for larger estates.

5. Retiree Taxes

Georgia is generally considered tax-friendly for retirees.

  • Social Security: Social Security benefits are exempt from Georgia state income tax.
  • Retirement Income: A portion of retirement income (including pensions and certain IRA distributions) may be excluded from taxation. For single filers, the maximum exclusion is generally up to $10,000 (depending on age and specific income sources), while married couples filing jointly may exclude up to $20,000.
  • Senior Exemptions: Seniors (65+) may qualify for additional property tax exemptions on their primary residence, though these vary by county.

6. Comparison to Neighbors

Georgia’s tax structure differs from its surrounding states:

  • Florida: Florida has no state income tax, making it attractive for high earners. However, Florida’s sales tax and property tax rates are generally higher than Georgia’s.
  • Tennessee: Tennessee also has no state income tax on wages (though it taxes investment income). Sales tax in Tennessee is significantly higher than in Georgia, often exceeding 9% in some areas.
  • Alabama: Alabama has a progressive income tax with relatively low rates for lower incomes but higher rates for high earners. Property taxes in Alabama are among the lowest in the nation, generally lower than Georgia.
  • South Carolina: South Carolina has a progressive income tax system with rates ranging from 0% to 6.5%. Sales tax is generally comparable to Georgia, though property tax rates can be higher in certain SC counties.

Disclaimer: Tax laws change frequently. The information provided in this guide is for general informational purposes only and is not a substitute for professional tax advice. Consult a CPA or tax professional for advice specific to your financial situation.