Georgia · the numbers
Georgia figures at a glance, 2026
Every Georgia number that matters for the 2026 return in one place: the 4.99% rate, the $15,000 and $30,000 standard deduction, the $5,000 dependent exemption, the retirement exclusions, the credits, the new tips and overtime subtractions, the estimated-tax rules and the dates, each with a one-line note and the 2025 figure beside it. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Georgia Department of Revenue sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a Georgia practitioner
Georgia’s return has few moving parts: one rate, one standard deduction figure per filing status, one dependent exemption, a retirement exclusion with two age tiers, and a short list of credits, none of them refundable. For 2026 nearly every one of those numbers moved. House Bill 463 cut the rate from 5.19% to 4.99%, raised the standard deduction 25%, and raised the dependent exemption $1,000, all retroactive to January 1, 2026. House Bill 136 added a $250 child credit. What did not move: Social Security is untaxed, the retirement exclusion is still $35,000 at 62 and $65,000 at 65 per person, the itemizer credit is $300, and there is no local income tax. The 2027 column below is “to come” in most rows because further cuts depend on revenue tests certified December 1, 2026.
The core figures
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Rate on Georgia taxable income | 5.19% | 4.99% | Flat. 4.865% for 2027 only if the three revenue tests are met (to come) |
| Starting point | Federal AGI | Federal AGI | Form 500 line 8. Below-the-line federal deductions never reach Georgia |
| Standard deduction, single / head of household / married filing separately | $12,000 | $15,000 | $15,375 for 2027 if tests met (to come) |
| Standard deduction, married filing jointly | $24,000 | $30,000 | $30,750 for 2027 if tests met (to come) |
| Extra standard deduction, age 65 or blind | None | None | The 2025 form shows none; HB 463 added none |
| Personal exemption, taxpayer and spouse | None | None | Eliminated with the 2024 flat tax |
| Dependent exemption, each | $4,000 | $5,000 | Worth $250 of tax at 4.99%. An unborn child with a detectable heartbeat counts (line 7b). $5,125 for 2027 if tests met (to come) |
| Itemizing | Forced | Forced | Itemize for Georgia if you itemized federally; state income tax added back; SALT piece limited to $10,000 |
| Social Security and Railroad Retirement | Not taxed | Not taxed | Federally taxable portion subtracted in full, Schedule 1 line 8, any age |
| Retirement income exclusion, 62 to 64 or disabled, per person | $35,000 | $35,000 | Pensions, IRAs, 401(k)s, interest, dividends, gains, rents, up to $5,000 of wages. Stays $35,000 for 2027 |
| Retirement income exclusion, 65 and over, per person | $65,000 | $65,000 | Rises to $70,000 for 2027 by statute. Each spouse applies it to his or her own income |
| Military retirement exclusion, under 62 | $17,500 | $17,500 | Plus another $17,500 if Georgia earned income exceeds $17,500 |
| Local income tax | None | None | No Georgia city, county or school district taxes income |
The 2026 rate, standard deduction and dependent exemption come from the Department of Revenue’s June 2026 Employer’s Tax Guide. The 2026 Form 500 had not been published when this was written.
Subtractions and additions on Schedule 1
| Item | Figure | Note |
|---|---|---|
| Cash tips subtraction (new) | Up to $1,750 | 2026 through 2028; occupations on the Treasury tipped list. Line to come |
| Overtime subtraction (new) | Up to $1,750 | 2026 through 2028; the premium half, full-time hourly employees (verify who qualifies). Line to come |
| Path2College 529 contributions, per beneficiary | $4,000 / $8,000 joint | No income limit; no carryforward |
| Interest on U.S. obligations | All | Treasuries, savings bonds |
| HB 1000 surplus refund, if taxed federally | All | Schedule 1 line 12, other subtractions |
| Bonus depreciation | Not allowed | Georgia recomputes depreciation; the difference is an addition or subtraction each year |
| Other states’ municipal bond interest | Added back | Georgia and federal bond interest stays exempt |
| Federal tips, overtime, senior and car-loan deductions | No effect | Taken below AGI federally; Georgia neither sees them nor adds them back |
The credits
| Credit | Figure | Refundable? | Note |
|---|---|---|---|
| Child tax credit (new, HB 136) | $250 per child under 6 | No | No carryforward; prorated for part-year and nonresidents. Form or line to come |
| Child and dependent care credit | 50% of the federal credit | No | IND-CR 202; raised from 30% for 2025 and later |
| Eligible itemizer credit | $300 per taxpayer | No | Line 19; residents who itemize for Georgia. $600 on a joint return |
| Low income credit | About $5 to $26 per exemption (verify) | No | Line 17; federal AGI under $20,000, not claimed as someone’s dependent; doubled at 65 |
| Credit for taxes paid to other states | Lesser of the other state’s tax or Georgia tax on the same income | No | Line 18; states and U.S. localities only, not foreign |
| Qualified caregiving expense credit | 10% of costs, up to $150 | No | IND-CR 204 |
| Qualified education expense credit | Up to $2,500 single / $5,000 joint | No | Schedule 2 code 125; a credit for donations to scholarship organizations, not for tuition. Statewide cap $150 million |
| Earned income credit | None | Georgia has no state EITC |
None of these credits pays money back. A household whose Georgia tax is already zero, which includes most retired couples at 65, gets nothing from any of them. Returns claiming Series 100 credits on Schedule 2 or 2B must be e-filed.
Worked example: what the age tiers are worth to one retired couple
A married couple with $34,000 of federally taxable Social Security, a $54,000 pension and $6,000 of interest in his name, and $36,000 of IRA withdrawals and $6,000 of dividends in hers. Federal AGI is $136,000. The only thing that changes across the three columns is their age.
| Both under 62 | Both 63 | Both 65 | |
|---|---|---|---|
| Federal AGI | $136,000 | $136,000 | $136,000 |
| Social Security subtraction | −$34,000 | −$34,000 | −$34,000 |
| Retirement exclusion, his ($60,000 of retirement income) | $0 | −$35,000 | −$60,000 |
| Retirement exclusion, hers ($42,000 of retirement income) | $0 | −$35,000 | −$42,000 |
| Georgia AGI | $102,000 | $32,000 | $0 |
| Standard deduction | −$30,000 | −$30,000 | −$30,000 (unused) |
| Georgia taxable income | $72,000 | $2,000 | $0 |
| Georgia tax at 4.99% | $3,593 | $100 | $0 |
The exclusion is per person and applies only to each spouse’s own income, which is why his $60,000 does not borrow from her unused room at 65. At 65 the couple could have another $58,000 of retirement income ($28,000 of unused exclusion plus the $30,000 standard deduction) before owing Georgia a dollar. Under 62 there is no break at all. Details in Georgia for retirees.
Paying it in
| Item | Figure | Note |
|---|---|---|
| Withholding rate, 2026 | 5.19% to May 10; 4.99% from May 11 | Employers switched at the signing of HB 463; the return is figured at 4.99% for the whole year, so early-2026 wages were over-withheld |
| Withholding certificate | Form G-4 | Georgia’s own form; the federal W-4 does not set Georgia withholding. G-4P for pensions |
| Estimated tax required when | Income not subject to withholding exceeds $1,000 | After deductions and exemptions. Form 500-ES or Georgia Tax Center |
| Safe harbor | Lesser of 100% of last year’s tax or 70% of this year’s | Not 90%; Georgia is more lenient than the IRS. Figured on Form 500 UET |
| Underpayment penalty | 9% a year | Prorated by days late |
| Late payment penalty | 0.5% a month | Late filing 5% a month; the two together cannot exceed 25% |
| Interest on unpaid tax | Prime rate plus 3% | 9.75% for calendar year 2026; adjusted each January |
Dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment, Form 500-ES |
| April 1, 2027 | County deadline to apply for homestead and senior property tax exemptions for 2027 (not on Form 500) |
| April 15, 2027 | Form 500 and payment due; first 2027 estimated payment; extension payment on Form IT-560 |
| June 15 and September 15, 2027 | Second and third 2027 estimated payments |
| October 15, 2027 | Extended due date for Form 500, automatic with a federal extension or on Form IT-303 |
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate and inheritance tax | None; Georgia has collected no estate tax since 2005 and has no inheritance or gift tax |
| State sales tax | 4%, plus county and city local option taxes; most of the state pays 7% or 8%, Atlanta 8.9% (verify current chart). Groceries exempt from the state 4% but not from local taxes |
| Standard homestead exemption | $2,000 off the 40% assessed value for county and school taxes, applied for at the county by April 1 |
| Senior homestead exemptions, state level | Age 65, an extra $4,000 off county taxes; age 62, up to $10,000 off school taxes; both with a $10,000 income test that ignores retirement income up to the Social Security maximum. County senior school-tax exemptions are usually worth far more |
| Assessed-value cap (HB 581) | Homestead assessments grow no faster than inflation from a base year; local opt-outs end and the cap is mandatory statewide from 2027 (SB 33) |
| Surplus refund (HB 1000), paid 2026 | $250 single / $375 head of household / $500 joint, capped at 2024 tax; none enacted for 2027 |
| Reciprocal states for wages | None |
What changed from 2025
- Rate: 5.19% to 4.99%.
- Standard deduction: $12,000 to $15,000 single, head of household and married filing separately; $24,000 to $30,000 married filing jointly.
- Dependent exemption: $4,000 to $5,000.
- New: $250 child tax credit per child under 6, nonrefundable.
- New: up to $1,750 of cash tips and up to $1,750 of overtime premium subtracted, 2026 through 2028.
- Conformity date moved to January 1, 2026; Georgia stays decoupled from bonus depreciation and the $40,000 SALT cap and did not adopt the federal tips, overtime, senior or car-loan deductions.
- Repealed as of January 1, 2026: telework, electric vehicle and charger, PPE manufacturer, port traffic and headquarters credits.
- Unchanged: retirement exclusions, Social Security subtraction, $300 itemizer credit, 50% dependent care credit, no EITC, no local income tax, no 500EZ.
Behind the scenes: why the 2027 column says “to come”
Georgia’s rate and deduction schedule is written as a ladder with a lock on each rung. HB 463 sets the next step, 4.865% and $15,375 / $30,750 / $5,125, but the step happens only in a year when three revenue tests are certified by December 1 of the prior year. The 2026 figures were not conditional; the legislature simply enacted them. The 2027 figures are, and until the Department announces the result of the December 1, 2026 certification, nobody can say which column applies. The one 2027 figure fixed in statute is the age-65 retirement exclusion, which rises to $70,000 regardless of the tests.
What to bring
- Last year’s Form 500, to compare line by line; every main figure moved
- Dates of birth for everyone on the return: the 62 and 65 tests for the retirement exclusion, the under-6 test for the child credit
- Every W-2 and 1099 with Georgia withholding, which ran at two rates in 2026
- For a tipped or hourly worker, the W-2 and a breakdown of cash tips and overtime premium
- Path2College 529 contribution statements, by beneficiary
- Estimated payment confirmations from Georgia Tax Center, with dates
- If itemizing federally, the Schedule A
Questions people ask
What is the Georgia income tax rate for 2026?
4.99% on Georgia taxable income, flat, for the whole year. It was 5.19% in 2025. A further cut to 4.865% for 2027 depends on revenue tests certified December 1, 2026.
What is the Georgia standard deduction for 2026?
$15,000 for single, head of household and married filing separately; $30,000 for married filing jointly. There is no personal exemption and no extra deduction for age or blindness. Dependents are $5,000 each.
How much retirement income can I exclude?
$35,000 per person at 62 to 64 or if permanently disabled, $65,000 per person at 65 and over, on top of Social Security, which is never taxed. A couple both 65 can shelter $130,000 of pensions, IRA withdrawals, interest, dividends, gains and rents, plus up to $5,000 of wages each.
Does Georgia have an earned income credit or a refundable child credit?
No EITC. The new $250 child credit for children under 6 is nonrefundable, so it can only reduce Georgia tax to zero.
Are tips and overtime tax-free in Georgia?
Up to $1,750 of each is, for 2026 through 2028. The rest is taxed at 4.99%. Georgia did not adopt the federal $25,000 and $12,500 deductions.
Is the safe harbor for estimated payments the same as federal?
No, it is easier. Pay the lesser of 100% of last year’s Georgia tax or 70% of this year’s in four timely installments and there is no penalty. Georgia has no 110% tier for higher incomes.
One rate, one deduction, one exemption, two age tiers
Know 4.99%, $15,000 or $30,000, $5,000 a dependent, and $35,000 or $65,000 a person at 62 or 65, and most of Georgia is in hand.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
Sources and where to check
- Georgia DOR, 2026 Employer’s Tax Guide, updated June 2026: 4.99%, $15,000 / $30,000, $5,000
- Georgia DOR, 2025 IT-511 booklet: 2025 figures, estimated tax, penalties and interest
- Georgia DOR, Retirement Income Exclusion
- Georgia House Ways and Means, 2026 Session Brief: HB 463 steps and triggers
- Georgia Society of CPAs: HB 1199 conformity summary
- Georgia DOR, Filing Georgia State Individual Income Tax Return: April 15, 2027 due date