Georgia enacted HB 463 in May 2026, reducing the flat income tax rate to 4.99% (retroactive to January 1, 2026). The bill also restructured the standard deduction to $12,000 for single filers and $24,000 for joint filers, increased the retirement income exclusion to $65,000 for age 62+, and created a state-level tips/overtime exclusion of up to $1,750. The state sales tax rate is 4.00%. Use the calculators below to estimate your Georgia tax liability for 2026.
Income Tax
Flat 4.99%
Sales Tax
State rate 4.00%
Capital Gains
Flat 4.99%
Supplemental Rate
4.99%
Georgia Income Tax 2026
Georgia levies a flat 4.99% income tax on all taxable income for TY2026 (HB 463). This replaced the prior graduated bracket schedule. The standard deduction is $12,000 for single filers and $24,000 for married filing jointly. Georgia also provides a $4,000 dependent exemption (increasing to $5,000 from 2027).
Georgia Grocery Tax
Georgia exempts groceries from the state sales tax. However, local jurisdictions may still impose local sales tax on grocery purchases. Whether you pay grocery tax depends on your city or county.
Georgia Sales Tax
Georgia's state sales tax rate is 4.00%. Local jurisdictions add their own rates, typically bringing the combined rate to 7-8%. Groceries are exempt from the state portion, but local sales tax may still apply to food purchases.
Georgia Retirement Tax
Georgia does not tax Social Security benefits. Residents age 62 and older qualify for a $65,000 retirement income exclusion per person (increasing to $70,000 from 2027 under HB 463). This exclusion covers pensions, 401(k) distributions, IRA withdrawals, and other qualifying retirement income.
Georgia has a flat income tax rate of 4.99% for TY2026, enacted by HB 463 (signed May 2026, retroactive to January 1, 2026). This is a reduction from the prior 5.39% rate. HB 463 sets a glide path toward an eventual 3.99% rate, with 0.125% annual reductions contingent on revenue triggers.
What is the Georgia standard deduction for 2026?
For TY2026, the Georgia standard deduction is $12,000 for single filers and $24,000 for married filing jointly. These amounts increase to $15,000 / $30,000 beginning January 1, 2027 under HB 463.
Does Georgia tax groceries?
No (at the state level). Georgia exempts groceries from the state sales tax. However, local jurisdictions may still impose local sales tax on grocery purchases.
Does Georgia tax retirement income?
Georgia does not tax Social Security benefits. Residents age 62 and older qualify for a $65,000 retirement income exclusion per person (increasing to $70,000 from 2027 under HB 463). This exclusion applies to pension income, 401(k) distributions, IRA withdrawals, and other qualifying retirement income.
Does Georgia have local income taxes?
No. Georgia does not impose local income taxes. However, local jurisdictions do levy sales taxes (typically 3-4% combined) and property taxes.
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