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Georgia Taxes: What You Need to Know 

Understanding Georgia’s tax structure helps residents plan their finances better. Recent legislative changes are reshaping the tax landscape, offering potential savings for many Georgians. 

Federal, State and Local Tax Withholding 

Federal, State, and Local taxes are withheld from your paycheck to fund various government services. While federal income tax rates remain progressive (10% to 37%), Georgia is transitioning to a flat tax system. This shift aims to simplify tax calculations and potentially reduce the tax burden for many residents. 

FICA Taxes 

FICA taxes, covering Social Security and Medicare, are also deducted from your paycheck. These federal programs benefits retirees, the disabled, and children of deceased workers. In Georgia, you’ll also see deductions for state insurance taxes that fund programs like unemployment insurance. 

Pre-Tax Deductions 

Pre-tax deductions include contributions to retirement plans like 401(k)s, health insurance premiums, and flexible spending accounts (FSAs). By reducing your taxable income, these deductions can lower your overall tax burden. 

Here’s a breakdown of key tax information for Georgia: 

Georgia’s tax reform, initiated by HB 1437 and further accelerated by recent announcements, is bringing significant changes. The state is transitioning to a flat tax rate, which will decrease according to the following: 

This accelerated tax cut is expected to save Georgia taxpayers approximately $1.1 billion in 2024.  

Supporting this move, Governor Brian Kemp has called it “the largest tax cut in Georgia history,” estimating that an average Georgia family of four making $60,000 will save over $600 per year on their state taxes once fully implemented. 

The state’s fiscal conservatism has led to a robust Rainy-Day Fund and even allowed tax refunds in recent years. Governor Kemp’s administration has announced plans for additional income tax refunds and property tax relief, further easing the financial burden on Georgia residents. 

As Georgia continues to evolve its tax structure, residents can look forward to potential savings and simpler tax system. However, staying informed about these changes and how they might affect your financial situation is important. 

 Median Household Income in Georgia 

The income landscape of Georgia provides crucial context for evaluating your financial situation within the state. Let’s explore the latest income statistics and how they compare to national averages. 

Georgia’s income figures are slightly below the national average, but this should be considered alongside the state’s lower cost of living in many areas. Interestingly 10% of households in Georgia are classified as high-income, earning over $200,000 annually. 

The age of the householder significantly impacts median household income: 

It’s worth noting that income distribution varies significantly across Georgia. For instance, the wealthiest zip code in the state (30237) boasts an average household income of $322,047, more than triple the state average. 

Georgia Tax Brackets 2024 

Georgia’s tax landscape has undergone significant changes as they transitioned from a tiered system to a flat tax rate. Let’s explore how this shift impacts the taxpayers in the Peach State. 

In 2024, Georgia implemented a flat tax rate of 5.9%, a decrease from the initially planned 5.49%. This change is part of broader tax reform aimed at gradually reducing the tax rate to 4.99% by 2029, subject to certain fiscal conditions. Here’s the projected schedule for tax rate reductions: 

This flat tax system replaces the previous structure, which had six tax brackets ranging from 1% to 5.75%. This new system applies to all taxable income, regardless of filing status or income level. 

Georgia Income Tax Rates: Single Filers 

Georgia Income Tax Rates: Married Jointly or Head of Household 

Georgia Income Tax Rates: Married Filing Separately 

In addition to the income tax changes, Georgia has implemented other tax reforms: 

• Corporate Tax Alignment: The corporate tax rate is now aligned with the individual rate, promoting neutrality in business decisions. 

• Increased Dependent Exemption: The state tax deduction for dependents has increased from $3,000 to $4,000 per dependent. 

• Property Tax Relief: A constitutional amendment on the November ballot cap annual increases in property value assessments to the inflation rate. 

• Historic Home Preservation: Extended tax credits for rehabilitation projects of historic homes. 

Georgia allows countries and municipalities to levy additional taxes, which can vary by location. Always check with your local tax authorities or a tax professional for the most accurate and up-to-date information. 

Wrapping It Up 

As Georgia continues its transition to a flat tax system and implements various tax relief measures, staying informed about how these changes affect your paycheck is essential. Whether you’re a long-time resident or considering a move to the Peach State, our calculator can help you understand the impact of these tax reforms on your personal finances. 

Remember, while this calculator provides a solid estimate, tax situations can be complex and unique to each individual. For personalized advice, consider consulting with a tax professional who can guide you through the nuances of Georgia’s tax system and help you make the most of your hard-earned money.