Georgia Income Tax Rate 2026: The 4.99% Flat Tax Explained

Tax year 2026 · Last updated September 25, 2026 · Sources listed at the end

Georgia’s income tax is a single flat rate of 4.99% for 2026, cut from 5.19% by a law signed in May 2026. Here is exactly how it is calculated, how the scheduled reductions work, and what changed mid-year for paychecks.

The short answer

Georgia taxes individual income at a flat 4.99% for tax year 2026. The rate applies to Georgia taxable income, which is your federal adjusted gross income minus a standard deduction of $15,000 (single, head of household, or married filing separately) or $30,000 (married filing jointly), and a $5,000 exemption for each dependent. There is no graduated schedule: the first taxable dollar and the last are taxed at the same 4.99%.

These figures come from House Bill 463, the Georgia Economic Growth and Tax Relief Act of 2026, which Governor Kemp signed on May 11, 2026. The Department of Revenue's 2026 withholding guide says the changes are retroactive to taxable years beginning on or after January 1, 2026 (DOR Employer’s Withholding Tax Guide, June 2026; Governor’s office).

How Georgia got to 4.99%

Before HB 463, Georgia law set the flat rate at 5.19% for taxable years beginning on or after January 1, 2025, with scheduled cuts of 0.10 percentage point a year until the rate reached 4.99%. HB 463 rewrote that section of the Code (O.C.G.A. § 48-7-20(a.1)): the rate became 4.99% for 2026 immediately, and the floor for future cuts dropped to 3.99%. The Governor's office described this as reaching a rate below 5% three years ahead of schedule.

The standard deduction rose too. For 2024 and 2025 it was $12,000 for single filers and $24,000 for married couples filing jointly (DOR standard deduction history). HB 463 raised it to $15,000 and $30,000 for 2026, and raised the dependent exemption from $4,000 to $5,000.

The scheduled path to 3.99%

Under the bill as passed, the rate falls by 0.125 percentage point each January 1 starting in 2027 until it reaches 3.99%. The standard deduction rises $375 a year (single) or $750 a year (joint) until it reaches $18,000 and $36,000, and the dependent exemption rises $125 a year until it reaches $6,000. The table shows that path if no year is delayed:

Each step is conditional. A scheduled reduction is pushed back one year for each year that, as of December 1, any of these is true: the Governor's revenue estimate for the next fiscal year is not at least 3% above the current year's estimate; the prior fiscal year's net revenue was not higher than each of the three years before it; or the Revenue Shortfall Reserve does not hold more than the revenue the next cut is projected to cost. The Office of Planning and Budget makes that call each December 1. Only 2026 is certain; later years are the maximum pace the law allows.

What the flat rate means in practice

Because the deduction comes off the top, your effective Georgia rate is always below 4.99%, and much lower at modest incomes. Here is the 2026 Georgia tax on wage income with the standard deduction and no dependents:

A single filer earning $60,000 owes ($60,000 − $15,000) × 4.99% = $2,245.50. Pre-tax 401(k) contributions and cafeteria-plan health premiums reduce Georgia taxable income as well, because Georgia starts from federal adjusted gross income.

Withholding during 2026

Because the law was signed partway through the year, the DOR told employers to keep withholding at 5.19% until the change took effect and allowed them to start withholding at 4.99% from May 11, 2026. The same instruction applies to bonuses. If your early-2026 paychecks were withheld at 5.19%, the extra is settled when you file your 2026 Georgia return. This site calculates current paychecks at 4.99%.

Other 2026 changes worth knowing

• Overtime and tips: for 2026 through 2028, up to $1,750 of qualified overtime pay (for full-time hourly employees) and up to $1,750 of cash tips can be excluded from Georgia taxable income. Georgia did not adopt the larger federal overtime and tip deductions (DOR Important Tax Updates).
• Retirement income: the exclusion for taxpayers 65 and older rises from $65,000 to $70,000 starting in 2027.
• One-time credit: the DOR lists a one-time tax credit of up to $500 for residents who paid taxes in 2024 and 2025.
• SALT cap: Georgia kept the $10,000 limit on the state and local tax deduction for itemizers rather than following the higher federal cap.

Is there a local income tax in Georgia?

No Georgia city or county income tax is withheld from paychecks. Georgia law (O.C.G.A. § 48-7-140) does allow a county to adopt a 1% local-option income tax by referendum, but the Association County Commissioners of Georgia reports that no county has used it (ACCG County Revenue Reference Guide), and the DOR's 2026 withholding guide and Form G-4 contain no local withholding. Local governments in Georgia rely on property and sales taxes instead.

Sources

1. Georgia HB 463 (2026), Georgia Economic Growth and Tax Relief Act of 2026, as passed
2. Office of the Governor, “Gov. Kemp Signs Legislation Lowering Taxes and Supporting Economic Growth” (May 11, 2026)
3. Georgia Department of Revenue, Employer’s Withholding Tax Guide 2026 (revised June 2026)
4. Georgia Department of Revenue, Important Tax Updates
5. Georgia Department of Revenue, Georgia Standard Deductions Increases
6. Georgia Form G-4, Employee’s Withholding Allowance Certificate (Rev. 06/03/26)
7. Association County Commissioners of Georgia, County Revenue Reference Guide

This guide explains general rules for estimating paycheck withholding. It is not tax or legal advice. See our disclaimer.