What Is Georgia’s State Income Tax Rate for 2024?
Understand Georgia's new flat income tax for 2024. Learn how the single rate applies and the key calculations needed to determine your actual state tax bill.
Georgia’s income tax system has changed for the 2024 tax year. The previous system of progressive tax brackets has been replaced by a single, uniform rate for all residents. This overhaul simplifies the tax calculation process and represents a significant policy change for the state.
Georgia’s 2024 Flat Income Tax Rate
For the 2024 tax year, Georgia has implemented a flat individual income tax rate of 5.39%. After all deductions and exemptions are applied, the remaining taxable income is taxed at this single rate. Under this model, every taxpayer applies the same percentage to their taxable earnings. For example, whether a person has $30,000 or $300,000 in taxable income, the 5.39% rate is applied uniformly.
Determining Your Georgia Taxable Income
The 5.39% tax rate is applied to your Georgia taxable income, not your total earnings. To calculate this figure, you begin with your federal Adjusted Gross Income (AGI) and subtract the state-specific standard deduction and any applicable exemptions. For the 2024 tax year, Georgia has increased its standard deduction amounts. Taxpayers who are single, head of household, or married filing separately can claim a $12,000 standard deduction, while those married and filing a joint return can claim $24,000.
After the standard deduction, you can reduce your taxable income with a $4,000 exemption for each qualifying dependent. Personal exemptions for the taxpayer and spouse have been eliminated under the new law. The final number after subtracting the standard deduction and all dependent exemptions is your Georgia taxable income.
Available State Tax Credits
After calculating your tax liability, you may be able to reduce the amount you owe with tax credits. A tax credit provides a dollar-for-dollar reduction of your tax bill, which is distinct from a deduction that only lowers your taxable income.
Georgia offers several tax credits to individuals. Common credits include the Child and Dependent Care Expense Credit and the Low-Income Tax Credit. Full-year residents who itemize deductions on their federal return may also be eligible for a Georgia Resident Itemizer Tax Credit of up to $300 per taxpayer.
Planned Future Tax Rate Reductions
State law outlines a path for future reductions in the flat tax rate, with the goal of reaching 4.99%. These reductions are not automatic and are contingent upon Georgia meeting specific economic and revenue-based triggers. The legislation requires the state’s economy to show consistent growth and for state revenues to remain healthy before any rate cuts can be implemented. If these conditions are met, the rate could reach the 4.99% target as early as 2028.