Georgia Tax and CPA Services: State, County and City Taxes

Georgia moved from a graduated income tax to a single flat rate and has been lowering that rate, offers a generous income exclusion for retirees, and layers local sales taxes on top of a 4 percent state rate. The Atlanta area adds its own twists. This page covers what people who live, work or own a business in Georgia should know. We serve Georgia clients remotely from our Naperville, Illinois office.

Individual income tax

The Georgia Department of Revenue's 2025 booklet states that, effective January 1, 2025, the income tax rate is 5.19 percent, and that Form 500EZ has been discontinued, so all taxpayers use Form 500. Georgia has been lowering the rate in steps, so confirm the rate that applies to the year you are filing; the Department publishes it each year. Georgia starts from federal adjusted gross income and then applies its own adjustments, including a standard deduction that depends on filing status.

Retirement exclusion. Georgia exempts Social Security and Railroad Retirement benefits that appear in federal income. It also offers a retirement income exclusion. For taxpayers age 62 to 64, or younger but permanently disabled to the point that they cannot do gainful work, the maximum is $35,000. For taxpayers 65 and older it is $65,000. The exclusion is per person, with each spouse qualifying separately, and the date of birth is required on the return. Part-year residents and nonresidents must prorate the exclusion. Georgia also has a separate military retirement income exclusion.

Residents are taxed on income from all sources, and nonresidents on Georgia-source income, which includes wages for work done in the state. People who commute from Florida, Alabama or other neighboring states, remote workers who relocate and H-1B holders who change jobs across state lines should review part-year and nonresident filing. See multi-state tax.

Business taxes

Georgia taxes C corporations on net income, and partnerships and S corporations generally pass income to their owners, who report it on Form 500. Georgia has also offered an elective pass-through entity tax for owners who want to work around the federal limit on the state and local tax deduction; because the details change, confirm the current election rules with the Department of Revenue and see SALT deduction and property taxes. Businesses register through the Georgia Tax Center, and new businesses should also check requirements with the Secretary of State and with their city and county for local business licenses.

Sales and use tax

The state sales tax rate is 4 percent. In most cases, tax is due at the rate of the county where the customer takes delivery of the item, which adds local option sales taxes. If delivery is in the City of Atlanta, a city sales tax generally applies in addition to the state and county taxes. The Department updates its published sales and use tax rate chart each quarter.

Georgia's local layers have names that confuse newcomers:

• LOST and SPLOST: local option and special purpose local option sales taxes imposed by counties.
• MOST: the 1 percent municipal option sales tax in the City of Atlanta, which does not apply to motor vehicle sales.
• MARTA: a 1 percent transit tax in the Atlanta area, which Clayton County first imposed in March 2015.
• TSPLOST: regional and local transportation taxes, where the first regional TSPLOST on motor vehicles is imposed on only the first $5,000 of a sale.

The Department's own examples show how rates differ: it describes a generally applicable rate of 8 percent in Muscogee County (4 percent state plus four local taxes at 1 percent each) and 9 percent in Ware County, so always check the current chart. Because the rate depends on the delivery location, online sellers with Georgia customers should read the rate chart each quarter; see sales tax nexus and our sales tax service.

Payroll in Georgia

• Withholding: Georgia employers withhold state income tax and file through the Georgia Tax Center. See state income tax withholding.
• Unemployment insurance: the Georgia Department of Labor states that employers pay the entire cost of unemployment insurance; employees do not contribute. Registration, wage reports and payments are handled through the Department of Labor's employer portal. The Department sets the taxable wage base and your experience-based rate, so check your current rate notice. See state unemployment insurance.
• New hires and workers' compensation: employers also have new hire reporting and workers' compensation duties; see new hire reporting and workers' compensation basics.

Counties, cities and property tax

Georgia has 159 counties, and local taxes are driven largely by county decisions on sales tax and property tax. The Atlanta area spans Fulton and DeKalb counties, with Atlanta's own city taxes and the regional MARTA tax layered on top. Property tax is billed locally, and the Department of Revenue's Local Government Services division supports county digests and central assessment, so questions about a specific bill or exemption go to your county tax commissioner or assessor. For the Atlanta metro, see our Atlanta page.

How we can help

We prepare Georgia resident, part-year and nonresident returns, apply the age-based retirement exclusions, help sellers decode county and city sales taxes, and set up Georgia payroll accounts. If you receive a notice from the Georgia Department of Revenue, see state tax notices and representation. Contact us to begin; this page is general information.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.