Georgia State Income Tax Guide (2026)
Georgia has a state income tax that is calculated separately from your federal income tax. Your employer withholds state income tax from each paycheck based on your filing status, income, and withholding allowances. The state uses a progressive tax system where higher income is taxed at higher rates.
Last updated: January 6, 2026
- •Georgia has a state income tax calculated separately from federal tax. Your employer withholds state tax from each paycheck.
- •State tax rates and brackets differ from federal tax. Your state taxable income may differ from federal taxable income.
- •Understanding your state's tax structure helps you accurately calculate take-home pay and plan your finances.
How income tax works in Georgia
Georgia has a state income tax that is calculated separately from your federal income tax. Your employer withholds state income tax from each paycheck based on your filing status, income level, and the information you provide on your state withholding form.
Key Takeaway
Georgia has a state income tax that is calculated separately from your federal income tax. Your employer withholds state income tax from each paycheck based on your filing status, income level, and the information you provide on your state withholding form.
State income tax is calculated using progressive tax brackets, meaning different portions of your income are taxed at different rates. Your marginal state tax rate is the rate on your highest dollar of income, while your effective state tax rate is the average rate you pay on all your income.
The amount withheld depends on your gross pay, pay frequency, filing status, and withholding allowances. State tax is calculated on your taxable income after the standard deduction and other adjustments.
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State tax structure
Georgia uses a progressive tax system with multiple brackets. The tax rate increases as your income increases, but only the income within each bracket is taxed at that bracket's rate.
Georgia uses a progressive tax system with multiple brackets. The tax rate increases as your income increases, but only the income within each bracket is taxed at that bracket's rate. This means your effective state tax rate—the average rate you pay on all your income—is typically lower than your marginal rate.
The specific brackets and rates vary by filing status. Your effective state tax rate depends on your total income, filing status, and deductions. Use our calculator to see exactly how Georgia state tax affects your specific situation.
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Bonuses & supplemental wages in Georgia
Bonuses, commissions, and other supplemental wages are subject to the same state income tax rates as your regular wages. However, employers may use different withholding methods that can make bonuses appear to be taxed at a higher rate.
Learn More
In Georgia, bonuses are taxed at your regular state income tax rate. The withholding method your employer uses can make it seem like bonuses are taxed more heavily, but when you file your tax return, bonuses are taxed at your actual marginal rate.
If your employer uses the aggregate method, they add the bonus to your regular paycheck and calculate withholding as if you earn that amount every pay period. This can result in higher withholding because it assumes you're in a higher tax bracket.
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RSUs & equity compensation in Georgia
When restricted stock units (RSUs) vest, they are treated as ordinary income for both federal and state tax purposes. Your employer typically withholds federal and state income tax, plus Social Security and Medicare, at the time of vesting.
Planning Tip
In Georgia, the value of vested RSUs is subject to state income tax at your regular state tax rate. If you sell the shares immediately after vesting, you may have little to no capital gains. If you hold the shares and sell later, any appreciation is subject to capital gains tax at both the federal and state level.
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Common paycheck surprises in Georgia
Several situations can cause unexpected changes in your take-home pay in Georgia, including mid-year raises, multiple jobs, and overtime.
Several situations can cause unexpected changes in your take-home pay in Georgia:
- Mid-year raises: A raise mid-year can push you into a higher state and federal tax bracket, increasing your effective tax rate for the remainder of the year. This means more tax is withheld from each paycheck.
- Multiple jobs: If you work multiple jobs, each employer withholds as if that job is your only income. This can result in under-withholding, especially if you're in Georgia and state tax brackets are progressive.
- Overtime: Overtime pay is taxed at the same rate as regular pay, but higher gross pay means more tax withheld. The additional withholding may make it seem like overtime is taxed more heavily, but it's just more income being taxed at your regular rate.
How this affects your take-home pay
Georgia state income tax directly reduces your take-home pay. The amount depends on your income level, filing status, and the specific tax rates in Georgia.
Total Tax Burden
Georgia state income tax directly reduces your take-home pay. The amount depends on your income level, filing status, and the specific tax rates in Georgia. Combined with federal taxes, state tax can significantly impact your net pay.
To see exactly how Georgia state income tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.
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