What Changes in Your Paycheck in Georgia
Your paycheck in Georgia shows a Georgia state income tax line item that grows progressively with income, starting at 1% for the first $1-$1. However, because the brackets are compressed at the bottom, most middle and high earners quickly reach the 5.75% rate on most of their income. For a $1 salary, you might see ~ $1 annually (~ $1 per biweekly paycheck) for state tax, reflecting that most income is taxed at 5.75%. Georgia paychecks only show state and federal tax deductions—no local income tax line items. The progressive brackets mean your state tax increases as you move through the low brackets, but most taxpayers reach the 5.75% rate quickly due to the compressed bracket structure.
Example State Tax in Georgia
What you'll pay in Georgia state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $2,703 | 5.4% |
| $75,000 | $4,140 | 5.5% |
| $100,000 | $5,578 | 5.6% |
| $150,000 | $8,453 | 5.6% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Is Georgia Better for You?
Georgia works well for:
Georgia works best for lower and middle-income earners (under ~ $1 for singles, $1 for couples) who benefit from the progressive brackets with very low starting rates (1% on the first $1-$1). At these income levels, effective state tax rates are 2%-4%, which can be competitive with or lower than flat-tax states Retirees also benefit from exemptions on Social Security and most retirement income for residents 62+, plus the low starting brackets help retirees with lower fixed incomes. Georgia is particularly attractive for those who can avoid reaching the 5.75% bracket on most of their income.
Georgia may not be ideal if:
Georgia is challenging for middle-high and high earners (~ $1+ for singles, $1+ for couples) because the compressed brackets mean most of their income is taxed at the top 5.75% rate. Someone earning $1 in Georgia pays an effective rate very close to 5.75% (~ $1 annually), while the same earner in a flat-tax state like Illinois would pay $1 (4.95% flat), and in Pennsylvania would pay $1 (3.07% flat, though Pennsylvania may have local taxes). If you're a high earner, flat-tax states or zero-tax states may be more favorable than Georgia's 5.75% top rate.
Key Facts That Affect Your Take-Home Pay
- Georgia uses a progressive income tax system with six brackets starting at just 1% for the first $1 of income (single) or $1 (married), escalating to a top rate of 5.75% for income above $1 (single) or $1 (married)—making Georgia one of the states with the lowest starting rates and a relatively modest top rate compared to high-tax progressive states.
- Georgia's progressive brackets are compressed at the bottom (meaning the first few brackets are very low dollar amounts), so most middle and high earners quickly reach the top 5.75% rate. For a $1 earner, almost all income is taxed at 5.75%, making the effective rate very close to the top bracket rate for most taxpayers.
- Georgia does not require local income tax payments, meaning no location-based variations in your paycheck. All Georgians have the same income tax structure—only the state progressive brackets apply.
- Georgia exempts Social Security income from state taxation for all retirees, and provides additional exemptions for retirement income (pensions, 401(k) withdrawals) for residents 62 and older, making the state attractive for retirees despite the progressive income tax structure. The low starting brackets also benefit retirees with lower fixed incomes.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay high rates in Georgia.' Reality: Georgia's progressive system starts at just 1% for the first $1-$1 of income, and the top rate is 5.75%—lower than many flat-tax states like Illinois (4.95%) or Michigan (4.25%) for high earners, but the compressed brackets mean most middle and high earners reach the 5.75% rate quickly. Someone earning $1 pays an effective rate very close to 5.75% (~ $1 annually), while the same earner in a flat-tax state like Illinois would pay $1 (4.95% flat).
Misconception: 'The brackets mean my tax is spread out across different rates.' Reality: Georgia's brackets are compressed at the bottom, meaning the first few brackets cover very small dollar amounts ($1-$1). For most taxpayers earning above $1-$1, virtually all income above the first bracket is taxed at 5.75%. A $1 earner pays 5.75% on ~ $1-$1 of their income, making their effective rate very close to the top bracket rate.
Misconception: 'No local taxes means Georgia is cheaper than other progressive states.' Reality: While Georgia avoids local income tax complications, the top 5.75% rate combined with sales taxes (7%-8.9% in many areas) and property taxes can still create a significant tax burden. A high earner in Georgia might pay 5.75% income tax, while a high earner in a flat-tax state like Illinois pays 4.95% income tax. Factor in all taxes (income, sales, property) when comparing states, not just income tax structure.
One Thing to Know
Georgia's brackets start at just 1% on the first $1-$1, which sounds great, but the compression means you hit 5.75% on almost everything by the time you're earning $1+. Many people see that 1% starting rate and assume they'll pay low taxes, not realizing how quickly the brackets compress.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Georgia tax laws.