What is the Georgia state income tax rate?

Georgia levies a flat state income tax of 5.39% on taxable income as of 2025. The state moved away from its previous six-bracket progressive system (which ranged from 1% to 5.75%) in 2024 when House Bill 1437 took effect, simplifying the calculation substantially. The flat rate is scheduled to drop further in coming years toward a target of 4.99%, provided that Georgia meets specified revenue benchmarks. The rate cuts have already cost the state roughly $1 billion in projected revenue per year, but lawmakers consider the trade-off worthwhile because Georgia now competes more aggressively with Florida and Tennessee for workers and businesses choosing where to relocate.

How much does a $25/hour worker take home in Georgia?

At $25/hour working 40 hours per week and filing single, your gross annual pay is $52,000. After federal income tax of approximately $4,290, Georgia state tax of approximately $1,510, Social Security of approximately $3,224, and Medicare of approximately $754, your annual take-home is roughly $42,222, which works out to about $1,624 per biweekly paycheck. By comparison, the same worker in Florida (no state tax) would keep an additional $1,510 per year, while a worker in South Carolina at the 6.2% top rate would owe slightly more in state tax depending on bracket placement.

When did Georgia switch to a flat tax?

Georgia officially transitioned from a six-bracket progressive income tax to a flat rate on January 1, 2024 under House Bill 1437, which Governor Brian Kemp signed in April 2022. The initial flat rate was 5.49%, and statutory triggers based on state revenue performance have already lowered the rate to 5.39% for 2025. The legislation includes additional automatic reductions of 0.10 percentage points per year contingent on the state hitting revenue and reserve targets, with a floor of 4.99%. The change made Georgia the 14th state to adopt a flat individual income tax structure and was framed by supporters as both a simplification measure and a competitive response to Florida and Tennessee, neither of which taxes wages.

What is the Georgia standard deduction?

Georgia's standard deduction is $12,000 for single filers, $24,000 for married filing jointly, and $18,500 for head of household. These amounts are notably below the federal standard deduction of $15,000 single and $30,000 married, which means more of your income is subject to Georgia state tax than to federal tax. Georgia also allows personal exemptions of $4,000 for the taxpayer (and spouse) plus $4,000 per dependent, which further reduce taxable income. Workers who itemize on the federal return may itemize on the Georgia return as well, though most taxpayers find the standard deduction more advantageous.

Does Atlanta have a city income tax?

No. Atlanta does not impose a local income tax on wages, and no Georgia city or county levies a payroll income tax. This is a notable advantage compared to cities like New York City, Philadelphia, or Cleveland, where local income taxes add 2% to 4% on top of state rates. Georgia's state-only income tax keeps the paycheck calculation simple regardless of whether you work in Atlanta, Savannah, Augusta, Macon, or Columbus. Local revenue in Georgia comes primarily from property taxes (averaging about 0.81% of assessed value) and a 4% state sales tax that local jurisdictions can supplement up to roughly 8% combined.

How does Georgia compare to Florida for take-home pay?

Florida workers take home roughly $1,500 to $5,000 more per year than identical Georgia workers because Florida has no state income tax while Georgia charges 5.39%. The dollar gap grows with income: at $40,000 you save about $1,510 per year by living in Florida, at $80,000 you save about $3,665, and at $150,000 you save about $7,440. However, this is offset partially by housing costs that average about 18% lower in Georgia, particularly outside metro Atlanta, and by Georgia's lower car insurance and gas prices. Many remote workers and retirees compare these calculators carefully when deciding between Jacksonville and Savannah or between Tampa and Atlanta.

What is the Georgia minimum wage in 2026?

Georgia's state minimum wage is $5.15 per hour, one of the lowest statutory rates in the country, but the federal minimum wage of $7.25 applies to nearly all Georgia workers because federal law preempts the lower state floor. The state has not raised its own minimum wage since 2001. Despite the low statutory floor, the average Georgia hourly wage across all occupations is approximately $26 per hour, with healthcare, technology, and logistics workers in metro Atlanta earning well above the median. Workers earning the federal minimum of $7.25 take home essentially all of their pay because their $15,080 annual gross falls below the $15,000 federal standard deduction plus the $12,000 Georgia standard deduction, eliminating most income tax.

Georgia Paycheck Calculator (Hourly) — Free Take-Home Pay Estimator

How the Georgia Paycheck Calculator Works

This Georgia paycheck calculator hourly tool computes your take-home pay by subtracting federal income tax, Georgia state income tax at the flat 5.39% rate, and FICA (Social Security and Medicare) from your gross earnings. Because Georgia uses a flat tax, the state portion is much simpler to compute than in progressive-bracket states like California or New York.

The core formula:

Take-Home = Gross - Federal Tax - GA State Tax - Social Security - Medicare

P_{net} = P_{gross} - T_{fed} - T_{GA} - T_{SS} - T_{Med}

Annual gross pay equals your hourly wage multiplied by hours per week multiplied by 52 weeks. To convert your hourly rate to an annualized figure or vice versa, use our salary calculator. Federal income tax is calculated using the 2026 IRS brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) applied progressively to your taxable income, which is gross pay minus the federal standard deduction ($15,000 single, $30,000 married, $22,500 head of household) and any pre-tax retirement contributions. Georgia state tax is the simpler half of the calculation: take your gross income, subtract Georgia's $12,000 single (or $24,000 married, $18,500 head of household) standard deduction, multiply by 5.39%, and that's your annual Georgia liability. Social Security applies a flat 6.2% on wages up to $176,100, and Medicare applies 1.45% on all wages with an extra 0.9% surcharge above $200,000 single or $250,000 married.

Georgia Hourly Paycheck Tax Breakdown

Georgia switched from a six-bracket progressive income tax to a flat 5.39% rate effective for the 2025 tax year. The previous structure topped out at 5.75% on income above $7,000 of taxable income, so the new flat rate is slightly lower for most middle-income earners and notably higher for the lowest-income Georgia workers, who previously paid 1% on their first $750 of taxable income. The state has built in statutory triggers that automatically reduce the rate further by 0.10 percentage points per year if state revenue and reserve fund balances meet specified targets, with a long-run floor of 4.99%. Georgia became the 14th US state to adopt a flat individual income tax when HB 1437 took effect.

Compared to its neighbors, Georgia sits in the middle of the regional tax landscape. Florida charges 0% on wages and Tennessee also charges 0%, which gives both states a clear paycheck advantage for workers who can choose where to live. South Carolina runs a progressive system from 0% to 6.2%, meaning a high-earning South Carolina worker actually owes more state tax than a Georgian, while a low-earning South Carolinian owes less. North Carolina applies a flat 4.5%, lower than Georgia's 5.39%, which has prompted some Atlanta-area employers to consider Charlotte or Raleigh expansions. Alabama uses a 2% to 5% progressive structure with a very low top-bracket threshold, so most Alabama workers effectively pay close to 5% on the bulk of their income, putting Alabama and Georgia roughly on par.

The 5.39% flat rate means a worker earning $50,000 in Georgia taxable income owes about $2,695 in state tax, while a worker earning $100,000 owes about $5,390. Because the rate is flat, doubling your income exactly doubles your state tax liability, unlike in California or Hawaii where higher earners face dramatically higher marginal rates. This simplicity makes Georgia attractive to remote workers and high earners weighing relocation: a $200,000 earner pays $10,780 in Georgia state tax versus over $18,000 in California at the same income.

Your Georgia paycheck deductions come from four sources:

Federal income tax: Progressive brackets based on filing status; see our income tax calculator for a full federal estimate.
Georgia state income tax: Flat 5.39% on taxable income (gross minus Georgia standard deduction of $12,000 single, $24,000 married, $18,500 head of household).
Social Security: 6.2% on wages up to $176,100.
Medicare: 1.45% on all wages, plus 0.9% surtax above $200,000 single or $250,000 married.

Variable Definitions

Hourly Wage: Your gross pay per hour before deductions. Georgia's state minimum is $5.15, but federal law of $7.25 applies. Common Atlanta occupations span a wide range: a registered nurse at Piedmont or Emory averages around $40 per hour, a delivery driver for UPS at the Atlanta hub earns about $25 per hour, a software engineer at one of the city's tech firms averages roughly $55 per hour, and a hospitality worker on the Buckhead strip might earn $14 to $18 per hour plus tips. Each pay rate corresponds to a different federal tax bracket placement, but all face the same 5.39% Georgia state rate.

Hours per Week: Total weekly hours, typically 40 for full-time. Georgia follows federal Fair Labor Standards Act overtime rules requiring 1.5x pay for hours above 40 per week for non-exempt workers. The state has no daily overtime requirement (unlike California), so a 12-hour shift only triggers overtime if your total weekly hours exceed 40.

Pay Frequency: How often you receive a paycheck. Weekly = 52 paychecks, biweekly = 26, semi-monthly = 24, monthly = 12. Annual totals do not change with frequency, but per-period amounts do. Most Georgia employers, including major employers like Delta, Home Depot, and Coca-Cola, pay biweekly.

Filing Status: Determines both federal and Georgia standard deductions and the federal bracket thresholds. Single uses Georgia's $12,000 standard deduction; married filing jointly uses $24,000; head of household uses $18,500. A married couple earning $80,000 combined saves about $647 in Georgia state tax compared to two single filers each earning $40,000 because of the doubled standard deduction.

Pre-Tax Deduction: Percentage of gross pay contributed to 401(k), 403(b), HSA, or similar pre-tax accounts. These reduce both federal and Georgia taxable income. A worker earning $60,000 who contributes 6% ($3,600) saves about $194 in Georgia state tax and $432 in federal tax in the 12% bracket, for total tax-deferred savings of $626 on the contribution.

Worked Example 1: Georgia Hourly Paycheck at $20/Hour

A single filer earning $20/hour, working 40 hours/week, biweekly pay, with no pre-tax deductions:

Annual gross: $20 x 40 x 52 = $41,600
Federal taxable: $41,600 - $15,000 (federal std deduction) = $26,600
Federal tax: ($11,925 x 10%) + ($14,675 x 12%) = $1,192.50 + $1,761.00 = $2,953.50
Georgia taxable: $41,600 - $12,000 (GA std deduction) = $29,600
Georgia state tax: $29,600 x 5.39% = $1,595.44
Social Security: $41,600 x 6.2% = $2,579.20
Medicare: $41,600 x 1.45% = $603.20
Total deductions: $2,953.50 + $1,595.44 + $2,579.20 + $603.20 = $7,731.34
Annual take-home: $41,600 - $7,731.34 = $33,868.66
Biweekly take-home: $33,868.66 / 26 = $1,302.64

Worked Example 2: Georgia Hourly Paycheck at $45/Hour

A single filer earning $45/hour, working 40 hours/week, biweekly pay, with 8% 401(k) contribution:

Annual gross: $45 x 40 x 52 = $93,600
Pre-tax 401(k): $93,600 x 8% = $7,488
Adjusted gross: $93,600 - $7,488 = $86,112
Federal taxable: $86,112 - $15,000 = $71,112
Federal tax: ($11,925 x 10%) + ($36,550 x 12%) + ($22,637 x 22%) = $1,192.50 + $4,386.00 + $4,980.14 = $10,558.64
Georgia taxable: $86,112 - $12,000 = $74,112
Georgia state tax: $74,112 x 5.39% = $3,994.64
Social Security: $86,112 x 6.2% = $5,338.94
Medicare: $86,112 x 1.45% = $1,248.62
Total deductions: $7,488 + $10,558.64 + $3,994.64 + $5,338.94 + $1,248.62 = $28,628.84
Annual take-home: $93,600 - $28,628.84 = $64,971.16
Biweekly take-home: $64,971.16 / 26 = $2,498.89

This worker keeps about 69% of gross pay after all federal, state, and FICA taxes plus their 401(k) contribution, which is preserved for retirement rather than spent. The Georgia portion accounts for 4.3% of gross income, illustrating how the flat 5.39% rate translates to a slightly lower effective rate when the standard deduction and pre-tax contributions are factored in.

Edge Cases and Advanced Scenarios

Georgia retirement income exclusion: Georgia offers an exceptionally generous retirement income exclusion of up to $35,000 for taxpayers aged 62-64 and up to $65,000 for taxpayers aged 65 and older. This exclusion applies to pension income, 401(k) and IRA withdrawals, interest, dividends, and rental income, but not to wages from employment. Workers approaching retirement in Georgia can essentially eliminate state tax on their retirement income, making Georgia far more attractive than many other states for retirees.

Multi-state remote workers and the Georgia nexus rule: Georgia taxes residents on worldwide income but only taxes nonresidents on Georgia-source income. A remote worker who lives in Tennessee but works for an Atlanta-based employer generally owes no Georgia tax because the work is performed in Tennessee, even though the paycheck originates from Georgia. Conversely, a Georgia resident working remotely for a Florida employer still owes the full 5.39% on those wages. Establishing residency requires more than just a mailing address: the state looks at voter registration, vehicle registration, where dependents attend school, and where the bulk of the year is spent.

Georgia's scheduled rate reductions: Under current law, Georgia's flat rate could drop from 5.39% to 5.29% in 2026, 5.19% in 2027, 5.09% in 2028, and 4.99% in 2029, contingent on revenue triggers being met each year. If you are estimating multiple years of paycheck income or evaluating a long-term offer, factor in the likelihood (though not the certainty) of these reductions. A worker earning $80,000 would save approximately $320 per year for every 0.10 percentage point reduction in the rate.

What to Do with Your Georgia Paycheck Result

Compare your calculated take-home pay to your actual paycheck stub. Discrepancies often come from local benefits like health insurance, dental, vision, or commuter benefits that this calculator does not include.
If you are considering a move to or from Florida, Tennessee, or another no-tax state, multiply your Georgia state tax line by the number of years you expect to live in Georgia to see the lifetime cost difference.
Maximize your 401(k) contribution to reduce Georgia tax. Every $1,000 in pre-tax contributions saves $53.90 in Georgia state tax plus your federal bracket rate.
Use our federal income tax percentage calculator to check your effective federal rate and compare it to Georgia's effective state rate. Most Georgia workers find their effective state rate is in the 3.5% to 4.8% range after deductions.

Related Calculators

Florida Paycheck Calculator (Hourly) — compare Georgia to no-tax Florida for relocation analysis.
Alabama Paycheck Calculator (Hourly) — neighboring state with similar effective rates.
Salary Calculator — convert between hourly and annual pay.
Income Tax Calculator — estimate your total federal income tax liability.
Federal Income Tax Percentage Calculator — find your effective federal tax rate.
Paycheck Calculator by State — compare take-home pay across all 50 states and DC.

Georgia Paycheck Calculator (Hourly)