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Georgia State Tax

Georgia State Tax Georgia State Tax

There are a number of taxes applicable to the state of Georgia, which includes a state sales tax, income tax, and other taxes.

Georgia state sales tax – 4%, food and drugs exempt. Localities in Georgia are allowed to subject consumers to additional sales tax. 

Georgia personal income tax 

- Georgia uses a graduated tax system, where income of $0 - $750 is taxed at 1%, $750 – $2,250 is taxed at 2%, with the highest tax bracket paying 6% for any income over $7,000
- Tax returns are due on April 15
- Every county in Georgia requires taxes be paid for property ownership, motor vehicle ownership, real estate transfers, and document recording.  The tax rates vary by each county.  

Georgia property taxes

- Fund local governments but approved by state
-Property tax rates are determined by each county individually
-Average property tax is $40 per $1000 assessed property value

Georgia excise taxes

Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes. 

- Funds health programs and other related activities
-$.50 tax on cigarettes
-$1.01 tax per gallon of liquor

Georgia inheritance tax 

Georgia does not have an inheritance tax, but does have an estate tax for decedents' estates with a death date prior to January 1, 2005 which is based on federal estate tax law.  It is not paid by the individual inheriting the assets, but rather is paid by the estate before any of the assets are distributed to the heirs.  Georgia's estate tax relies on  the amount allowable as a credit for state death taxes as shown on the federal estate tax return (Form 706). The amount paid to Georgia is a direct credit against the federal estate tax. 

Georgia payroll taxes

State Disability Insurance – none
State Unemployment Insurance - .03% - 7.29%

Exemptions

Certain exemptions for

-Military personnel and veterans
-Persons age 65 and older
-Persons suffering from certain disabilities
There are no child tax credit exemptions, other than requiring a higher income threshold for families with children. 

Taxable income

- Wages
- Salaries
- Commissions
- Stock Gains
- Dividends
- Royalties income
- Rental income
- Business income
- Inheritance
- Pensions
- Annuities
- Partnership/shareholder income
- Gain from sale of property

Corporate income tax - 6%

Misc

Georgia allows counties and regions to set individual sales taxes for their area.  Therefore, some areas of Georgia have low sales tax of 4% while some areas may have sales tax of as high as 10%

Military members who are legal residents are taxed using federal income tax rules. Any nonresident military members receiving nonmilitary income from a Georgia source must file in the state. For those 62 years or older, up to $15,000 of military retired pay may be excluded and permanently and totally disabled veterans receive the same.

Many county taxes are collected at the end of the calendar year in December.  

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