Georgia Income Tax Explained: Tax Rates, Employer Obligations, and More

If you’re paying employees in Georgia, understanding the state’s payroll and tax requirements is essential to getting withholding right and staying compliant. While every US employer handles federal taxes and unemployment insurance (UI), Georgia adds its own set of state rules for income, UI, and sales tax.

What makes Georgia's income tax unique

Georgia’s payroll environment is shaped by its flat income tax. Employers also navigate a 4% state sales and use tax (with local add-ons that can push total rates up to 9%), a corporate income tax equal to the personal rate, and locally administered property taxes.

Georgia’s competitive rates and pro-business climate have helped fuel its steady business and population growth.

Learn more about how state income taxes vary in the US.

Georgia income tax overview

Georgia’s flat personal income tax is administered by the Georgia Department of Revenue (DOR). For the 2025 tax year, the rate will be 5.19% (effective July 1, 2025), down from 5.39% at the start of the year—part of a gradual phase-down toward 4.99%.

• Residents pay tax on all income
• Nonresidents pay only on income earned in Georgia

Employers must withhold using official state tables and the employee’s Form G-4 (Employee Withholding Allowance Certificate).

Other employer-related taxes

No Georgia counties or cities currently levy a local income tax.

See also: State Unemployment Insurance (SUI) Rates by State (2025)

Residency rules and filing status

Residency affects who pays Georgia income tax and how much:

• Residents: Taxed on all income
• Part-year residents: Taxed on income earned while domiciled in-state
• Nonresidents: Taxed only on Georgia-source income

Filing status—single, married filing jointly/separately, head of household, or qualifying surviving spouse—determines available deductions and credits.

Employers should update withholding promptly if an employee relocates or changes residency.

Georgia tax deductions and credits

Georgia offers standard deductions and key tax credits to ease the tax burden:

• Standard deduction (2024 tax year):

  • $24,000 for married filing jointly

  • $12,000 for all others

• Credits:

  • Child and Dependent Care Expense Credit (30% of the federal amount for 2025)

  • Low-Income Tax Credit for qualifying taxpayers

Employers should also account for federal deductions and other state obligations when managing payroll.

Filing and payment requirements

For individuals

• Form: Form 500 (Individual Income Tax Return)

• Deadline: April 15, 2026 (for 2025 tax year, unless DOR sets a different date)

• How to file: Via the Georgia Tax Center (GTC) online portal or by mail

For employers

• Register with both DOR (withholding) and GDOL (unemployment insurance)

• File quarterly using Form G-7 (Withholding Return) and annually using Form G-1003

• Report new hires within 10 days via the Georgia New Hire Reporting Center

• Maintain accurate wage and tax records for both state and federal audits

Key considerations for employers

To stay compliant in Georgia, employers should take a proactive approach to payroll accuracy and state tax obligations. Keep these key areas on your radar to maintain compliance and avoid costly adjustments.

• Payroll precision: Run regular payroll audits to confirm Georgia’s flat rate and G-4 filing statuses are applied correctly in your payroll system. Verify that updates to tax tables or filing forms are reflected in every pay cycle.
• Remote and multi-state workers: Track employee work locations continuously and update their tax setup as soon as they relocate or change their work arrangement. Register or deregister with Georgia tax authorities as needed to stay compliant.
• Business compliance: Review all state-level tax obligations quarterly—including UI, sales/use, corporate income, and property taxes—to avoid missed payments or filing gaps. Assign ownership for each tax type within your finance or payroll team.

See also: Understanding Georgia Employment and Labor Laws

Simplify Georgia payroll tax compliance with Deel

Georgia’s decreasing flat income tax rate adds to its appeal—but keeping up with rate changes and compliance filings can still get complex. Deel makes payroll simple.

With Deel Payroll - US, your team gets built-in compliance updates, automated calculations, and support from in-house payroll and legal experts. With Deel PEO, you get peace of mind knowing Deel handles payroll, HR, and benefits as your legal employer, so you can focus on growth, not paperwork.

Learn more about managing payroll taxes in Georgia or book a demo with a Deel expert to see how you can simplify the process.