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Residents of the Peach State are required to pay state taxes for individual and corporate income. However, there are some laws that assist taxpayers, like the Georgia State Income Tax Cut of 2022, along with other tax refunds.
If you’re filing taxes in Georgia, our team at BC Tax can help. We aim to lessen the complexity of tax processes. Our experts work hard to find tax relief plans that work for you.
The Georgia State Income Tax Cut of 2022
Brian Kemp, the Georgia governor, signed HB 1437 into law on April 26, 2022. This law gives Georgia residents a flat tax rate instead of the graduated personal income tax rate of past years. This new rate of 5.49% began January 1, 2024, and it is lower than the highest tier of the previous graduated tax rate.
Beyond switching to a flat income tax rate and lowering the tax rate for 2024, the law aims to continue reducing the tax rate each year until it reaches 4.99%. The current tax rate schedule says the tax rate will reach 4.99% in 2029. This income tax cut is the largest in Georgia’s history and will save many Georgia residents hundreds on their income taxes.
The Georgia Surplus Tax Refund
Beyond lowering the income tax rate, Georgia offers other state tax refunds and policies to save taxpayers money. The Georgia Surplus Tax Refund gives a one-time tax credit to taxpayers who filed returns for both 2021 and 2022. Georgia residents, part-year residents or nonresidents can receive this refund if they had tax liabilities in 2021.
This state of Georgia tax refund is a maximum of $250 for single or married filing separately. Heads of households can get up to $375 and married filing jointly can get up to $500.
Other Georgia Tax Information
The Georgia individual income tax rate for the 2024 tax year will be a flat rate of 5.49%. Any previous tax years have a bracketed system with six state income tax rates: 1%, 2%, 3%, 4%, 5% and 5.75%. Your rate will vary based on your taxable income and your filing status.
Georgia also has corporate income and net worth taxes. The taxation rate for corporate income tax is 5.75% of a corporation’s Georgia taxable net income. Corporations may need to pay a net worth tax if their net worth is $100,000 or more.
