Tax policy in Georgia

in Georgia

Fiscal Budgets Georgia state budget and finances Tax policy in Georgia Finance Financial regulation in Georgia Pensions Public pensions in Georgia Pension health in Georgia Civil liberties Affirmative action in Georgia Campaign finance requirements in Georgia Campaign finance requirements for Georgia ballot measures Nonprofit regulation in Georgia Education Charter schools in Georgia Higher education in Georgia Public education in Georgia School choice in Georgia Elections Ballot access Ballot access requirements for political candidates in Georgia Ballot access requirements for political parties in Georgia Political parties in Georgia Ballot access requirements for presidential candidates in Georgia Redistricting in Georgia Voting in Georgia Energy and Environment Energy policy in Georgia Fracking in Georgia Oil and gas extraction on federal land in Georgia Endangered species in Georgia Environmental policy in Georgia Healthcare Healthcare policy in Georgia Medicaid spending in Georgia Effect of the Affordable Care Act in Georgia Immigration Immigration in Georgia

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Tax policy in Georgia

Tax rates in 2017

Personal income tax: 1% to 6%

State sales tax: 4.00%

Corporate income tax: 6.00%

Tax revenues in 2016

Total tax collections: $21.45 billion

Tax collections per capita: $2,081

Total state expenditures • State debt • Georgia state budget and finances

Georgia generates the bulk of its tax revenue by levying a personal income tax and a sales tax. The state derives its constitutional authority to tax from Article VII of the state constitution.^[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.^[3]

Tax rates

Personal income tax

See also: Personal income tax

Georgia utilized a personal income tax rate ranging from 1 percent to 6 percent in 2017. An individual's tax liability varies according to his or her tax bracket. A tax bracket is the income range to which a tax rate applies.^[4]

The table below summarizes personal income tax rates for Georgia and neighboring states in 2017.^[4]

Personal exemptions

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. ^[5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for Georgia and its neighboring states as reported by the Tax Policy Center are reported in the chart below.^[6]

Capital gains tax

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. ^[7][8][9]

The table below summarizes uppermost capital gains tax rates for Georgia and neighboring states in 2015.

Sales tax

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

Georgia's state sales tax was 4.00% percent in 2017. The average local tax was about 3.00% percent, meaning that the average combined sales tax was about 7.00% percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for Georgia and its neighboring states.^[10]

The table below summarizes sales tax rates for Georgia and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).^[11]

Excise taxes

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Georgia and neighboring states.^{[12][13][14][15]}

Corporate income tax

See also: Corporate income tax

Georgia levies a corporate income tax rate of 6 percent. The table below compares the corporate income tax rates of some of its neighboring states.^[16][17]

Property tax

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.^{[18][19][20] [18][19]}

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in Georgia and neighboring states.^[18]

The table below lists per capita state and local property tax collections for Georgia and neighboring states for fiscal year 2013.^[21]

Estate and inheritance taxes

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.^[22][23][24]

Georgia does not levy an estate tax, although residents are liable for the federal estate tax. The table below summarizes the estate tax rates for Georgia and neighboring states in 2016.^[24]

Tax revenues

See also: Georgia state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 53.2 percent of Georgia's total state tax collections came from income taxes.^[25]

Tax ballot measures

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

See also: Taxes on the ballot and List of Georgia ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in Georgia.

1. Georgia Education Taxes for Redevelopment, Amendment 2 (2008)
2. Georgia Tax Exemptions for Agricultural Property, Referendum A (1998)
3. Georgia Homestead Tax Exemptions, Referendum B (1998)
4. Georgia Tax Exemptions for Religious Organizations, Referendum C (1998)
5. Georgia Tax Exemptions for Veterans, Referendum D (1998)
6. Georgia Tax Exemptions for Prisoners of War, Referendum E (1998)
7. Georgia Sales Tax Increase to Fund Transportation Projects, Referendum 1 (July 2012)
8. Georgia Farm Tax Exemptions, Referendum A (2006)
9. Georgia Tax Exemption for Historic Military Aircraft, Referendum B (2006)
10. Georgia Charitable Institutions Tax Exemptions, Referendum C (2006)
11. Georgia Elderly Homestead Tax Exemptions, Referendum D (2006)
12. Georgia Surviving Spouse Tax Exemptions, Referendum E (2006)
13. Georgia Homestead Freeze Exemptions, Referendum F (2006)
14. Georgia Tax Relief for Homeowners, Amendment 2 (2000)
15. Georgia Tax Rates for Hazardous Waste Properties, Amendment 4 (2002)
16. Georgia Tax Rates for Commercial Dockside Facilities, Amendment 5 (2002)
17. Georgia Classification of Marine Vessels, Amendment 6 (2000)
18. Georgia Question C (2002)
19. Georgia Tax Exemptions for Religious Groups, Referendum A (1996)
20. Georgia Income Limit for Homestead Exemptions, Referendum A (2002)
21. Georgia Tax Exemptions for Fraternal Organizations, Referendum B (1996)
22. Georgia Property Tax Exemptions, Referendum C (2002)
23. Georgia Tax Exemptions for Commercial Fishing Vessels, Referendum D (2002)
24. Georgia Tax Exemptions for Personal Property, Referendum E (2002)
25. Georgia Sales Tax for Schools, Amendment 2 (1996)
26. Georgia Question B (2002)
27. Georgia Tax Valuations for Residential Developments, Amendment 2 (2002)
28. Georgia Business Inventory Exemption, Referendum A (2010)
29. Georgia Forest Preservation, Amendment 1 (2008)
30. Georgia Tax Incentives for Property Redevelopment, Amendment 3 (2002)
31. Georgia Intangible Tax Repeal, Amendment 1 (1996)
32. Georgia Tax Exemptions for Farm Equipment, Referendum A (2000)
33. Georgia Homestead Exemptions for Spouses of Veterans, Referendum C (2000)
34. Georgia Tax Exemptions for Elks Lodges, Referendum D (2000)
35. Georgia Tax Exemptions for Manual Laborers, Referendum B (2000)
36. Georgia Private College Buildings Tax Exemption, Referendum 1 (2014)
37. Georgia Income Tax Rate Cap, Amendment A (2014)
38. Georgia Industrial Tax Exemptions, Amendment 4 (1924)
39. Georgia Tax Office Consolidation, Amendment 5 (1924)
40. Georgia Taxes for Education, Amendment 7 (1926)
41. Georgia Fulton County Taxes for Pensions, Amendment 3 (1930)
42. Georgia Income Tax, Amendment 4 (1930)
43. Georgia Flood Control Tax Exemptions, Amendment 6 (1930)
44. Georgia Pierce County Taxes for Schools, Amendment 8 (1930)
45. Georgia County Taxes and Bonds, Amendment 9 (1930)
46. Georgia Poll Tax, Amendment 2 (1932)
47. Georgia Property Tax Classification, Amendment 4 (1932)
48. Georgia Beer Licensing, Referendum 2 (May 1935)
49. Georgia Property Tax, Amendment 1 (1936)
50. Georgia Brantley County School Tax, Amendment 5 (1938)
51. Georgia Cobb County Fire Districts, Amendment 6 (1938)
52. Georgia Taxes for Conservation, Amendment 10 (1938)
53. Georgia Floyd County School Tax, Amendment 11 (1938)
54. Georgia County Authority to Levy Taxes, Amendment 15 (1938)
55. Georgia City of Fitzgerald Taxes, Amendment 15 (June 1939)
56. Georgia City of Macon Tax Exemptions, Amendment 17 (June 1941)
57. Georgia City of Macon Tax, Amendment 27 (June 1941)
58. Georgia Chatham County School Tax, Amendment 42 (June 1941)
59. Georgia Tax Exemptions for Electric Corporations, Amendment 54 (June 1941)
60. Georgia Irwin County Taxes, Amendment 3 (August 1945)
61. Georgia Floyd County Taxes, Amendment 6 (August 1945)
62. Georgia Fulton County License Tax, Amendment 7 (August 1945)
63. Georgia Fulton County Educational Tax, Amendment 10 (August 1945)
64. Georgia Chatham County School Tax, Amendment 11 (August 1945)
65. Georgia DeKalb County Tax, Amendment 12 (August 1945)
66. Georgia Consolidation of Taxes, Amendment 1 (April 1949)
67. Georgia Chatham County Education Tax, Amendment 11 (1950)
68. Georgia DeKalb County Taxes, Amendment 17 (1950)
69. Georgia Fulton County Tax Collection, Amendment 22 (1950)
70. Georgia City of Atlanta Tax Exemptions, Amendment 24 (1950)
71. Georgia Fulton County Tax Exemptions, Amendment 26 (1950)
72. Georgia Property Taxes, Amendment 3 (1952)
73. Georgia Property Tax Exemptions, Amendment 7 (1952)
74. Georgia Fulton County Tax Commissioner, Amendment 14 (1952)
75. Georgia Cobb County Fire Prevention Tax, Amendment 16 (1952)
76. Georgia Fulton County Tax Collection, Amendment 18 (1952)
77. Georgia Property Assessment, Amendment 20 (1952)
78. Georgia Glynn County Taxes, Amendment 41 (1952)
79. Georgia Chatham County Licensing Tax, Amendment 43 (1952)
80. Georgia Property Tax Exemptions, Amendment 3 (1954)
81. Georgia Taxes for Pensions, Amendment 5 (1954)
82. Georgia County Education Taxes, Amendment 7 (1954)
83. Georgia DeKalb County Homestead Tax, Amendment 27 (1954)
84. Georgia Fulton County Homestead Tax, Amendment 32 (1954)
85. Georgia Richmond County Board of Tax Assessors, Amendment 50 (1956)
86. Georgia Homestead Exemptions for Veterans, Amendment 1 (1958)
87. Georgia County School Lunch Tax, Amendment 5 (1958)
88. Georgia Tax for Peace Officer Retirement, Amendment 12 (1958)
89. Georgia State School Lunch Tax, Amendment 14 (1958)
90. Georgia Pension Tax, Amendment 15 (1958)
91. Georgia Property Tax Exemptions, Amendment 16 (1958)
92. Georgia Fuel Tax for Highways, Amendment 1 (1960)
93. Georgia Education Tax Levy Limits, Amendment 5 (1960)
94. Georgia Marriage License Levy, Amendment 12 (1960)
95. Georgia Taxes for Public Transportation, Amendment 9 (1962)
96. Georgia Taxes for School Lunches, Amendment 13 (1962)
97. Georgia Motor Vehicle Taxation, Amendment 8 (1964)
98. Georgia Homestead Exemption, Amendment 9 (1964)
99. Georgia County License Fees, Amendment 11 (1964)
100. Georgia Homestead Exemptions for Veterans, Amendment 12 (1964)
101. Georgia Vidalia Development Authority, Amendment 13 (1964)
102. Georgia Personal Property Tax Exemptions, Amendment 14 (1964)
103. Georgia Tax Exemptions for Pollution Reduction Facilities, Amendment 7 (1966)
104. Georgia Taxes for Public Transportation, Amendment 14 (1966)
105. Georgia Homestead Exemptions for Veterans, Amendment 9 (1968)
106. Georgia Homestead Exemptions for Seniors, Amendment 11 (1968)
107. Georgia Property Tax Exemptions, Amendment 3 (1970)
108. Georgia Homestead Exemptions for Veterans, Amendment 4 (1970)
109. Georgia Tax Exemptions for Religious Organizations, Amendment 6 (1970)
110. Georgia Homestead Tax Exemptions, Amendment 7 (1970)
111. Georgia Tax Exemptions for Healthcare Facilities, Amendment 8 (1970)
112. Georgia Tax Exemptions for Water and Sewage Facilities, Amendment 9 (1970)
113. Georgia Property Taxes on Inventory, Amendment 11 (1970)
114. Georgia Tax Exemptions for Peanuts, Amendment 13 (1970)
115. Georgia Tax Exemptions for Hospitals, Amendment 10 (1972)
116. Georgia Taxes for School Personnel and Facilities, Amendment 12 (1972)
117. Georgia Vehicle Tax Exemptions for Veterans, Amendment 14 (1972)
118. Georgia Tax Exemptions for Seniors, Amendment 16 (1972)
119. Georgia Independent School District Tax Exemptions, Amendment 17 (1972)
120. Georgia County School District Tax Exemptions, Amendment 18 (1972)
121. Georgia Tax Exemptions for Agricultural Products, Amendment 6 (1974)
122. Georgia Tax Exemptions for Seniors, Amendment 13 (1974)
123. Georgia Inventory Tax Exemptions, Amendment 5 (1976)
124. Georgia Solar Energy Tax Exemptions, Amendment 6 (1976)
125. Georgia Definition of Income for Tax Exemptions, Amendment 18 (1976)
126. Georgia Mobile Home Classification, Amendment 19 (1976)
127. Georgia Tax Exemptions for Senior Residence Homes, Amendment 22 (1976)
128. Georgia County Taxes, Amendment 7 (1978)
129. Georgia Motor Vehicle Tax Exemptions for Veterans, Amendment 8 (1978)
130. Georgia Property Tax Exemptions, Amendment 11 (1978)
131. Georgia Livestock Tax Exemptions, Amendment 12 (1978)
132. Georgia Property Tax Exemptions for Nonprofits, Amendment 17 (1978)
133. Georgia Homestead Exemptions for Veterans, Amendment 18 (1978)
134. Georgia County Tax Collection, Amendment 32 (1978)
135. Georgia Definition of Income for Tax Exemptions, Amendment 34 (1978)
136. Georgia Property Classification, Amendment 1 (1980)
137. Georgia Taxes for School Uniforms, Amendment 4 (1980)
138. Georgia Municipal Powers, Amendment 7 (1980)
139. Georgia Homestead Exemptions for Seniors, Amendment 8 (1980)
140. Georgia Life Insurance Company Taxation, Amendment 13 (1980)
141. Georgia Property Tax Exemptions for Nonprofits, Amendment 15 (1980)
142. Georgia Henry County Homestead Exemptions, Amendment 5 (1982)
143. Georgia Homestead Exemptions for Veterans, Amendment 7 (1984)
144. Georgia Property Exemptions for Nonprofit Corporations, Referendum 1 (1984)
145. Georgia Motor Vehicle Tax Exemptions, Referendum 2 (1984)
146. Georgia Tax Exemptions for Homes for the Mentally Handicapped, Referendum 3 (1984)
147. Georgia Development Districts, Amendment 7 (1986)
148. Georgia Property Tax Exemptions, Referendum 1 (1986)
149. Georgia Tax Exemptions for Seniors, Referendum 1 (March 1988)
150. Georgia Local Sales Tax, Amendment 5 (1990)
151. Georgia Intangible Tax Liability, Referendum 1 (1990)
152. Georgia Classification of Heavy Equipment, Amendment 7 (1992)
153. Georgia Enterprise Zones, Amendment 3 (1996)
154. Georgia Default on Taxes and Public Office, Amendment 1 (2002)
155. Georgia Tax Exemption for Spouses of Military Personnel, Referendum B (2002)
156. Georgia Homestead Exemptions, Referendum A (1994)
157. Georgia Tax Exemptions for Blueberry Plants, Referendum B (1994)
158. Georgia Tax Exemptions for Veterans Organizations, Referendum A (July 1994)
159. Georgia Tax Exemptions for Intangible Property, Amendment 13 (1943)
160. Georgia Taxes for Teacher Retirement System, Amendment 14 (1943)
161. Georgia DeKalb County Education Tax, Amendment 18 (1943)
162. Georgia Joint Hospital Contracts and Taxes, Amendment 27 (1943)
163. Georgia Uses of Revenue from Taxes on Fireworks, Amendment 4 (2016)
164. Georgia Amendment 3, Forest Land Conservation and Timberland Properties Amendment (2018)
165. Georgia Referendum A, Homestead Municipal Property Tax Exemption Measure (2018)
166. Georgia Referendum B, Include Business-Financed Properties in Existing Non-Profit Mentally Disabled Housing Tax Exemption Measure (2018)
167. Georgia Referendum A, Timber Equipment Exempt from Property Taxes Measure (2022)
168. Georgia Referendum A, Property Tax Exemption for Certain Charities Measure (2020)
169. Georgia Personal Property Tax Exemption Increase Measure (2024)
170. Georgia Local Option Homestead Property Tax Exemption Amendment (2024)

Recent news

The link below is to the most recent stories in a Google news search for the terms Georgia taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Georgia
• Georgia state budget and finances
• Personal income tax
• Sales tax
• Corporate income tax
• Property tax

External links

• Tax Policy Center
• Federation of Tax Administrators
• Tax Foundation

Footnotes

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