Georgia cuts income tax to 4.99% and raises the standard deduction
A larger standard deduction and a lower flat rate mean a typical Georgia worker keeps a few hundred dollars more in 2026.
Key numbers
- Rate: 5.19% → 4.99%
- Standard deduction: $12,000 → $15,000 single, $24,000 → $30,000 married
- Dependent exemption: $4,000 → $5,000
Georgia's flat income tax rate fell to 4.99% for 2026, down from 5.19%, and the state's standard deduction rose by 25%. Employers began withholding at the new rate on July 1, 2026, but the cut covers all income earned this year.
What changed
The standard deduction is now $15,000 for single filers and $30,000 for married couples filing jointly, up from $12,000 and $24,000. The exemption for each dependent grew from $4,000 to $5,000.
What it means for your paycheck
For a single worker earning $65,000, Georgia taxable income drops from $53,000 to $50,000, and the lower rate applies to all of it. State tax falls from about $2,751 to about $2,495, a saving of roughly $256 a year, or about $10 per biweekly paycheck.
Because employers only switched to the new rate in July, many workers were over-withheld in the first half of 2026. That extra amount comes back as part of your Georgia refund when you file in 2027.
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