GA INCOME TAX: Definition, Form, Rates, and Brackets

GA INCOME TAX
Forbes

Georgia has a progressive income tax with rates ranging from 1% to 5.75 %. The GA income tax is also known as the Georgia income tax. This article talks about the GA income tax rates, forms, and brackets. It also talks about GA income tax refund and center.

Who Is Required to File State Taxes in Georgia?

GA income tax rates range from 1% to 5.5%. However, an income of $7,000 for solo filers and $10,000 for married taxpayers filing jointly are placed in the highest tax bracket.

If any of the following applies to you as a full-year resident of Georgia, you must file an income tax return:

  • A federal income tax return is necessary.
  • You have income in Georgia that is subject to state income tax but not federal income tax.
  • Your income exceeds the standard and personal deductions in Georgia.

As a part-year resident or non-resident, you may also have to file an income tax return. Part-year residents who are legal residents of Georgia for any portion of the year who are required to submit a federal income tax return must file a tax return in Georgia. Part-time residents should fill out Schedule 3 to estimate how much Georgia income taxes they will owe.

Non-residents must file a tax return if they earn money in Georgia, such as earnings, lottery winnings, rent, or income from flow-through corporations.

GA Income Tax Refund

Single filers and married people filing separately may be eligible for a maximum refund of $250. Filers who are the head of the household may be eligible for a maximum return of $375. Married couples filing jointly may be eligible for a maximum refund of $500. The amount of the GA income tax refund will be determined by the individual’s tax liability. To qualify, you must have filed both your 2020 and 2021 returns before the 2021 return filing date (including any extension granted by the Department of Revenue).

Any Georgian who was a full-year resident in 2020 or 2021 and filed a Georgia(GA) individual income tax return in those years is eligible for the refund. Part-year filers who submit individual tax returns for both years (2020 and 2021) will be entitled to a proportional refund equal to the maximum amounts based on filing status multiplied by the percentage of their income that is taxable in Georgia.

Georgia Gov. Brian Kemp signs legislation to provide more than $1.1 billion in state income refunds on Wednesday, March 23, 2022, in the Georgia Capitol in Atlanta. People who submitted tax returns in 2020 and 2021 will receive refunds ranging from $250 to $500.

HB 1302 allows Georgia taxpayers to receive a partial or total GA income tax refund of their 2020 income taxes. Because of the state’s revenue excess, the Georgia General Assembly recently passed and Governor Kemp signed legislation allowing for an extra GA tax refund of income taxes beginning in 2020.

Methods for Checking the Status of Your Tax Refund

  • Examine your refund online (does not require a login).
  • Create an account with the Georgia Tax Center (GTC). GTC allows for internet access and can send notifications, such as when a refund is provided.
  • Call 877-423-6711 for an automatic response.

GA Income Tax Rates

At 5.75 percent, Georgia also has corporate GA income tax rates. Georgia Governor Brian Kemp signed House Bill 1437 into law on April 26, 2022, replacing the current progressive personal income tax with a flat rate of 5.49% beginning January 1, 2024, with steady reductions each year until the flat rate hits 4.99% on January 1, 2029. Rate cuts can be postponed by one year each year when certain budget conditions are not satisfied.

As the personal income tax rate is reduced, the standard deduction is increased. Governor Kemp noted that “HB 1437 gave the largest tax cut in Georgia history” and that, if enacted, “the average Georgia family of four earning 60,000 dollars will save more dollars for state yearly taxes.” It has a state sales tax rate of 4.00 percent, a maximum municipal sales tax rate of 4.90 percent, and a combined state and local sales tax rate of 7.35 percent on average. The GA income tax system ranks 32nd overall in our 2022 State Business Tax Rates Climate Index.

GA Income Tax Forms

Some web browsers include a PDF viewer, which may or may not be compatible with some of the forms. You may need Adobe Reader for your browser to complete the form, or you may need to download it. The forms for the GA income tax are listed below;

  • 2106 Employee Business Expenses GA income tax forms
  • 4562 Amortization & Depreciation GA income tax forms
  • Individual/Fiduciary Underpayment of Estimated Tax 500-UET
  • Individual Income Tax Return 500X Amended
  • Fiduciary Income Tax Return (Form 501)
  • 500 Individual GA Income Tax Return
  • 600S-CA GA income tax forms
  • Form for Bonding Alcohol, Tobacco, and Motor Fuel
  • Application for a Certificate of Release from State Tax Execution on Real Property (Form CD-14135)

GA Income Tax Brackets

The IRS established tax brackets to assess how much money you owe the IRS each year.

Your tax liability determines your income. However, if your taxable income rises, so will your tax burden. Georgia has a progressive income tax system that includes six tax rates ranging from 1.00% to 5.75%. Residents with higher incomes should expect to pay more in state and federal taxes. Georgia has no local income tax.

If you earn $70,000 a year and live in the Georgia region of the United States, you will have a tax at a rate of $11,993. Meanwhile, your marginal tax rate is 22% and your average tax rate is 11.98%. This marginal tax rate denotes the rate at which your immediate tax income increases.

The tax rate you pay determines your filing status and the amount of taxable income you report for the year. The upper tax bracket thresholds are increasing for the 2022 tax year—that is, the return you will file next spring—to reflect the biggest year-over-year inflation in decades. You can use the tax brackets to estimate how much tax you will owe for the year. Here are the tax brackets for the fiscal years 2022 and 2021, as well as instructions for determining which top bracket applies to your taxable income.

How to Calculate Your Tax Rate

Divide your taxable income into each applicable bracket to get your tax bracket. Your tax bracket also determines your filing status: single, married filing jointly, married filing separately, or head of household.

Your marginal tax bracket is the tax bracket in which your highest dollar falls. In 2022, your marginal tax bracket is 22% if you are single and have a taxable income of $75,000 or less. Some of your earnings, however, will be in the lower tax brackets of 10% and 12%. However, as your income rises, so will your taxes:

  • The first $10,275 is taxed at 10%, for a total of $1,027.50.
  • The remaining $31,500 (41,775-10,275) is taxed at 12%, amounting to $3,780.
  • The remaining $33,225 (75,000-41,775) is taxed at a rate of 22%. $7,309.50
  • Your total tax liability for a $75,000 income is $1,027.50 + $3,780 + $7,309.50 = $12,117. 

Tax Rates for Singles in 2022

          Taxable Income                 Tax Due
Not over $10,27510% of the taxable income
Over $10,275 but $41,775$1,027.50 plus 12% of the excess over $10,275
Over $41,775 but not over $89,075$4,807.50 plus 22% of the excess over $41,775
Over $89,075 but not over $170,050$15,213.50 plus 24% of the excess over $89,075
Over $215,950 but not over $323,925$49,335.50 plus 35% of the excess over $215,950
GA Income Tax for Singles

Head of Household Tax Brackets for 2022

            Taxable Income                  Tax Due
Not over $14,65010% of the taxable income
Over $14,650 but $55,900$1,465 plus 12% of the excess over $14,650
Over $55,900 but not over $89,050$6,415 plus 22% of the excess over $55,900
Over $215,950 but not over $539,900$47,836.50 plus 35% of the excess over $215,950
GA Income Tax for Household

Married Filing Jointly Tax Brackets for 2022

          Taxable Income            Tax Due
Not over $20,55010% of the taxable income
Over $20,550 but not over $83,550$2,055 plus 12% of the excess over $20,550
Over $431,900 but not over $647,850$98,671 plus 35% of the excess over $431,900
GA Income Tax for Married Couples

GA Tax Center

The GA Tax Center (GTC) is a one-stop shop for electronic filing and payment of taxes in Georgia. You can also file and pay sales and use tax, as well as other taxes and levies, and the international gasoline tax. You can also call this number at 404-417-2100. 

Why Should You Use the GA Tax Center?

  • Accuracy GA tax center: electronic filing decreases the possibility of inaccuracy. Utilizing one of the various tax preparation software products to validate all submitted returns can be a hassle. We’ll notify you if any errors arise.
  • Secure GA tax center: Returns and payments submitted electronically are transmitted over secure and encrypted lines. The Georgia Department of Revenue follows industry-standard security best practices.
  • Paperless GA tax center: When you go paperless, you save time, money, and frustration. Electronic filing is completely free. There is no need for mail, and all of your returns are available online.

What Is the Georgia Income Tax Rate in 2022?

The House and Senate leaders reached an agreement on a bill that would progressively reduce the state’s income tax rate from 5.75% to 4.99%. Meanwhile, the bill was passed by the House and Senate in the final hours of the 2022 session.

Is GA a Tax-Friendly State?

Georgia is extremely tax-friendly to retirees. Social Security benefits are not taxed. Withdrawals from retirement savings are taxed in part. Wages are taxed at standard rates, with a marginal state tax rate of 5.90%.

How Is Georgia’s State Income Tax Calculated?

After the Union Budget becomes visible, you can use the income tax calculator to determine your taxes based on your income.

Salary income is the sum of the basic salary + HRA + special allowance + transportation allowance + any other allowances. Some aspects of your compensation are tax-free, such as phone bill reimbursement and leave travel allowance.  Using the HRA Calculator, determine the exempt portion of HRA.

Do Georgia Residents Pay Income Tax?

If any of the following applies, you must file a Georgia income tax return: You have to fill out the federal income tax return. You have income that is liable to Georgia income tax but not to federal income tax. Your income exceeds the standard deduction and personal exemptions in Georgia.

Georgia residents who earn a living must file state income taxes. Meanwhile, the Georgia individual income tax is calculated using your federal adjusted gross income (income before taxes), Georgia law adjustments, and filing requirements.

Is Georgia a High-Tax State?

Georgia also has a corporate income tax rate of 5.75 percent. Georgia has a state sales tax rate of 4.00 percent, a maximum local sales tax rate of 4.90 percent, and a combined state and local sales tax rate of 7.35 percent. On our 2022 State Business Tax Climate Index, Georgia’s tax regime ranks 32nd nationwide.

How Much Does Georgia Tax Your Paycheck?

Georgia’s income tax system is progressive, with six tax rates ranging from 1.00% to 5.75%. Residents of the Peach State who earn more money can expect to pay more in state and federal taxes. In Georgia, there are no local income taxes.

Employers in Georgia, like employers in every other state, withhold a specific amount of federal and FICA taxes from each of your paychecks to send to the IRS. However, federal taxes are for your annual income taxes by the IRS, while FICA taxes are for your Medicare and Social Security.

Conclusion 

GA income tax is among the highest rates in the country, ranging from 1.00% to 5.75%. However, these taxes help the state in its development of the economy. It is subject to your GA income tax filing status: Single filers and married people filing separately may be eligible for a maximum refund of $250. Filers who are the head of the household may be eligible for a maximum return of $375. Married couples filing jointly may be eligible for a maximum refund of $500.

Anyone can pay the GA income tax as long as you are a resident or you earn from the state source as a non-resident. This article teaches about the “GA income tax.”

GA INCOME TAX FAQs

Who pays Ga income tax?

If you are a resident or nonresident of Georgia and receive income from a Georgia source, you must pay taxes to the state of Georgia. State income tax rates range from 1% to 5.75%, with a 4% general sales tax. State jurisdictions may levy additional sales taxes.

Who qualifies for Georgia tax refund?

Any Georgian who was a full-year resident in 2020 or 2021 and filed a Georgia individual income tax return in those years is eligible for the refund.

Do I have to file a Georgia tax return?

If any of the following apply to you, you must file a Georgia income tax return:

  • A Federal income tax return must be filed.
  • You have income that is taxed in Georgia but not in the federal government.
  • Your income is greater than the standard deduction and personal exemptions in Georgia.
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