Georgia Income Tax Rate 2021 Overview
Georgia applies a graduated individual income tax system for 2021, with rates set by state law and administered by the Georgia Department of Revenue. The top marginal rate is 5.37% for taxable income above a threshold that adjusts for inflation, while lower brackets use lower rates. The state also offers specific credits and deductions that can reduce effective tax liability for individuals and certain businesses. For the latest official rate tables and forms, see the Georgia Department of Revenue website Georgia Department of Revenue.
For comparison, Georgia's individual income tax rates are generally lower than the top federal rate, and the state ranks among those with moderate individual income tax burdens. The 2021 brackets and rates apply to tax year 2021 returns filed in 2022, and the state uses a single set of brackets for most residents. Some cities and counties in Georgia may levy additional local income taxes, which can affect total tax liability. For broader state tax context, see the Tax Foundation's state individual income tax rates page Tax Foundation state rates.
Georgia Income Tax Brackets and Rates for 2021
Individual Tax Brackets
Georgia's 2021 individual income tax brackets use a progressive structure with rates such as 1%, 2%, 3%, 4%, 5%, and 5.37%, depending on taxable income and filing status. The brackets are defined by taxable income thresholds that are adjusted annually for inflation, and the rates apply to income above each threshold. For exact dollar amounts and threshold details, refer to the Georgia Department of Revenue's official 2021 tax rate schedule Georgia Department of Revenue.
For example, a single filer with taxable income within the lowest bracket pays the corresponding low rate, while higher income levels are taxed at progressively higher rates. Married couples filing jointly have separate threshold levels, and head-of-household filers may have different brackets. The effective tax rate for many Georgia residents is lower than the top marginal rate due to the graduated structure and available deductions. For a side-by-side comparison of Georgia's rates with other states, see the Tax Foundation's state tax rate comparison Tax Foundation state rates.
Georgia Business and Corporate Income Tax Context
Corporate and Pass-Through Entities
Georgia's corporate income tax rate for 2021 is a flat rate, and the state also taxes certain pass-through entities at the entity level under specific rules. The corporate rate is set by state statute, and businesses must file returns with the Georgia Department of Revenue according to their entity type and tax year. For the current corporate rate and filing requirements, see the Georgia Department of Revenue's business tax section Georgia Department of Revenue.
Georgia's business tax environment includes individual income taxes on owners of pass-through entities, which can affect overall tax planning for companies structured as S corporations or partnerships. The state does not impose a separate franchise tax or gross receipts tax in many cases, but specific industries may face additional levies. For context on how Georgia's business taxes compare nationally, see the Tax Foundation's state business tax climate index Tax Foundation business tax climate.