Taxes are a necessary part of life, and people in the state of Georgia are no exception. From income taxes to sales taxes, Georgians pay a variety of taxes each year. Understanding the Georgia state tax rate and other taxes in the state can help you budget better and plan for the future. In this article, we’ll look at some of the different taxes Georgians pay and how the Georgia state tax rate has changed over the years.
Georgia Income Tax Rate
One of the taxes Georgians pay every year is income tax. The Georgia income tax rate is determined by a variety of factors, including your marital status, income level, and number of dependents. The tax rate ranges from 1.0% to 6.0%, and the tax brackets are updated every year to keep up with inflation. Currently, the highest tax rate in Georgia is 6.0%, which applies to individuals who make more than $7,000 in taxable income each year. The lowest rate of 1.0% applies to individuals who make less than $750 in taxable income each year.
Georgia Sales Tax Rate
In addition to income taxes, Georgians must also pay sales taxes on certain goods and services. The Georgia sales tax rate is currently 4.0%, with cities and counties able to add an additional local tax of up to 4.9%. The state also charges a use tax of 4.0%, which applies to items purchased from out-of-state retailers. The use tax rate is the same as the sales tax rate, so consumers don’t have to worry about paying a higher rate when they shop online.
Property Taxes in Georgia
Owners of real estate in Georgia must pay property taxes each year. The rate of property taxes varies by county, but the statewide average is about 0.87%. Property taxes in Georgia are based on assessed value, so if the value of your property increases, so will your property taxes. Property taxes are usually paid in two installments, with the first installment due by June 30th and the second installment due by December 5th.
Gas Tax in Georgia
In addition to income, sales, and property taxes, Georgians must also pay a gas tax each time they fill up their cars. The state gas tax rate is currently 26.2 cents per gallon of gasoline. This rate includes both the state gas tax of 7.5 cents per gallon and the federal gas tax of 18.4 cents per gallon. The state gas tax rate has remained the same since 2013, while the federal gas tax rate has increased several times over the years.
Georgia State Tax Rate Changes
Over the past few years, the Georgia state tax rate has remained relatively stable. The income tax rate has stayed the same since 2013, while the sales tax rate has remained unchanged since 2012. Property taxes have increased slightly in some areas, but the overall rate has stayed the same since 2011. The gas tax rate has also stayed the same since 2013.
Tax Credits in Georgia
In addition to the different tax rates in Georgia, the state also offers a variety of tax credits to help reduce the overall tax burden. Some of these credits include a homestead exemption, a credit for elderly homeowners, and a credit for energy efficient appliances. These credits can help reduce your overall tax liability, so it’s important to understand which credits you may be eligible for.
Conclusion
The Georgia state tax rate has remained relatively stable over the past few years, but it’s important to keep up with changes in the tax code. Understanding the different taxes in the state and how they affect your bottom line can help you budget better and plan for the future. In addition to the different taxes, the state also offers a variety of tax credits to help reduce your overall tax burden.
