Index Component
Georgia — Individual Income Taxes
#16 on Individual Income Taxes out of 50 states
Score 5.55 / 10 · up 3 places from 2026
30.2% of the total Index score
Georgia ranks 16th for individual income taxes on the 2027 State Tax Competitiveness Index.
Georgia on Individual Income Taxes across the States
#16 on Individual Income TaxesThe row places the states on a 0 to 10 score scale for Individual Income Taxes. Georgia is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's Individual Income Taxes page.
Individual Income Taxes
#16 5.55
- Georgia
- Other states, by rank (1st to 50th)
- 50-state median
Individual Income Taxes Ranking Changes, 2020–2027
#16 in 2027 · up 17 places from 2020Georgia ranked 33rd on Individual Income Taxes in 2020 and ranks 16th in 2027, an improvement of 17 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Ranks and Scores on Individual Income Taxes
Every state's rank and score on Individual Income Taxes in 2026 and 2027, with the change in rank, and its overall rank. A rank of 1 is best. The District of Columbia's ranks carry an asterisk because they do not affect the states' ranks, and DC stays at the bottom of the table.
See the Individual Income Taxes Map for All States
| State | 2026 Rank | 2026 Score | 2027 Rank | 2027 Score | Rank Change | Overall Rank |
|---|---|---|---|---|---|---|
 Alaska | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 3 |
 Florida | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 4 |
 South Dakota | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 2 |
 Tennessee | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 8 |
 Texas | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 5 |
 Wyoming | 1 | 10.00 | 1 | 10.00 | No change since 2026 | 1 |
 Nevada | 7 | 6.68 | 7 | 6.88 | No change since 2026 | 21 |
 New Hampshire | 8 | 6.58 | 8 | 6.73 | No change since 2026 | 6 |
 Louisiana | 12 | 5.82 | 9 | 6.35 | Up 3 places since 2026 | 23 |
 Utah | 11 | 5.88 | 10 | 6.07 | Up 1 place since 2026 | 10 |
 Illinois | 14 | 5.77 | 11 | 5.95 | Up 3 places since 2026 | 38 |
 Missouri | 16 | 5.69 | 12 | 5.86 | Up 4 places since 2026 | 9 |
 Nebraska | 22 | 5.37 | 13 | 5.67 | Up 9 places since 2026 | 16 |
 Arizona | 9 | 5.91 | 14 | 5.56 | Down 5 places since 2026 | 17 |
 Oklahoma | 28 | 5.26 | 15 | 5.56 | Up 13 places since 2026 | 15 |
| Georgia | 19 | 5.62 | 16 | 5.55 | Up 3 places since 2026 | 24 |
 Kentucky | 25 | 5.30 | 17 | 5.54 | Up 8 places since 2026 | 26 |
 Iowa | 10 | 5.88 | 18 | 5.53 | Down 8 places since 2026 | 18 |
 North Carolina | 23 | 5.32 | 19 | 5.52 | Up 4 places since 2026 | 11 |
 Colorado | 20 | 5.59 | 20 | 5.49 | No change since 2026 | 33 |
 Montana | 13 | 5.80 | 21 | 5.47 | Down 8 places since 2026 | 7 |
 Kansas | 27 | 5.27 | 22 | 5.44 | Up 5 places since 2026 | 19 |
 North Dakota | 15 | 5.77 | 23 | 5.43 | Down 8 places since 2026 | 12 |
 West Virginia | 29 | 5.18 | 24 | 5.38 | Up 5 places since 2026 | 29 |
 Idaho | 17 | 5.64 | 25 | 5.28 | Down 8 places since 2026 | 13 |
 Rhode Island | 30 | 5.15 | 26 | 5.27 | Up 4 places since 2026 | 39 |
 South Carolina | 24 | 5.31 | 27 | 5.26 | Down 3 places since 2026 | 34 |
 Indiana | 21 | 5.39 | 28 | 5.16 | Down 7 places since 2026 | 14 |
 Mississippi | 34 | 4.95 | 29 | 5.14 | Up 5 places since 2026 | 27 |
 Michigan | 18 | 5.63 | 30 | 5.14 | Down 12 places since 2026 | 25 |
 Alabama | 32 | 5.02 | 31 | 5.10 | Up 1 place since 2026 | 35 |
 Arkansas | 33 | 4.97 | 32 | 5.01 | Up 1 place since 2026 | 32 |
 Ohio | 38 | 4.71 | 33 | 5.00 | Up 5 places since 2026 | 36 |
 Pennsylvania | 35 | 4.92 | 34 | 4.94 | Up 1 place since 2026 | 30 |
 New Mexico | 36 | 4.80 | 35 | 4.93 | Up 1 place since 2026 | 28 |
 Washington | 31 | 5.13 | 36 | 4.85 | Down 5 places since 2026 | 47 |
 Delaware | 39 | 4.68 | 37 | 4.82 | Up 2 places since 2026 | 22 |
 Virginia | 37 | 4.80 | 38 | 4.81 | Down 1 place since 2026 | 31 |
 Wisconsin | 40 | 4.67 | 39 | 4.72 | Up 1 place since 2026 | 20 |
 Vermont | 42 | 4.49 | 40 | 4.51 | Up 2 places since 2026 | 42 |
 Minnesota | 44 | 4.17 | 41 | 4.41 | Up 3 places since 2026 | 41 |
 Maine | 26 | 5.29 | 42 | 4.34 | Down 16 places since 2026 | 40 |
 Massachusetts | 43 | 4.30 | 43 | 4.29 | No change since 2026 | 45 |
 Oregon | 41 | 4.60 | 44 | 4.20 | Down 3 places since 2026 | 37 |
 Connecticut | 46 | 3.72 | 45 | 3.82 | Up 1 place since 2026 | 46 |
 Hawaii | 45 | 3.82 | 46 | 3.65 | Down 1 place since 2026 | 43 |
 Maryland | 47 | 3.50 | 47 | 3.64 | No change since 2026 | 44 |
 New Jersey | 48 | 2.78 | 48 | 2.85 | No change since 2026 | 48 |
 California | 50 | 2.33 | 49 | 2.56 | Up 1 place since 2026 | 49 |
 New York | 49 | 2.53 | 50 | 2.31 | Down 1 place since 2026 | 50 |
 District of Columbia | 47* | 3.72 | 45* | 3.87 | — | 47* |
*DC's rank does not affect the states' ranks.
Georgia and Its Neighbors on Individual Income Taxes
#16 on Individual Income TaxesGeorgia borders 5 states and ranks 16th on Individual Income Taxes; 2 of them rank higher and 3 rank lower.
- Florida #1 Score 10.00 15 places better
- Tennessee #1 Score 10.00 15 places better
- Georgia #16 Score 5.55 This state
- North Carolina #19 Score 5.52 3 places behind
- South Carolina #27 Score 5.26 11 places behind
- Alabama #31 Score 5.10 15 places behind
What's in This Component
The individual income tax component measures the impact of state and local taxes that fall on wage earners and pass-through businesses.
Each component is built from two equally weighted parts, called subindices: one measures the tax rates and the other the tax base, meaning what the tax applies to. Each subindex is made up of one or more variables.
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Rate Subindex
The individual income tax rate subindex measures the impact of tax rates on the marginal dollar of individual income using several criteria: the top tax rate, the number of brackets and top bracket threshold, and the progressivity of the individual income tax code. The rates and brackets used are for a single taxpayer, not a couple filing a joint return.
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Base Subindex
The individual income tax base subindex takes into account measures enacted to prevent double taxation, whether the code is indexed for inflation, and how the tax code treats married couples compared to singles. The base subindex also accounts for the filing and withholding thresholds for nonresidents.
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What This Component Includes
The variables behind it, grouped as in the report's tables:
- Individual Income Tax Rates
- Marriage Penalty, Capital Income, Indexation
- Other Individual Base Variables
- Other Individual Income Variables
How the Score Is Built
Each part is scored from 0 to 10, with 10 the most competitive. Rank is among the 50 states.
| Part | Score | Rank |
|---|---|---|
| Top individual income tax rate | 6.88 | 25 |
| Income recapture | 10.00 | 1 |
| Income level where the top rate begins | 9.91 | 17 |
| Number of brackets | 9.17 | 9 |
| Progressivity of rates | 10.00 | 1 |
| Progressivity | 9.77 | 15 |
| Rate Subindex | 8.32 | 19 |
| Marriage penalty | 10.00 | 1 |
| Inflation indexing of brackets and deductions | 0.80 | 33 |
| Conformity to the federal tax code | 5.00 | 30 |
| Taxation of tips | 5.00 | 39 |
| Taxation of overtime pay | 5.00 | 41 |
| Base Subindex | 7.68 | 21 |
| Individual Income Taxes Score | 8.00 | 16 |
Tax Data Explorer
Every individual income taxes variable behind Georgia's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
31 data points · Shaded values differ from Georgia
Individual Income Tax Rates
| Variable | Georgia | Alabama | Florida | North Carolina | South Carolina | Tennessee |
|---|---|---|---|---|---|---|
| Bracket 1 | 4.99% > $0 | 2.0% > $0 (differs) | No Income Tax (differs) | 3.99% > $0 (differs) | 1.99% > $0 (differs) | No Income Tax (differs) |
| Bracket 2 | n.a. | 4.0% > $500 (differs) | n.a. | n.a. | 5.21% > $30,000 (differs) | n.a. |
| Bracket 3 | n.a. | 5.0% > $3,000 (differs) | n.a. | n.a. | n.a. | n.a. |
| Standard Deduction (Single Filer) | $12,000 | $3,000 (differs) | n.a. (differs) | $12,750 (differs) | $8,350 (differs) | n.a. (differs) |
| Personal Exemption (Single Filer) | n.a. | $1,500 (differs) | n.a. | n.a. | n.a. | n.a. |
| Personal Exemption Credit (Single Filer) | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Personal Exemption per Dependent | $5,000 | $1,000 (differs) | n.a. (differs) | n.a. (differs) | $4,930 (differs) | n.a. (differs) |
| Personal Exemption Credit per Dependent | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Average Local Income Tax Rate | None | 0.50% (differs) | None | None | None | None |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Marriage Penalty, Capital Income, Indexation
| Variable | Georgia | Alabama | Florida | North Carolina | South Carolina | Tennessee |
|---|---|---|---|---|---|---|
| Marriage Penalty | No | No | n.a. (differs) | No | Yes (differs) | n.a. (differs) |
| Married Couples Can File Separately on One Return | No | No | n.a. (differs) | No | No | n.a. (differs) |
| Convenience Rule | No | No | No | No | No | No |
| Interest Taxed | Yes | Yes | n.a. (differs) | Yes | Yes | n.a. (differs) |
| Dividends Taxed | Yes | Yes | n.a. (differs) | Yes | Yes | n.a. (differs) |
| Capital Gains Taxed | Yes | Yes | n.a. (differs) | Yes | Yes | n.a. (differs) |
| Combined Capital Gains Tax Rate | 4.99% | 5% (differs) | n.a. (differs) | 3.99% (differs) | 2.918% (differs) | n.a. (differs) |
| Tax Brackets Indexed for Inflation | Yes | No (differs) | n.a. (differs) | Yes | Yes | n.a. (differs) |
| Standard Deduction Indexed for Inflation | No | No | n.a. (differs) | No | No | n.a. (differs) |
| Personal Exemption Indexed for Inflation | No | No | n.a. (differs) | Yes (differs) | Yes (differs) | n.a. (differs) |
| Progressivity Ratio | 1.00 | 1.00 | n.a. (differs) | 1.00 | 1.00 | n.a. (differs) |
Other Individual Base Variables
| Variable | Georgia | Alabama | Florida | North Carolina | South Carolina | Tennessee |
|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | No (differs) | n.a. (differs) | Yes | Yes | n.a. (differs) |
| Conformity Status | Static (current) | Rolling (differs) | n.a. (differs) | Static (not current) (differs) | Static (not current) (differs) | n.a. (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | n.a. (differs) | Yes | Yes | n.a. (differs) |
| AMT Levied | No | No | n.a. (differs) | No | No | n.a. (differs) |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 179 Expensing Limit | $2,560,000 | $2,560,000 | $2,560,000 | $25,000 (differs) | $1,250,000 (differs) | $2,560,000 |
| Tips | Partial | Taxable (differs) | n.a. (differs) | Taxable (differs) | Taxable (differs) | n.a. (differs) |
| Overtime | Partial | Partial | n.a. (differs) | Taxable (differs) | Taxable (differs) | n.a. (differs) |
| Filing and Withholding Threshold Index | 5.659 | 5 (differs) | 10 (differs) | 0 (differs) | 1.132 (differs) | 10 (differs) |
Other Individual Income Variables
| Variable | Georgia | Alabama | Florida | North Carolina | South Carolina | Tennessee |
|---|---|---|---|---|---|---|
| Income Recapture | No | No | n.a. (differs) | No | No | n.a. (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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