Skip to content
2025 State Tax
Competitiveness Index

Georgia | #26 Overall

Georgia‘s tax system ranks 26th overall on the 2025 State Tax Competitiveness Index. Georgia’s tax code includes all major tax types. The state has recently transitioned to a flat individual income tax and is gradually reducing the tax rate (currently 5.39 percent, scheduled to reach 4.99 percent by 2028), two positive developments in terms of tax competitiveness. However, the state still faces strong regional competition, as both Florida and Tennessee do not impose individual income taxes, while Alabama and North Carolina have lower rates.

Since 2024, Georgia’s corporate income tax rate has been aligned with the individual income tax rate and is set to decrease from the current 5.39 percent to 4.99 percent by 2028. However, the state does not allow first-year expensing of capital investment and imposes a nuisance capital stock tax of up to $5,000 per year. Like many states, Georgia also taxes tangible personal property. The state offers a de minimis exemption, but it is quite low.

Georgia’s state sales tax rate is relatively low at 4 percent, but localities are authorized to impose local sales taxes, with an average rate of 3.42 percent, bringing the combined rate to 7.42 percent, which is above the national average. Georgia does not impose inheritance, estate, or gift taxes.

CategoryRankRank ChangeScore
Overall26-65.10
Corporate Taxes12-25.57
Individual Income Taxes31-35.08
Sales Taxes2314.83
Property Taxes3424.82
Unemployment Insurance Taxes24-35.16

Top Overall States

Bottom Overall States

Neighboring States

Compare Neighboring States

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

More on Georgia

OBBBA business expensing state tax codes 2025 One Big Beautiful Bill Business Expensing State Tax Conformity Questions

The OBBBA Gets Expensing Right. States Should Follow Suit.

However states choose to respond to other tax provisions of the One Big Beautiful Bill Act, they should conform to the pro-growth provisions, which represent a marked improvement in the corporate tax code.

12 min read
2025 sales tax holidays 2025 tax free weekends for back to school shopping by state

Sales Tax Holidays by State, 2025

However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.

16 min read
State Implications of the GILTI to NCTI Conversion The One, Big, Beautiful Bill’s (OBBB) changes to the taxation of international income

State Implications of the GILTI to NCTI Conversion

The One Big Beautiful Bill’s changes to the taxation of international income have surprising implications for state codes, yielding tax increases and a revised tax base that, through quirks of state incorporation, bears very little resemblance to the federal base and almost nothing of its purpose.

10 min read