Moving to Georgia: The New Southern Hub

Georgia quietly became one of the most tax-competitive states in the South after it scrapped its graduated income tax brackets and replaced them with a flat 5.49% rate. Pair that with a $295,000 median home price and a retirement income exemption that kicks in at $65,000, and you have a state that is pulling relocating households away from Florida, Texas, and the Northeast at a measurable clip.

Georgia's Tax Structure in 2026

The flat 5.49% rate applies to all Georgia taxable income. That is lower than the top marginal rates in most Northeastern and West Coast states, and Georgia has signaled that the rate will continue stepping down toward 4.99% over the next few years if revenue targets are met.

Social Security income is fully exempt from Georgia state tax. Retirees 65 and older can exclude up to $65,000 in total retirement income, covering pensions, 401(k) distributions, and IRA withdrawals. A married couple where both spouses qualify can shelter up to $130,000 from state income tax entirely. For comparison on how Georgia stacks up for retirees specifically, see our breakdown of the best states for retirees to avoid taxes.

Georgia's state sales tax is 4%, but counties stack their own rates on top. The effective combined rate in most metro counties runs between 7% and 9%. There is no statewide exemption for groceries, though some counties apply reduced rates to food purchases.

What $100,000 Looks Like After Georgia Taxes

A single filer earning $100,000 in Georgia pays state income tax on roughly $87,000 after the standard deduction. At 5.49%, that produces a state tax bill of approximately $4,776. Combined with federal taxes at that income level, a $100,000 salary nets out to roughly $72,000 to $74,000 in take-home pay, depending on filing status and deductions.

That is a meaningfully better outcome than states like California, where the marginal rate at $100,000 reaches 9.3%, or New York, where city and state taxes can push the combined rate past 10%. Georgia does not reach those levels at any income tier under the new flat structure.

The $500 tax refund that Georgia distributed to eligible filers in prior years has not been renewed for the 2026 tax year as of this writing. Eligibility for those earlier refunds required filing a 2021 and 2022 Georgia return, having a tax liability in the applicable year, and not being claimed as a dependent. If you were expecting that payment, it is not part of current Georgia tax law.

Housing and Cost of Living

Georgia's median home price of $295,000 sits well below Florida's median, which crossed $400,000 in most metro markets, and far below California's statewide median. Atlanta's suburbs, including Alpharetta, Roswell, and Cumming, offer single-family homes in the $400,000 to $600,000 range with low property tax effective rates averaging around 0.87% of assessed value.

Outside the Atlanta metro, cities like Savannah, Augusta, and Columbus offer even lower price points. Savannah has seen significant in-migration from the Northeast, driven by its coastal access, historic housing stock, and relatively mild winters. Property tax bills in coastal Georgia counties are low compared to coastal counties in the Carolinas or Florida.

Utility costs and groceries run slightly below the national average in most Georgia markets. The state does not impose an estate or inheritance tax, which matters for households with significant assets. For a full look at where heirs face the largest tax burdens, see our estate tax by state guide.

The Downsides You Should Know

Georgia has genuine drawbacks that do not disappear because the tax math looks good. Summers are brutal, with Atlanta regularly hitting heat index values above 105°F and humidity that makes outdoor work difficult from June through September. Coastal Georgia carries hurricane and tropical storm risk, though it is lower than South Florida.

Traffic in the Atlanta metro is a persistent problem. I-285 and I-75 rank among the most congested corridors in the Southeast, and public transit options outside the MARTA system are limited. If your job or lifestyle requires daily commuting, factor that into the real cost of living here.

Georgia's public school quality varies sharply by county. Several suburban Atlanta counties, including Cherokee and Forsyth, rank among the best in the region. Urban and rural districts show a much wider range of outcomes. Research the specific district before buying.

Use our state tax calculator to model your specific income, retirement distributions, and property value against Georgia's current rates.

Key Takeaways

• Georgia's flat 5.49% income tax rate applies to all filers, with a planned reduction toward 4.99% tied to revenue benchmarks.
• Retirees 65 and older can exclude up to $65,000 in retirement income per person from state tax, and all Social Security income is exempt.
• At a $100,000 salary, Georgia state income tax runs approximately $4,776, producing take-home pay in the $72,000 to $74,000 range depending on deductions.

Georgia Natural Hazard Profile

Brown recluse zone · Armadillo leprosy vector · Copperhead + cottonmouth combo