The Code of Georgia sets forth the structure of personal income taxes levied by the state in Title 48, Chapter 7. Not all states charge income taxes, and the ones that do not typically fund public necessities like schools and police departments with higher consumer taxes. Georgia’s income tax laws establish a graduated payment schedule, which means that those who earn more money pay a greater percentage of income in taxes.
Specifically, for the first $750 of income, individuals must pay only $7.50, or one percent, in state income taxes. For the next $1,500, the rate is two percent. For the next $1,500, it is three percent. The next $1,500 after that is taxed at a rate of four percent. The five percent bracket covers the next $1,750. Thus, the first $7,000 of an individual’s earnings is taxed based on this increasing scale. Any amount over $7,000 is taxed at six percent.
State income taxes apply to residents of Georgia and non-residents if they earned income in the state. Counties and municipalities have the right to levy an addition tax personal income of up to one percent. Partnership income is not taxed.
The interaction between state and federal tax laws may be quite complicated in some cases. Under certain circumstances, an individual may be entitled to a deduction against federal taxes for state taxes paid. Federal taxes paid, on the other hand, are not deductible from state taxes.
Those who have questions about their tax obligations under state or federal law may want to consult an attorney with experience in tax law. An attorney may provide advice based on the facts of an individual situation or outline methods to organize finances to minimize tax obligations going forward.
Source: Findlaw, “Georgia Personal Income Tax Laws“, October 21, 2014