O.C.G.A. § 48-7-20 (2019)
Individual tax rates; credit for withholding and other payments; applicability to estates and trusts
(a) A tax is imposed upon every resident of this state with respect to the Georgia taxable net income of the taxpayer as defined in Code Section 48-7-27. A tax is imposed upon every nonresident with respect to such nonresident’s Georgia taxable net income not otherwise exempted which is received by the taxpayer from services performed, property owned, proceeds of any lottery prize awarded by the Georgia Lottery Corporation, or from business carried on in this state. Except as otherwise provided in this chapter, the tax imposed by this subsection shall be levied, collected, and paid annually. (a.1)(1) On and after January 1, 2024, the tax imposed pursuant to subsection (a) of this Code section shall be 5.39 percent for taxable years beginning on or after January 1, 2024; provided, however, that such rate shall be reduced by 0.10 percent annually beginning on January 1, 2025, until the rate reaches 4.99 percent, provided such annual reductions in the tax rate shall be subject to delays as provided in paragraph (2) of this subsection.
(2) Each prospective annual reduction in the tax rate that would otherwise occur as provided in paragraph (1) of this subsection shall be delayed by one year for each year that any of the following are true as of December 1:
(A) The Governor’s revenue estimate for the succeeding fiscal year is not at least 3 percent above the Governor’s revenue estimate for the present fiscal year;
(B) The prior fiscal year’s net revenue collection was not higher than each of the preceding three fiscal years’ net tax revenue collection; or
(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not contain a sum that exceeds the amount of the decrease in state revenue projected to occur as a result of the prospective reduction in the tax rates set to occur the following year.
(3) The Office of Planning and Budget shall make the determinations necessary to implement the provisions of paragraph (2) of this subsection and shall report its determinations by December 1 of each year to the department, the Speaker of the House of Representatives, the President of the Senate, and the chairpersons of the House Appropriations Committee, the House Ways and Means Committee, the Senate Appropriations Committee, and the Senate Finance Committee. This paragraph shall not be applicable after the final reduction to the rate of 4.99 percent occurs.
(b) Reserved.
(c) The amount deducted and withheld by an employer from the wages of an employee pursuant to Article 5 of this chapter, relating to current income tax payments, shall be allowed the employee as a credit against the tax imposed by this Code section. Amounts paid by an individual as estimated tax under Article 5 of this chapter shall constitute payments on account of the tax imposed by this Code section. The amount withheld or paid during any calendar year shall be allowed as a credit or payment for the taxable year beginning in the calendar year in which the amount is withheld or paid.
(d) The tax imposed by this Code section applies to the Georgia taxable net income of estates and trusts, which shall be computed in the same manner as in the case of a single individual. The tax shall be computed on the Georgia taxable net income and shall be paid by the fiduciary.
History
Ga. L. 1931, Ex. Sess., p. 3, § 24; Code 1933, § 92-3101; Ga. L. 1937, p. 109, § 2; Ga. L. 1937-38, Ex. Sess., p. 150, § 2; Ga. L. 1955, Ex. Sess., p. 27, § 1; Ga. L. 1960, p. 1005, § 1; Ga. L. 1971, p. 605, §§ 1, 2; Ga. L. 1975, p. 857, § 1; Code 1933, § 91A-3601, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1979, p. 5, § 62; Ga. L. 1987, p. 191, § 2; Ga. L. 1994, p. 597, § 2; Ga. L. 2018, p. 8, § 1-2/HB 918; Ga. L. 2022, p. 114, § 2-1/HB 1437; Ga. L. 2023, p. 335, § 2-2/SB 56, effective January 1,
2024; Ga. L. 2023, p. 730, § 7(12)/HB 475, effective July 1, 2023; Ga. L. 2024, p. 18, § 1/HB 1015, effective July 1, 2024. Amendments. The 2022 amendment, effective January 1, 2024, added subsections (a.1) and (a.2), and reserved paragraph (b)(1), relating to individual income tax tables. The first 2023 amendment, effective January 1, 2024, in subsection (a.1), rewrote paragraph (a.1)(1), which read: “On and after January 1, 2024, the tax imposed pursuant to subsection (a) of this
Code section shall be at the rates provided in subsection (a.2) of this Code section for each respective tax year; provided, however, that the actual rates for a given year tax year shall be subject to delays as provided in this subsection.”; rewrote the introductory language of paragraph (a.1)(2), which read: “Each prospective change in the tax rates that would otherwise occur as provided in paragraphs (2) through (6) of subsection (a.2) of this Code section shall be delayed by one year for each year that any of the following are true as of December 1:”; substituted “preceding three fiscal” for “preceding five fiscal” in subparagraph (a.1)(2)(B); and substituted “final reduction to the rate of 4.99 percent occurs” for “final reduction in the rates occurs as provided in paragraph (6) of subsection (a.2) of this Code section” at the end of paragraph (a.1)(3); deleted subsection (a.2), which read: “Subject to the provisions of subsection (a.1) of this Code section: “(1) For tax years beginning on or after January 1, 2024, the tax imposed pursuant to subsection (a) of this Code section shall be levied at the rate of 5.49 percent; “(2) For tax years beginning on or after January 1, 2025, the tax imposed pursuant to subsection (a) of this Code section shall be levied at the rate of 5.39 percent; “(3) For tax years beginning on or after January 1, 2026, the tax imposed pursuant to subsection (a) of this Code section shall be levied at the rate of 5.29 percent; “(4) For tax years beginning on or after January 1, 2027, the tax imposed pursuant to subsection (a) of this Code section shall be levied at the rate of 5.19 percent; “(5) For tax years beginning on or after January 1, 2028, the tax imposed pursuant to subsection (a) of this Code section shall be levied at the rate of 5.09 percent; and “(6) For tax years beginning on or after January 1, 2029, the tax imposed pursuant to subsection (a) of this Code section shall be levied at the rate of 4.99 percent.”; deleted the (b)(1) designation and deleted paragraph (b)(2), which read: “To facilitate the computation of the tax by those taxpayers whose federal adjusted gross income together with the adjustments set out in Code Section 48-7-27 for use in
arriving at Georgia taxable net income is less than $10,000.00, the commissioner may construct tax tables which may be used by the taxpayers at their option. The tax shown to be due by the tables shall be computed on the bases of the standard deduction and the tax rates specified in paragraph (1) of this subsection. Insofar as practicable, the tables shall produce a tax approximately equivalent to the tax imposed by paragraph (1) of this subsection.” See Editor’s notes for applicability. The second 2023 amendment, effective July 1, 2023, part of an Act to revise, modernize, and correct the Code, deleted the second and third sentences in paragraph (b)(2), which read: “The tax shown to be due by the tables shall be computed on the bases of the standard deduction and the tax rates specified in paragraph (1) of this subsection. Insofar as practicable, the tables shall produce a tax approximately equivalent to the tax imposed by paragraph (1) of this subsection.” The 2024 amendment, effective July 1, 2024, substituted “5.39 percent” for “5.49 percent” near the beginning of paragraph (a.1)(1). See Editor’s notes for applicability.
Annotations
Cross references. Legislative review of taxation, § Editor’s notes. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, provides that this Act is applicable to taxable years ending on or after March 11, 1987, and that a taxpayer with a taxable year ending on or after January 1, 1987, and before March 11, 1987, may elect to have the provisions of that Act apply. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by that Act. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that provisions of the federal Tax Reform Act of 1986 and of the Internal Revenue Code of 1986 which as of January 1, 1987, were not yet effective become effective for purposes of Georgia taxation on the same dates as they become effective for federal purposes.
Ga. L. 1994, p. 597, § 4, not codified by the General Assembly, provides that this Act shall be applicable to all taxable years beginning on or after January 1, 1994. Ga. L. 2018, p. 8, § 3-1(b)/HB 918, not codified by the General Assembly, provides, in part, that this Act “shall be applicable to all taxable years beginning on or after January 1, 2019.” Ga. L. 2022, p. 114, § 1-1/HB 1437, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Tax Reduction and Reform Act of 2022.’” Ga. L. 2022, p. 114, § 5-1/HB 1437, not codified by the General Assembly, provides: “(a) This Act shall become effective upon the approval of this Act by the Governor or upon this Act becoming law without such approval; provided, however, that Part II of this Act shall become effective on January 1, 2024, and shall be applicable to all taxable years beginning on or after January 1, 2024. makes this Code section applicable to all taxable years beginning on or after January 1, 2024. “(b) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years [prior to January 1, 2024] shall not be affected by the passage of this Act and shall continue to be governed by the provisions of Title 48 of the Official Code of Georgia Annotated as they existed for such prior taxable years.”
Ga. L. 2023, p. 335, § 4-1(a)/SB 56, not codified by the General Assembly, provides, in part, that the amendment of this Code section by that Act shall be effective on January 1, 2024, and shall be applicable to all taxable years beginning on or after January 1, 2024. Ga. L. 2023, p. 335, § 4-1(b)/SB 56, not codified by the General Assembly, provides: “Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of Title 48 of the Official Code of Georgia Annotated as they existed for such prior taxable years.” Ga. L. 2024, p. 18, § 2/HB 1015, not codified by the General Assembly, makes this Code section applicable to all taxable years beginning on or after January 1, 2024. Law reviews. For comment on Forrester v. Culpepper, 194 Ga. 744, 22 S.E.2d 595 (1942), see 6 Ga. B. J. 155 (1943). For article, “Revenue and Taxation: Amend Titles 48, 2, 28, 33, 36, 46, and 50 of the Official Code of Georgia Annotated, Relating Respectively to Revenue and Taxation, Agriculture, the General Assembly, Insurance, Local Government, Public Utilities, and State Government,” see 28 Georgia St. U.L. Rev. 217 (2011). For annual survey on state and local taxation, see 3 Mercer L. Rev. 231 (2022).
JUDICIAL DECISIONS Constitutionality of income tax rates. - Georgia Laws 1929, p. 92 (see now O.C.G.A. T. 48, C. 7) does not violate Ga. Const. 1877, Art. VII, Sec. II, Para. I (see now Ga. Const. 1983, Art. VII, Sec. I, Para. III), which declared that all taxation shall be uniform upon the same class of subjects, and ad valorem on all property subject to be taxed within the territorial limits of the authority levying the tax, for the reason that income is distinguished from property from which income flows, with the result that income was not property within the meaning of this provision, and did not need to be levied ad valorem. Green & Milam v. State Revenue
Comm’n, 188 Ga. 442, 4 S.E.2d 144, 1939 Ga. LEXIS 551 (1939). Legislative intent as to income earned outside state before becoming resident. - Former Code 1933, §§ 92-3002, 92-3101, 92-3112, 92-3302 (see now O.C.G.A. §§ 48-7-1, 48-7-20, and 48-7-30), when construed together, authorize if the statutes do not compel the interpretation that the legislature did not intend to impose a tax upon such portion of the income of a resident as was derived by the resident from sources outside the state before the date on which the individual became a resident of this state. Forrester v. Culpepper, 194 Ga. 744, 22
S.E.2d 595, 1942 Ga. LEXIS 663 (1942) (commented on in) 6 Ga. B.J. 155 (1943). Income earned by a nonresident but received after becoming a resident. - Income earned by a cash basis taxpayer outside the state before becoming a resident is taxable under former Code 1933, Ch. 92-31 (see now O.C.G.A. § 48-7-1 et seq.) if actually or constructively received after becoming a resident. Rogers v. Chilivis, 141 Ga. App. 407, 233 S.E.2d 451, 1977 Ga. App. LEXIS 1926, cert. denied, 434 U.S. 891, 98 S. Ct. 266, 54 L. Ed. 2d 176, 1977 U.S. LEXIS 3551 (1977). Application to sentencing guidelines. - In determining the
amount of the tax loss for purposes of calculating the defendant’s offense level for tax evasion under U.S. Sentencing Guidelines Manual § 2T1.1(c)(1), a court took into account the defendant’s state tax liability in accordance with the six percent rate specified in O.C.G.A. § 48-7-20 for individual taxpayers. United States v. Campbell, No. 1:04-CR-0424-RWS, 2006 U.S. Dist. LEXIS 96565 (N.D. Ga. June 15, 2006), aff’d, 491 F.3d 1306, 2007 U.S. App. LEXIS 16722 (11th Cir. 2007).
OPINIONS OF THE ATTORNEY GENERAL Resident must pay tax on income earned outside state. - Resident of this state is required to pay state income taxes, notwithstanding the fact that the resident’s income is earned in another state. 1952-53 Ga. Op. Att’y Gen. 443. Becoming legal resident or domiciliary of another state. - To become a legal resident or domiciliary of another state one must not only reside
there but must do so with the intention of giving up one’s legal residence or domicile in Georgia. 1969 Op. Att’y Gen. No. 69-171. Payments by check, tendered by municipal corporation to municipal officers and employees for unused sick leave, are, if the payments are legal, income and subject to taxation. 1971 Op. Att’y Gen. No. U71-16.
RESEARCH REFERENCES Am. Jur. 2d. 71 Am. Jur. 2d, State and Local Taxation, §§ 392, 426 et seq. ALR. Constitutionality of provisions of income tax law as regards income of husband and wife, 78 A.L.R. 352. Deductions in respect of leasehold in computing income tax, 82 A.L.R. 332. Inhabitancy or residence, within provisions of income tax law as equivalent of domicile, 82 A.L.R. 982. Income tax in respect of exchange of properties, 102 A.L.R. 6. Income tax in respect of salaries of public officers and employees, 114 A.L.R. 1190. When dividends on corporate stock become taxable as income to a taxpayer making his return on a cash basis, 120 A.L.R. 1280; 143 A.L.R. 596; 158 A.L.R. 1432; 167 A.L.R. 303.
Income tax in respect of salaries of public officers and employees, 120 A.L.R. 1477; 122 A.L.R. 1393; 125 A.L.R. 1421. Computation of income tax of husband and wife as affected by the fact that they make a joint return, 121 A.L.R. 650; 131 A.L.R. 984. Computation of income tax as affected by fact that taxpayer was domiciled within state for only part of taxable year, 126 A.L.R. 455. Liability of settlor, in absence of express provision in income tax law, for income tax on income of revocable trust or on trust income distributable to him, 159 A.L.R. 100. Constitutionality, construction, and application provisions of state tax law for conformity with federal income tax law or administrative and judicial interpretation, 42 A.L.R.2d 797.