Georgia Income Tax Withholding 2026: Employer Guide

Georgia employers must withhold state income tax from employee wages — but the good news is that Georgia’s move to a flat income tax makes the calculation significantly simpler than states with graduated brackets. The current flat rate of 5.49% is scheduled to decrease annually toward a target of 4.99% under HB 1015. This guide covers everything Georgia employers need to know about state income tax withholding: the flat rate and reduction schedule, Form G-4, how to calculate withholding, filing frequencies, the Georgia Tax Center, and penalties for non-compliance.

Georgia’s Flat Income Tax

Georgia moved to a flat income tax structure, replacing its previous graduated system that had rates ranging from 1% to 5.75%. This transition — one of the most significant tax changes in the state’s recent history — simplifies withholding calculations significantly for employers.

Key facts about Georgia’s flat income tax:

• 2024 rate: 5.49% on all taxable income
• Single flat rate: No graduated brackets, no multiple rate tiers to calculate
• Standard deductions and personal exemptions still apply, so the effective rate on total gross wages may be slightly lower than 5.49%
• Applies to all wage income: Regular wages, supplemental wages, bonuses, and commissions

For employers, this is a major simplification. Instead of looking up bracket amounts and calculating graduated rates, you apply a single flat percentage after accounting for allowances and exemptions claimed on the employee’s G-4 form.

The Rate Reduction Schedule

Under HB 1015 (signed into law in 2022), Georgia’s income tax rate is scheduled to decrease annually until it reaches a target rate of 4.99%. This is a significant long-term tax reduction for Georgia residents and affects employer withholding calculations each year the rate changes.

Key details of the rate reduction:

• Target rate: 4.99%
• Reduction amount: 0.10% per year
• Timeline: The path from 5.49% to 4.99% takes five years (5 reductions of 0.10%)
• Revenue contingency: Each annual reduction is contingent on state revenue meeting certain thresholds set by the legislature
• Not automatic: If revenue falls short, a scheduled reduction may be delayed

Employers should update their withholding tables each year as announced by the Georgia Department of Revenue. When a rate reduction takes effect, the DOR publishes updated withholding tables and guidance. Payroll software providers typically push updates automatically, but employers using manual calculations must watch for these announcements.

Form G-4: Employee’s Withholding Allowance Certificate

Form G-4 is Georgia’s equivalent of the federal W-4. It determines how much state income tax to withhold from an employee’s paycheck based on their filing status, number of allowances, and any additional withholding they request.

Key points about Form G-4:

• When to collect: Employees should complete Form G-4 when they are hired and whenever their tax situation changes (marriage, new dependents, second job, etc.)
• Filing status options: Single, Married Filing Joint, Married Filing Separate, Head of Household
• Allowances: Employees claim allowances based on their personal situation — more allowances mean less withholding
• Additional withholding: Employees may request additional amounts withheld per pay period
• Exemption from withholding: Employees may claim exemption if they had no Georgia income tax liability in the prior year and expect none in the current year

If no G-4 is filed: The employer must withhold at the single filing status with zero allowances — the highest withholding rate. This protects both the employer and the employee from underwithholding, but employees will typically want to file a G-4 to optimize their withholding amount.

How to Calculate Withholding

Georgia state income tax withholding is calculated using the withholding tax tables published by the Georgia Department of Revenue. These tables account for the employee’s filing status, number of allowances, and pay frequency (weekly, biweekly, semi-monthly, or monthly).

For payroll software users: Most modern payroll platforms handle Georgia withholding calculations automatically. The software uses the employee’s G-4 information and current tax tables to compute the correct withholding each pay period. This is the recommended approach for accuracy and compliance.

For manual calculations:

1. Determine the employee’s gross wages for the pay period
2. Subtract the per-allowance amount (based on pay frequency and the current year’s tables) multiplied by the number of allowances claimed
3. Apply the flat income tax rate to the resulting taxable amount
4. Add any additional withholding the employee requested on their G-4

Supplemental wages (bonuses, commissions): For supplemental wage payments, employers may withhold at the flat rate on the full supplemental amount. Georgia does not require a separate supplemental withholding rate — simply apply the current flat rate to the bonus or commission payment.

Filing Frequency and Due Dates

The Georgia Department of Revenue assigns your filing frequency based on the total amount of state income tax you withhold. Your frequency determines how often you must file returns and remit withheld taxes.

Annual reconciliation: Regardless of your filing frequency, all employers must file Form G-7 (Georgia Annual Return for the Withholding Tax) by February 28 each year. This reconciles the total withholding reported on your periodic returns with the total reported on employees’ W-2 forms.

W-2 filing deadline: W-2s must be filed with the Georgia Department of Revenue and provided to employees by January 31 of the following year.

Georgia Tax Center (GTC)

The Georgia Tax Center (GTC) is the state’s online portal for managing your withholding tax account. Located at gtc.dor.ga.gov, it is the primary platform for filing returns, making payments, and managing your employer tax accounts with the Georgia Department of Revenue.

What you can do through GTC:

• Register for a withholding tax account if you are a new employer
• File withholding tax returns (monthly, quarterly, or annual)
• Make tax payments electronically via ACH debit or credit card
• File Form G-7 (annual reconciliation)
• Submit W-2 information electronically
• View account history, payment records, and correspondence
• Set up electronic funds transfer (EFT) for recurring payments
• Update business information (address, contact, responsible party)

Most employers are encouraged to use GTC for all filings and payments. Electronic filing is faster, provides immediate confirmation, and reduces the risk of errors compared to paper filings. If you are a new employer, registering through GTC is the fastest way to get your withholding tax account established.

GA-V Payment Voucher

Form GA-V is the payment voucher used when remitting Georgia income tax withholding by check or money order. If you make payments through GTC electronically, you do not need to use Form GA-V.

Key points about the GA-V voucher:

• Include with each payment: Attach a completed GA-V form to every check or money order payment to ensure proper crediting to your withholding tax account
• Available on GTC: You can generate pre-filled GA-V vouchers through your GTC account
• Mail to the address specified on the form — the mailing address may differ from other DOR correspondence
• Electronic payments are preferred: The DOR encourages electronic payment through GTC, which eliminates the need for GA-V entirely and provides faster processing

If you are currently using paper GA-V vouchers, consider transitioning to electronic payments through GTC. Electronic payments post faster, provide a digital confirmation trail, and reduce the risk of payments being lost or delayed in the mail.

Penalties for Late Filing or Payment

Georgia imposes penalties and interest on employers who file late, pay late, or fail to withhold the required amount of state income tax. Understanding these penalties is important for maintaining compliance.

• Late filing penalty: 5% of the tax due per month (or partial month) that the return is late, up to a maximum of 25% of the tax due
• Late payment penalty: 0.5% of the unpaid tax per month (or partial month) that the payment is late
• Interest: Charged on all unpaid balances from the original due date until the date of payment, at a rate determined annually by the DOR
• Failure to withhold: If an employer fails to withhold state income tax from employee wages, the employer is liable for the full amount that should have been withheld — you cannot pass this liability back to the employee

Frequently Asked Questions