Employers in Georgia are required to deduct the state income tax from the earnings of relevant employees and to return the tax to the Georgia Department of Revenue. Georgia cut the individual income tax rate to 4.99% in 2026 and boosted the standard deduction and the deduction for dependents.

These changes directly affect payroll withholding calculations. Employers should use current Georgia withholding tables or the percentage method, employee Form G-4 information, and the correct 2026 deduction amounts when processing payroll.

• Georgia’s 2026 individual income tax rate is 4.99%, reduced from the previous 5.19% rate.  

• Employers should use the 2026 Georgia withholding tables or percentage method along with each employee’s Form G-4.  

• The 2026 standard deduction is $15,000 for single, head of household, and married filing separately, and $30,000 for married filing jointly.  

• The dependent deduction is $5,000 per qualifying dependent.  

• Georgia withholding should not be calculated by simply applying 4.99% to gross wages; applicable deductions and allowances must be considered.  

• Employers must follow the appropriate deposit and filing schedules based on withholding liability.  

• Georgia’s treatment of tips and overtime differs  from federal rules, making accurate payroll classification and year-end reporting especially important.

What Is the Georgia Income Tax Rate for 2026? 

Georgia has a 4.99% flat individual income tax rate for tax year 2026. The rate was reduced from 5.19% under legislation signed in May 2026. 

Because the legislation took effect during the year, Georgia instructed employers to continue withholding at 5.19% before the change became effective and allowed employers to begin using the new 4.99% withholding rate starting May 11, 2026. 

Employers reviewing 2026 year-to-date payroll records should therefore be aware that withholding from earlier pay periods may have been calculated under the previous rate.

Who Is Subject to Georgia Income Tax Withholding?

Employers generally withhold Georgia income tax from wages paid to Georgia residents and from applicable wages earned in Georgia by nonresident employees. Georgia defines withholding tax as the amount withheld from employee wages and paid directly to the state by the employer. 

Withholding usually happens when more than 5% of an employee’s total earned income comes from Georgia or when more than $5,000 of their wages comes from Georgia. This is true for nonresident employes working in Georgia. 

Businesses with workers in more than one state may need to pay extra attention to this rule. 

What Is Georgia Form G-4? 

Form G-4, Employee’s Withholding Allowance Certificate, is completed by employees and submitted to their employer so Georgia income tax can be withheld from their wages. 

Employers use the employee’s withholding information together with the Georgia tax tables or percentage method when calculating state withholding. 

Employers should retain current employee withholding information and update payroll when an employee submits a new Form G-4. 

2026 Georgia Standard Deduction and Dependent Deduction 

Georgia increased its standard deduction and dependent deduction for 2026. 

The annual dependent deduction is $5,000 for each applicable dependent. 

For payroll withholding, Georgia converts these annual amounts into amounts appropriate for weekly, biweekly, semi-monthly, monthly, and other payroll frequencies. 

How Is Georgia Income Tax Withholding Calculated?

Employers may use Georgia’s withholding tables or percentage method. 

Under the 2026 percentage method, the basic calculation is: 

The remaining amount is then multiplied by 4.99%.

Georgia Payroll Withholding Example

Georgia Payroll Withholding Example

The Georgia Department of Revenue provides an example involving a married employee who:

• Earns $2,000 semi-monthly
• Files married filing jointly
• Has a spouse who does not work
• Claims one dependent

The semi-monthly standard deduction is $1,250, and the dependent allowance is $208.33.

 The Georgia income tax withheld for that pay period is therefore $27.03.

This example shows why employers should not simply multiply an employee’s gross pay by 4.99%.

Georgia Withholding Deposit and Filing Schedules

Georgia assigns withholding requirements based on how much tax an employer withholds.

Monthly payers generally remit withholding by the 15th day of the following month. Quarterly payers generally remit by the last day of the month following the end of the quarter. 

For semi-weekly payers, the deadline depends on the payday. Wednesday-through-Friday payrolls are generally due the following Wednesday, while Saturday-through-Tuesday payrolls are generally due the following Friday. 

Georgia also has a $100,000 one-day rule. If $100,000 or more must be withheld for a payday, the payment generally must be deposited electronically by the next banking day.

What Are Forms G-7 and G-1003? 

Form G-7 is used for Georgia withholding-tax reporting. The filing frequency depends on the employer’s payer status. 

Form G-1003 is the Georgia Withholding Income Statement Return used with applicable year-end income statements such as Forms W-2 and certain Forms 1099. 

For 2026 income statements, the Georgia Employer’s Tax Guide lists February 1, 2027 as the deadline for W-2/1099-NEC reporting with Form G-1003 because the normal January 31 deadline falls on a weekend. 

How Does Georgia Treat Tips and Overtime in 2026? 

Georgia did not fully adopt the federal One Big Beautiful Bill treatment of tips and overtime. 

Instead, Georgia states that up to $1,750 each of qualifying overtime compensation and qualifying tipped wages may be excluded when calculating Georgia taxable net income. 

However, employers should not automatically remove those amounts from normal 2026 Georgia payroll withholding. 

The Georgia Department of Revenue instructs employers to continue following existing withholding, deposit, and Form G-7 procedures for 2026 unless separate withholding guidance is issued. Qualified overtime compensation and cash tips must instead be reported with applicable year-end income statements and Form G-1003. 

This is an important distinction between federal tax treatment and Georgia state tax treatment.

Common Georgia Payroll Mistakes to Avoid

Employers should avoid: 

• Using the old 5.19% rate for current 2026 payroll after the rate change 

• Applying the 4.99% rate directly to gross wages without considering withholding deductions and allowances 

• Using outdated standard deduction amounts 

• Forgetting the $5,000 dependent allowance 

• Using outdated deposit thresholds 

• Missing or incorrectly applying employee Form G-4 information 

• Treating Georgia’s tip and overtime rules exactly the same as the federal rules 

• Waiting until year-end to organize payroll records needed for Forms W-2, G-7, and G-1003 

Using the current Georgia Employer’s Tax Guide helps employers avoid relying on tax tables and thresholds from previous years.

Conclusion 

Georgia payroll withholding changed substantially in 2026. The state individual income tax rate is now 4.99%. The standard deduction has risen to $15,000/$30,000 depending on filing status and the dependent deduction has increased to $5,000. 

Employers should determine employe withholding using current Form G-4 information and the Georgia Department of Revenue’s 2026 withholding tables or percentage approach. They should also consider deposit schedules, year-end reporting, and the different handling of eligible tips and overtime in Georgia.