Here’s How Tax-Friendly Georgia Is: Kiplinger

ATLANTA, GA — While it prides itself on being the economic engine of the Southeast, Georgia is labeled as a state with a mixed tax picture thanks to modest property taxes coupled with high sales tax and taxes on groceries.

The designation comes from Kiplinger’s tax map for 2019, which was updated in October. The map divides states up into five categories for taxes: most tax-friendly, tax-friendly, mixed, not tax-friendly and, finally, least tax-friendly.

According to the map, the most tax-friendly state in the country is Wyoming, where there is no state income tax and a 0 percent effective income tax rate. Two other states out West — Nevada and Alaska — along with Tennessee and Florida rounded out the top five spots for the most tax-friendly states.

"Georgia’s tax brackets mean that many taxpayers will find themselves paying the top marginal rate, which kicks in at just $10,000 of taxable income for married couples filing jointly or $7,000 for individual filers," Kiplinger writes. "For tax year 2019, the top rate dropped 6% to 5.75%. It is slated to drop further, to 5.5% in 2020, if Georgia lawmakers and the governor pass a joint resolution reaffirming that rate during the 2020 legislative session."

Here’s what makes Georgia one of the mixed-tax-picture states in the nation:

• Sales tax: 4% state levy. Localities can add as much as 5%, and the average combined rate is 7.33%, according to the Tax Foundation. While the state doesn’t tax grocery food sales, localities can.
• Effective tax rate: 5.24% for single filers, 5.8% for joint filers.For tax year 2019, the high rate is 5.75%. It will drop further in 2020, to 5.5%, if the governor and legislature reconfirm the reduction in that year’s legislative session.
• Property taxes: In Georgia, residents pay an average of $1.000 in taxes per $100,000 of assessed home value.
• Vehicle taxes: Georgia levies a tax of 7% at registration. Electric vehicles are subject to a $200 annual licensing fee.
• Inheritance and estate taxes: None.

See your state’s full tax profile.

Illinois topped Kiplinger’s list as the least tax-friendliest state in the nation. Along with Wisconsin, the tri-state area consisting of Connecticut, New York and New Jersey, made up the remainder of the top five least-friendliest states in the U.S.

Kiplinger used tax data from each state’s tax agency, the U.S. Census and other sources to compare each state’s tax burden. The tax-friendliness was calculated based on the sum of income, sales and property tax that a sample filer paid in each state. The full methodology and the profile of the sample filers are found on Kiplinger’s website.