Georgia

State & Local Taxes in 2015

 

Georgia Tax Code Features

Progressive Features

• State sales tax base excludes groceries

Regressive Features

• Provides an income tax deduction for state income taxes paid

• Fails to provide refundable income tax credits to offset sales, excise, and property taxes

• Fails to index income tax provisions to inflation

• Local sales tax bases include groceries

• Fails to use combined reporting as part of its corporate income tax

Tax Changes Enacted in 2013 & 2014

• New constitutional cap on the top income tax rate (cannot exceed 6 percent)

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index,Georgia has the 22nd most unfair state and local tax system in the country. States with regressive tax struc­tures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details).

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