(The Center Square) – Georgia ranks 22nd on the Tax Foundation’s annual State Tax Competitiveness Index, with property taxes receiving the lowest marks.
Property taxes are not set by the state, but rather by local cities, counties and school boards. Georgia ranks higher than all of its neighbors except Florida, with the highest property taxes paid as a percentage of owner-occupied housing value at 0.77% in 2023, an increase from 0.69% in 2022, according to the Tax Foundation.
Georgia ranks 38th in the tax competitiveness index for property taxes.
Voters approved a measure in 2024 that would have curbed property tax increases by freezing property tax assessments at the rate of inflation. Cities and counties could enact a new penny sales tax to offset property taxes.
But baked into the bill was an option that allowed cities, counties and school boards to opt out of freezing assessments. More than 35% of local entities did, according to the Tax Foundation.
The index places the Peach State at 16th for individual income taxes. The current rate is 5.19%. It will gradually wind down to 4.99% by 2028.
A Senate panel is examining ways to eliminate income taxes. The committee will make its recommendations to the General Assembly at the end of the year.
Georgia’s neighbors to the north and south, Tennessee and Florida, do not have a state income tax. Alabama and North Carolina’s income tax rates are lower than Georgia’s, according to the report.
Georgia placed 18th for its sales tax in the Tax Foundation’s report.
“Georgia’s state sales tax rate is relatively low at 4%, but localities are authorized to impose local sales taxes, with an average rate of 3.44%, bringing the combined rate to 7.44%, which is above the national average,” the report said. “Georgia does not impose inheritance, estate, or gift taxes.”
The state received its highest marks for its corporate tax rate, ranking 9th.
“Since 2024, Georgia’s corporate income tax rate has been aligned with the individual income tax rate and is set to decrease from the current 5.19% to 4.99% by 2028,” the reports said. “However, the state does not allow first-year expensing of capital investment and imposes a nuisance capital stock tax of up to $5,000 per year.”
Wyoming, South Dakota, New Hampshire, Alaska and Florida rounded out the top five in the state tax competitiveness index. Tennessee ranked eighth.
The lowest-ranking state in the report is New York, followed by New Jersey, California, Connecticut, and Maryland.
🛑 🛑 🛑
Before You Dismiss This Article…
We live in a time when information feels overwhelming, but here’s what hasn’t changed: facts exist whether they comfort us or not.
When A&W launched their third-pound burger to compete with McDonald’s Quarter Pounder in the 1980s, it failed spectacularly. Not because it tasted worse, but because customers thought 1/3 was smaller than 1/4. If basic math can trip us up, imagine how easily we can misread complex news.
The press isn’t against you when it reports something you don’t want to hear. Reporters are thermometers, not the fever itself. They’re telling you what verified sources are saying, not taking sides. Good reporting should challenge you — that’s literally the job.
Next time a story makes you angry, pause. Ask yourself: What evidence backs this up? Am I reacting with my brain or my gut? What would actually change my mind? And most importantly, am I assuming bias just because the story doesn’t match what I hoped to hear.
Smart readers choose verified information over their own comfort zone.
Kim Jarrett | The Center Square
Kim Jarrett's career spans over 30 years with stops in radio, print and television. She has won awards from both the Georgia Press Association and the Georgia Association of Broadcasters.
