Georgia individual income tax on Form 500 for 2026 and 2025: the flat rate cut by HB 463, standard deduction and dependent exemption, retirement and military retirement exclusions, 2026 overtime and tips exclusions, HB 1199 conformity and the bonus depreciation add-back, the HB 1000 surplus refund, Schedule 3 proration, estimated tax and penalties.
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| Item | Tax year 2025 | Tax year 2026 |
|---|---|---|
| Flat rate on Georgia taxable income | 5.19% (HB 111) | 4.99% (HB 463) |
| Standard deduction, married filing jointly | $24,000 | $30,000 |
| Standard deduction, single, head of household or married filing separately | $12,000 | $15,000 |
| Dependent exemption, per dependent | $4,000 | $5,000 |
| Personal exemption for taxpayer or spouse | None | None |
This Guide covers the Georgia individual income tax return, Form 500, for tax year 2026 (returns filed in 2027). It has a dated section for 2025 returns. It is for residents, part-year residents and nonresidents with Georgia income, including sole proprietors and single-member LLC owners whose business profit reaches Georgia through federal adjusted gross income (AGI).
Figures are for tax year 2026 unless labelled 2025. The 2026 rate, standard deduction and dependent exemption come from HB 463 (2026), which applies to taxable years beginning on or after 1 January 2026. The 2026 IT-511 booklet was not out on 25 September 2026, so rules found only in the 2025 booklet are labelled 2025.
It does not cover the pass-through entity's own return or the pass-through entity (PTE) tax election (see the Guide ga-corporate-and-ptet), corporate income or net worth tax, fiduciary returns (Form 501), employer withholding, or tax credits beyond those named here. See "When to refuse or refer".
Who must file (2025 rules, DOR residency filing requirements).
Full-year resident. Must file if any of these is true:
This applies "as long as your legal residence is Georgia, even if you are absent from or live outside the State temporarily".
Part-year resident (a legal resident of Georgia for only part of the year). Must file if required to file a federal return, and completes Schedule 3.
Nonresident who works in Georgia or has Georgia-source income (for example wages, Georgia lottery winnings, flow-through income or rents). Must file if required to file a federal return. The exception is a legal resident of another state whose only Georgia activity is working as an employee: they need not file if that pay does not exceed the lesser of five percent of their pay from all places or $5,000.
2026 thresholds were not published by DOR at the time of writing; check the 2026 IT-511.
Residency. Form 500 Line 4 codes are full-year resident (lived in Georgia the entire year, "regardless of temporary living arrangements"), part-year resident and nonresident. DOR describes residency as "legal residence" (domicile); the statute (O.C.G.A. § 48-7-1) has more tests, so treat doubtful cases as referrals.
ga-corporate-and-ptet for the entity side.Form 500 line numbers are from the 2025 return (2025 IT-511 booklet). Part-year residents and nonresidents skip Lines 9 to 14 and use Schedule 3 (step 9).
| Item | Tax year 2025 | Tax year 2026 |
|---|---|---|
| Flat rate on Georgia taxable income | 5.19% (HB 111) | 4.99% (HB 463) |
| Standard deduction, married filing jointly | $24,000 | $30,000 |
| Standard deduction, single, head of household or married filing separately | $12,000 | $15,000 |
| Dependent exemption, per dependent | $4,000 | $5,000 |
| Personal exemption for taxpayer or spouse | None | None |
How the rate got here. HB 111 (2025) set 5.19% for 2025, with 0.10-point cuts each year from 2026 until the rate reached 4.99%. HB 463 (2026) replaced that path. The rate is 4.99% "for taxable years beginning on or after January 1, 2026". From 1 January 2027 it falls by 0.125 of a point each year until it reaches 3.99%.
Each future cut can be delayed. A scheduled cut is delayed by one year for each year that any of these is true as of 1 December:
The Office of Planning and Budget reports by 1 December each year; do not quote a 2027 rate before then.
Scheduled increases from 2027, subject to the same delay tests: the joint standard deduction by $750 a year to $36,000; the single, head of household and married filing separately deduction by $375 a year to $18,000; the dependent exemption by $125 a year to $6,000.
Qualifying surviving spouse used the single amount for 2025 ($12,000, per the 2025 booklet). HB 463 does not name this status, so confirm the 2026 amount in the 2026 booklet.
The 2026 Form 500-ES worksheet still prints the 2025 amounts ($12,000, $24,000, $4,000). Use the HB 463 amounts for 2026 estimates (2026 Form 500-ES).
| Taxpayer | Maximum exclusion, 2025 and 2026 | From 2027 (HB 463) |
|---|---|---|
| Age 62 to 64, or under 62 and permanently disabled | $35,000 | $35,000 |
| Age 65 or older | $65,000 | $70,000 |
Each spouse qualifies separately. A joint return can carry two exclusions, but only if each spouse meets the age or disability test in their own right. Jointly owned income is split 50/50. Otherwise, income belongs to the spouse who owns the item.
Disability route (under 62). The taxpayer must be permanently disabled "to such an extent that they are unable to perform any type of gainful employment". The date of disability is required on the return.
What counts as retirement income: interest, dividends, alimony, capital gains, other income, taxable IRA distributions and pensions, and rent and royalties. Earned income can make up no more than $5,000 of the exclusion (2025 booklet, Schedule 1 page 2). Earned income includes wages, self-employment income, rental, royalty or partnership income subject to self-employment tax, and S corporation income where the taxpayer materially participated.
What does not count:
Part-year residents and nonresidents prorate the exclusion in two parts:
Both ratios are computed as if the taxpayer were a full-year resident.
The 2027 increase applies only to the 65-and-older amount. HB 463 limits the $35,000 and $65,000 division to years "ending on or before December 31, 2026".
Georgia did not adopt the federal deductions for tips and overtime from P.L. 119-21. It has its own, smaller exclusions, both starting with taxable years beginning on or after 1 January 2026:
Both paragraphs "stand repealed and reserved on December 31, 2028", and neither applies to 2025 returns. DOR had not published the 2026 Schedule 1 line for them at the time of writing.
Conformity date. HB 1199 was signed on 20 March 2026. It updates the Georgia definition of the Internal Revenue Code to federal law "enacted on or before January 1, 2026". Section 1 applies "to all taxable years beginning on or after January 1, 2025". So 2025 and 2026 returns start from an IRC that includes P.L. 119-21 ("OBBBA"), apart from the provisions HB 1199 lists.
The 2025 IT-511 booklet is out of date on this point. It was printed before HB 1199. It says Georgia conforms to the IRC as of 1 January 2025 and has not adopted OBBBA.
Provisions Georgia treats as not in effect include:
Georgia applies sections 163(j) and 174 as they stood before the 2017 federal act.
Below-the-line federal deductions (QBI, the new federal tips, overtime and senior deductions, the federal standard deduction) never reach Georgia, which starts from federal AGI.
Bonus depreciation. Georgia has not adopted "30%, 50%, and 100% bonus depreciation rules, I.R.C. Section 168(k)". Depreciation is computed one way for federal and another way for Georgia:
When a bonus-depreciated asset is sold, the Georgia gain or loss differs from the federal one and needs its own adjustment.
Net operating losses (Georgia rules). Losses from 2018 onward have no carryback and an unlimited carryforward, with the 80% limit based on Georgia taxable net income. Farm losses and certain insurance losses have their own carryback rules.
Who qualifies: an individual who filed Georgia returns for both 2024 and 2025 by the due date of the 2025 return, including any extension. With an extension, that means by 15 October 2026.
Who is excluded: nonresident aliens, estates and trusts, and anyone claimed as a dependent for 2024 unless they had 2024 earned income.
HB 1000 does not exclude ITIN filers. DOR's FAQ answers "Maybe" for them: DOR sends ITIN filers a letter asking for more information to decide whether they qualify, and they reply through the Georgia Tax Center or by mail. So an ITIN filer's refund is not paid automatically.
Amount: the lesser of the 2024 tax liability (2024 Form 500 Line 16, or Form 500EZ Line 4) and a cap by 2024 filing status: $250 single or married filing separately, $375 head of household, $500 married filing jointly. A 2024 liability of $0 means no refund.
Part-year residents and nonresidents get the amount prorated by the 2024 Schedule 3 Line 9 ratio.
How it is paid. For most filers, DOR credits the refund automatically once the 2025 return is filed; there is no claim form. ITIN filers must first answer DOR's letter (above). It is paid using the refund method on the 2025 return, after any offset against debts owed to the state, and carries no interest.
Tax treatment. The refund is not taxable for Georgia. If it is included in federal AGI, subtract it on Schedule 1 (the line 12 adjustment). DOR's FAQ says it may be federally taxable if the client itemized, deducted state income tax and got a federal tax benefit from that deduction.
| Penalty (individual income tax) | Rate | Maximum |
|---|---|---|
| Late filing (O.C.G.A. § 48-7-57) | 5% of the tax not paid by the original due date, plus 5% for each additional month | 25% of the tax due |
| Late payment (§ 48-7-86) | 0.5% of the unpaid tax, plus 0.5% of the outstanding tax for each additional month | 25% of the tax due |
| Negligent underpayment (§ 48-7-86) | 5% of the underpayment | none stated |
| Fraudulent underpayment (§ 48-7-86) | 50% of the underpayment | none stated |
| Frivolous return (§ 48-7-57.1) | $1,000 | $1,000 |
| Underpayment of estimated tax (§ 48-7-120) | 9% per year of the underpayment (Form 500 UET) | none stated |
| Situation | Rule |
|---|---|
| Taxpayer turned 62 during the year | Uses the age-based retirement exclusion, not the military exclusion. The military worksheet asks "Are you under the age of 62?" |
| Taxpayer 61, disabled, can still do some paid work | No retirement exclusion through the disability route. The disability must prevent any type of gainful employment. |
| One spouse 66, the other 60 and not disabled | Only the 66-year-old claims an exclusion. The 60-year-old gets none. |
| Retiree with wages above the earned-income cap | Only $5,000 of the wages counts toward the exclusion. |
| Military retiree under 62 with Georgia earned income of exactly $17,500 | Base exclusion only. The extra amount needs more than $17,500 of Georgia earned income. |
| Hourly part-time worker with overtime in 2026 | No Georgia overtime exclusion (full-time hourly employees only). |
| Nonresident employee whose Georgia pay does not exceed the lesser of 5% of total pay or $5,000 | No Georgia return needed. |
| Estimated tax, prior-year return covered fewer than 12 months | The 100%-of-prior-year option on Form 500 UET is not available. Use 70% of the current year. |
Amounts described as client facts are hypothetical inputs.
Case 1: 2026, single sole proprietor, full-year resident.
Client facts: federal AGI of $80,000, all of it Schedule C profit. No Schedule 1 adjustments, federal standard deduction, no dependents. The 2025 Georgia tax on a 12-month return was $3,000.
Case 2: 2026, married filing jointly, one spouse 66 and one 63, both retired.
Client facts: each spouse has a taxable pension of $60,000, and they have $20,000 of jointly owned interest. Taxable Social Security is $25,000. Federal AGI is $165,000. They took the federal standard deduction. Full-year residents, no dependents.
Case 3: 2025 return, married filing jointly, military retiree aged 50.
Client facts: $40,000 of military retirement pay and $60,000 of Georgia wages. The spouse has no income. Two dependents. Federal AGI is $100,000, and the couple took the federal standard deduction.
Case 4: 2025 return, single, moved into Georgia on 1 July 2025.
Client facts: $100,000 of wages for the year (Schedule 3 Column A), of which $50,000 was earned after the move (Column C). No adjustments, federal standard deduction, no dependents.
Case 5: surplus refund (HB 1000).
Client facts: a full-year resident filing with a Social Security number, not claimed as anyone's dependent for 2024. Filed a 2024 return as head of household, with a 2024 Form 500 Line 16 tax of $300. Filed the 2025 return on 10 April 2026.
ga-corporate-and-ptet.Due date: 15 April (15 April 2026 for 2025; 15 April 2027 for 2026). Fiscal years: the 15th day of the fourth month after year-end.
Extension: file with a copy of federal Form 4868 (or the IRS confirmation) by the extended federal due date, or use Georgia Form IT-303 if there is no federal extension. It does not extend the time to pay; pay by the original due date (Form IT-560 or the Georgia Tax Center) and report it on Line 26.
Electronic filing is required if the return uses a series 100 tax credit, if payments are made by electronic funds transfer, or for a paid preparer whenever the federal return must be e-filed.
Attachments: federal pages 1-2 and Schedule 1 if Line 8 is $40,000 or more or less than the W-2 total; federal Schedule A if itemizing; the other state's return for the other-state credit.
Estimated tax: who must pay. Anyone who reasonably expects gross income to exceed the dependent exemptions plus estimated deductions plus $1,000 of income not subject to withholding, unless the employer withholds extra by agreement to cover it.
Estimated tax: due dates: 15 April, 15 June, 15 September and 15 January of the next year. If the requirement is first met later in the year, fewer installments are due. Farmers and fishermen (at least two thirds of gross income) may instead file and pay in full by 1 March.
Underpayment penalty (Form 500 UET). The required installment is the lesser of:
The penalty is 9% a year on the shortfall. Three exceptions can remove it:
Payment. Pay through the Georgia Tax Center (gtc.dor.ga.gov), or by check payable to the Georgia Department of Revenue with Form 525-TV (balance due) or Form 500-ES (estimates). Payment agreements of up to 60 months are available once every return has been filed.
Refund claims must be made within three years from the later of the date the tax was paid or the return's due date, including extensions.
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