Georgia Reduces Withholding Rate, Creates Tip, OT Deductions

Georgia’s flat withholding rate was reduced following the state’s recent income tax cut, while reporting of tips and overtime will come to the state’s withholding returns in 2027, the state revenue department said June 8.

In the withholding methods, the tax rate was reduced to 4.99%, from 5.19%, and standard deductions were increased to $30,000 annually, from $24,000, for the married filing jointly status and to $15,000 annually, from $12,000, for other statuses, the department said. The dependent allowance also increased to $5,000 annually, from $4,000, the department said.

The changes were made in HB 463, which was ...