18 June 2025 Georgia income tax withholding formula and tables updated to reflect retroactive tax cut for 2025 The Georgia Department of Revenue has updated its state income tax withholding formula and tables to reflect a reduction to the state's personal income tax rate retroactive to January 1, 2025. The updated withholding calculations apply to wages paid on and after July 1, 2025. On April 15, 2025, Georgia Governor Brian Kemp signed into law H.B. 111, which retroactive to January 1, 2025, lowers the state's income tax rate from 5.29% to 5.19%, accelerating the largest tax cut in Georgia's history. (Governor Kemp press release, 4-15-2025.) Consistent with existing law, and provided revenue goals are met, H.B. 111 calls for a further reduction in the tax rate of 0.10% annually starting in 2026 until the tax rate reaches 4.99%. (See Tax Alert 2025-0930.) Employers should consider notifying employees living and/or working in Georgia of the change in the state income tax rate and suggest they review their Form G-4, Employee's Withholding Allowance Certificate.
Document ID: 2025-1288 | ||||
