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17 June 2026

Georgia Department of Revenue releases revised withholding formula reflecting lower income tax rate for 2026

The Georgia Department of Revenue has issued an updated Employer's Withholding Guide (Rev. June 2026), which contains the revised withholding formula and tables resulting from the decrease in the personal income tax rate effective retroactive to January 1, 2026. The updated withholding formula/tables apply immediately.

Background

Under H.B. 463, and effective retroactive to January 1, 2026, Georgia's personal income tax rate is reduced from 5.19% to 4.99%, with additional annual decreases of 0.125% until the rate reaches 3.99%.

The law also increased the standard deduction to $15,000 for taxpayers filing single/head of household/married filing separate and to $30,000 for taxpayers married filing joint.

Ernst & Young LLP insights

Employers should consider notifying employees living and/or working in Georgia of the change in the state income tax and withholding rate and suggest they review their Form G-4, Employee's Withholding Allowance Certificate.

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Contact Information

For additional information concerning this Alert, please contact:

Workforce Tax Services - Employment Tax Advisory Services

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2026-1294

 

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