Capital Gains Tax in Georgia (2026)
Georgia has no special capital gains rate — the state taxes your gain as ordinary income at a flat ~5.19% (est.), stacked on top of the federal 0/15/20% tax and the 3.8% NIIT. Run the combined number below.
Reviewed & updated · 2026 tax-year figures · Federal + Georgia state
Georgia does not have a preferential long-term capital gains rate. Under O.C.G.A. §48-7-20, both short- and long-term gains are taxed as ordinary income at Georgia's flat rate — about 5.19% for 2026 (est.), stepping down from 5.39% in 2024 toward a 4.99% target. That state tax is added on top of the federal capital gains tax (0/15/20% long-term under IRC §1(h)) and the 3.8% NIIT (§1411). A top-bracket Georgian can face a combined rate near 29% on a long-term gain.
Net proceeds $177,910$22,090
Show our work federal + GA, step by step
Estimates only, for the 2026 tax year. Not tax advice. Georgia's flat rate is set on a statutory step-down schedule; the 5.19% figure used here is a projected 2026 amount, marked est. and owner-verifiable against the final Georgia Department of Revenue release.
How does Georgia tax capital gains?
Georgia is one of the states that gives capital gains no break at all. Under O.C.G.A. §48-7-20, a capital gain is simply part of your Georgia taxable income and is taxed at the same rate as wages. There is no equivalent of the federal 0/15/20% long-term schedule and no distinction between short-term and long-term at the state level. Whether you held the asset a week or a decade, Georgia taxes the whole gain as ordinary income.
What makes Georgia different from a graduated-bracket state like California is that Georgia now applies a single flat income-tax rate. House Bill 1437 replaced Georgia's old bracket schedule with one flat rate that steps down over time — it was 5.39% for 2024 and is scheduled to fall by roughly 0.10 points per year toward a 4.99% target, subject to revenue conditions. For the 2026 tax year we model about 5.19% (est.). That means your Georgia tax on a gain is refreshingly easy to picture: it is simply the gain multiplied by the flat rate.
How does Georgia stack on top of federal?
The two systems run in parallel and the amounts are added — Georgia does not replace or absorb the federal tax. For a long-term gain, you owe:
- Federal: 0%, 15%, or 20% depending on where the gain stacks on your taxable income, under IRC §1(h);
- Federal NIIT: an extra 3.8% on net investment income once MAGI passes $200,000 (single) / $250,000 (joint), under IRC §1411; and
- Georgia: the flat state rate, ~5.19% (est.), on the full gain under O.C.G.A. §48-7-20.
Add those together and a top-bracket Georgian with a long-term gain can pay roughly 20% + 3.8% + 5.19% ≈ 29%. A short-term gain is worse, because the federal side jumps to ordinary rates (up to 37%) instead of 20%. The calculator above computes each layer separately and shows you the exact bands.
What is Georgia's flat income-tax rate for 2026? (est.)
Because Georgia is flat, there is only one rate to know — but that rate steps down each year on the statutory schedule. Here is the trajectory, with 2026 marked as a projected amount (est.), owner-verifiable against the Georgia Department of Revenue.
| Tax year | Georgia flat rate |
|---|---|
| 2024 | 5.39% |
| 2025 | 5.29% (est.) |
| 2026 — modeled here | 5.19% (est.) |
| Phased target | 4.99% |
How this calculator works & where the numbers come from
No black box. The federal side uses the same unit-tested engine as our main calculator: net gain = proceeds − basis; classify by holding period; for long-term gains, subtract the standard deduction and stack the gain across the 0/15/20% bands per IRC §1(h); add 3.8% NIIT where modified AGI crosses the §1411 threshold; short-term gains are computed as the true marginal difference in ordinary tax. The Georgia side takes the same taxable gain (after any §121 exclusion, since Georgia begins from federal AGI) and multiplies it by Georgia's flat income-tax rate under O.C.G.A. §48-7-20 — about 5.19% for 2026 (est.). Because the state rate is flat, there is no bracket stacking on the Georgia side: the full gain is taxed at one rate. The two results are summed.
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Primary sources (linked, not just named)
- O.C.G.A. §48-7-20 — individual income-tax rate
- Georgia Department of Revenue — individual taxes
- Georgia Department of Revenue — home
- 26 U.S.C. §1(h) — federal capital gains rates
- 26 U.S.C. §1411 — 3.8% NIIT
- 26 U.S.C. §121 — home-sale exclusion
- IRS Topic No. 409 — Capital Gains and Losses
- IRS Publication 550 — Investment Income
Georgia capital gains tax, answered
Does Georgia have a separate capital gains tax rate?
No. Georgia has no preferential capital gains rate. Under O.C.G.A. §48-7-20, a capital gain — short-term or long-term — is taxed as ordinary income at Georgia's flat individual rate, about 5.19% for 2026 (est.), down from 5.39% in 2024. The federal short/long distinction does not exist at the Georgia level.
How much is capital gains tax in Georgia for 2026?
Your Georgia tax equals the gain multiplied by the flat rate (~5.19% est.), added to the federal capital gains tax. Federally, a long-term gain is taxed at 0/15/20% (IRC §1(h)) plus 3.8% NIIT for high earners. A mid-income Georgian might pay roughly 15% federal + ~5.19% state; a top earner can pay near 20% + 3.8% + 5.19% ≈ 29% combined. Use the calculator above for your exact figure.
How does Georgia capital gains tax stack on top of federal?
They are computed separately and summed. The federal side taxes long-term gains at 0/15/20% and adds 3.8% NIIT for high earners; short-term gains are ordinary income. Georgia ignores the holding period and taxes the entire gain as ordinary income at its flat rate. Your total tax is federal + NIIT + Georgia.
Why is Georgia's flat rate changing each year?
Georgia replaced its graduated brackets with a single flat rate that steps down over time. House Bill 1437 set the rate at 5.39% for 2024, scheduled to fall by roughly 0.10 points per year toward a 4.99% target, subject to revenue conditions. For 2026 we model about 5.19% (est.); the calculator applies that flat rate to your entire gain, and you can verify the final figure against the Georgia Department of Revenue.
Does the 3.8% federal NIIT apply to Georgians?
Yes — the NIIT is federal and applies in every state. Once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), the 3.8% surtax under IRC §1411 hits the lesser of your net investment income or the amount over the threshold. It is added to your federal capital gains tax and is entirely separate from Georgia state tax.
Does Georgia conform to the $250k/$500k home-sale exclusion?
Yes. Because Georgia begins from federal AGI, the IRC §121 exclusion carries through. Up to $250,000 of gain ($500,000 married filing jointly) on a primary residence is excluded for both federal and Georgia purposes if you owned and used the home for two of the last five years. Only gain above the exclusion is taxed by Georgia, at its flat rate. See our home-sale hub for the mechanics.
Compare Georgia to other state hubs
Georgia's flat ~5.19% (est.) sits in the middle of the pack: much lighter than California, which taxes gains as ordinary income up to 13.3%, but heavier than the no-income-tax states like Texas and Florida, where the state adds nothing at all. New York lands well above Georgia. Every state page combines the same unit-tested federal engine with that state's own rules, so you always see the full combined number, not just half of it. Until your state's page is live, the main Capital Gains Tax Calculator lets you fold any state's rate into your federal receipt.