According to a recent study by WalletHub, Georgia has one of the 20 lowest tax burdens in the nation.
The nationwide report on 2017 tax burdens by state found the Peach State in the middle of the pack (no. 26 ranking) for property tax (2.8 percent) and income tax (2.29 percent) and at 34th for state sales and excise taxes. Overall, Georgia came out at no. 32.
During the recent legislative session, there was an effort to lower income taxes, but the measure failed to pass both chambers. House Bill 329, as approved by the House, would have decreased the state’s top income tax rate to 5.4 percent from 6 percent. On the Senate side, legislators amended the bill so that the flat rate would have been lowered to 5.65 percent instead of 5.4. Lawmakers could not reach an agreement on the proposal by the end of session, however.
Meanwhile, another study also found Georgia in the top 20. The 2017 Rich States, Poor States: ALEC-Laffer State Economic Competitive Index is published annually by the American Legislative Exchange Council Center for State Fiscal Reform, and it ranks states according to 15 different state policy variables. Georgia came in 18th for economic outlook and 16th for economic performance. The contributing factors?
- Top marginal personal income tax rate (27th rank)
- Top marginal corporate income tax rate (16th)
- Personal income tax progressivity (23rd)
- Property tax burden (25th)
- Sales tax burden (28th)
- Remaining tax burden (1st)
- Estate/inheritance tax levied (1st)
- Recently legislated tax changes (44th)
- Debt service as a share of tax revenue (22nd)
- Public employees per 10,000 of population (15th)
- State liability system survey (31st)
- State minimum wage (1st)
- Average workers’ compensation costs (24th)
- Right to work legislation (1st)
- Tax expenditure limits (34th)
- Cumulative GDP growth (38th)
- Cumulative domestic migration (5th)
- Non-farm employment growth (20th)
