(The Center Square) – Georgia ranked 12th in the American Legislative Exchange Council’s annual “Rich States, Poor States” report, receiving its lowest marks for its property tax burden.
Georgians pay $27.50 per $1,000 of personal income, which is 28th among the 50 states.
The General Assembly has considered several bills in recent years addressing high property taxes levied by cities, counties and local school boards. House Speaker Jon Burns proposed eliminating the homestead tax altogether at the beginning of the 2026 legislative session.
The Legislature adjourned April 2 without passing a bill that would have halted property tax increases at 3% or the rate of inflation, whichever was greater. Burns announced a committee will study local taxation, funding and budgeting while the General Assembly is not in session.
Georgia ranked 25th for its 5.19% personal income tax rate, based on data as of Jan. 1, 2025. The General Assembly passed a bill that will lower the rate to 3.99% over the next eight years as long as certain revenue conditions are met.
The Peach State ranked 23rd in corporate tax rates and 22nd in sales tax rates.
“Each of these factors is influenced directly by state lawmakers through the legislative process,” the authors of the report said. “Generally speaking, states that spend less – especially on income transfer programs – and states that tax less –particularly on productive activities such as working or investing – experience higher growth rates than states that tax and spend more.”
Three of Georgia’s neighboring states fared better in the report. Tennessee took second place, North Carolina fourth and Florida 10th. Two border states ranked lower – South Carolina at 21st and Alabama at 26th.
Georgia fared better in economic performance, coming in 10th. The state’s cumulative gross domestic product ranks 8th, and non-farm employment growth ranks 11th.
The report shows 514,740 people moved to Georgia from another state between 2015 and 2024, placing Georgia sixth.
