Important Tax Updates

Important Dates

The Georgia Department of Revenue will begin processing 2025 individual income tax returns on Monday, February 2, 2026.

Individuals

  • The deadline to file 2025 individual income tax returns, without an extension, is April 15, 2026
  • Most refunds are issued within 3 weeks from the date a return is received by the Department. However, it may take up to 12 weeks to process
  • First-time filers and those who have not filed in five or more years will receive a paper refund check

Businesses

  • W-2 and 1099-MISC with non-employee compensation (NEC) income statements are due on or before January 31st of the following year.
  • All other 1099 income statements are due on or before February 28th of the following calendar year.
  • If the due date falls on a weekend or holiday, the return is due the next day that is not a weekend or holiday.

2024 Income Tax Changes

  • Effective July 1, 2025, the income tax rate is 5.19%
  • Personal exemptions have been repealed except for the $4,000 dependent exemption
  • Georgia standard deductions have increased to $24,000 for Married filing jointly returns and $12,000 for Single, Head of household, Married filing separately, and Qualifying surviving spouse returns
  • Georgia Resident Itemizer Tax Credit: Full-year and part-year residents who itemize their deductions shall be entitled to a credit up to the amount of $300 per taxpayer. 
    The credit is available to “any resident taxpayer.”
    • Resident is defined in the O.C.G.A. 48-7-1 as every individual who is a legal resident of GA on income tax day, income tax day defined by this statute as December 31st.
  • Retirement Income Exclusion Change: Taxpayers can now exclude up to $5,000 of earned income when they claim the retirement income exclusion
  • Exclusion of PTSD Benefits Received by First Responders: To the extent insurance benefit payments for occupational PTSD received by a first responder are included in the Federal AGI, it is exempt from Georgia taxation. However, insurance coverage for first responders’ occupational PTSD does not begin until January 1, 2025
  • Qualified Payments to Classified Subcontractors: Effective January 1, 2024, a corporation that is a party to state contracts may subtract from Federal taxable income 10% of qualified payments to classified subcontractors. A classified subcontractor is defined as a small business certified as a minority business enterprise, women-owned business, or veteran-owned business

Tax Credits Updates

  • Credit 154: Rural Healthcare Professional Credit - Definition of a rural county changed
  • Credit 152: Historic Rehabilitation Credit for Historic Homes - Extended through 2029
  • Credit 153: Historic Rehabilitation for Other Certified Structures – Extended through 2029
  • Credit 142: Rural Zone Credit - Extended through 2032
  • Credit 140: Qualified Education Donation Credit - Increase in maximum donation amounts; Extended through 2029
  • IND-CR 207: Rural Physicians Credit - Definition of a rural county changed

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