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Georgia Capital Gains Tax

Georgia taxes capital gains as ordinary income using its flat rate.

Why It Matters

Understanding how Georgia taxes capital gains helps you estimate the true cost of selling investments, plan asset sales, and compare after-tax returns across states.

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How It Works

The calculator computes both your federal capital gains tax and Georgia state tax to show your combined burden. Enter your gain amount, other income, and filing status.

Example

Single filer • $10,000 long-term gain • $100,000 other income • 2025

Federal

$1,500

15.00% rate

Georgia

$499

4.99% rate

Total

$1,999

19.99%

Resources

Georgia Capital Gains Tax Information

Official Georgia tax information relevant to capital gains, including rates, forms, and filing resources.

Source: Georgia Tax Authority

Frequently Asked Questions

Does Georgia have a lower rate for long-term gains?

No. Unlike the federal government, Georgia does not offer a preferential rate for long-term capital gains. All gains are taxed at the flat 5.0% rate.

What is Georgia's capital gains tax rate?

Georgia taxes capital gains as ordinary income at a flat rate of 5.0%. This applies to both short-term and long-term gains at the state level.

What is the combined capital gains tax rate in Georgia?

The maximum combined rate is 28.8% (federal 20% + NIIT 3.8% + state 5.0%). Lower-income filers may qualify for the 0% or 15% federal rate.

Key Terms

A tax-deferred swap of one investment property for another, allowing you to postpone paying capital gains tax.

Property you own for investment or personal use that can generate a capital gain or loss when sold.

The profit from selling a capital asset for more than you paid for it.

The loss from selling a capital asset for less than your cost basis.

The original value of an asset for tax purposes, usually the purchase price plus certain adjustments.

A category that determines your tax bracket thresholds, standard deduction, and eligibility for certain credits.

How long you owned an asset before selling it, which determines whether gains are taxed at short-term or long-term rates.

Long-Term Capital Gains

Profits from selling assets held for more than one year, taxed at preferential federal rates of 0%, 15%, or 20%.

Marginal Tax Rate

The tax rate applied to your next dollar of income — the highest bracket you've reached.

Modified Adjusted Gross Income

Your adjusted gross income (AGI) with certain deductions added back, used to determine eligibility for tax benefits and surtaxes like the NIIT.

Net Investment Income Tax

A 3.8% federal surtax on investment income for individuals with MAGI above $200,000 (single) or $250,000 (married filing jointly).

Short-Term Capital Gains

Profits from selling assets held for one year or less, taxed as ordinary income at rates up to 37%.

Step-Up in Basis

When an inherited asset's cost basis is reset to its fair market value at the date of the owner's death, eliminating all unrealized capital gains.

Your gross income minus deductions — the amount used to determine which tax bracket you fall into.

An IRS rule that disallows a capital loss deduction if you buy a substantially identical security within 30 days before or after the sale.

Next review: 2027-01-15 • Applies to tax year: 2025