Pictured is the Georgia state Capitol. Staff file photo.VIDEO
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NO INCOME TAXNine states with no income tax:* Alaska* Florida* Nevada New Hampshire* South Dakota* Texas* Washington* Wyoming Tennessee* While they don’t tax wages, New Hampshire and Tennessee do tax individuals’ dividend and interest income.TAX SYSTEMS AT A GLANCETennessee:* Income tax: Hall income tax, a 6 percent tax on interest and dividends. Tennessee’s income tax collections per person were $27 in 2010 which ranked seventh lowest nationally.* Corporate tax: 6.5 percent flat corporate income tax. Tennessee’s corporate tax collections per person were $142 in 2010 which ranked 11th highest nationally.* Sales tax: 7 percent state sales tax. The average local sales tax rate is an additional 2.44 percent. Tennessee’s state and local governments collect $1,268 per person in general sales taxes and $368 per person in excise taxes, for a combined figure of $1,636, which ranks 10th highest nationally.* Property tax: Tennessee’s state and local governments collected approximately $795 per person in property taxes, which ranks 9th lowest nationally.Georgia:* Income tax: Georgia’s personal income tax system consists of six brackets and a top rate of 6 percent. Georgia’s income tax collections per person were $726 in 2010 which ranked 22nd lowest nationally.* Corporate tax: Georgia’s corporate income tax system consists of a flat rate of 6 percent. Georgia’s corporate tax collections per person were $71 in 2010 which ranked 16th lowest nationally.* Sales tax: Georgia levies a 4 percent general sales or use tax on consumers. The average local sales tax rate is an additional 2.99 percent. Georgia’s state and local governments collect $862 per person in general sales taxes and $274 per person in excise taxes, for a combined figure of $1,137, which ranks 11th lowest nationally.* Property tax: Georgia’s state and local governments collected approximately $1,096 per person in property taxes, which ranks 18th lowest nationally.Source: Tax Foundation, Washington, D.C.
A group of Republican lawmakers in Atlanta wants to do away with Georgia’s 6 percent income tax and replace it — mainly by increasing taxes on sales and services.
State Rep. Tom Kirby, R-Loganville, set the stage for what could be a sweeping change to Georgia’s tax system when he introduced the “Fair Taxation Act of 2014” on the final day of the legislative session.
“It’s a bill to eliminate income tax in the state of Georgia,” Kirby said. “I think we’ve got a good chance in 2014 to get this passed.”