Georgia Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

Remote Workers and Multi-State Taxation

Living in Georgia, Working for Out-of-State Employer

As a Georgia resident, you owe Georgia income tax on ALL income, regardless of where your employer is located.

What this means:

• Employer location does NOT determine tax obligation
• Income from employers in other states is fully taxable to Georgia
• Georgia law requires reporting all income on your Georgia return

Example: A Georgia resident working remotely for a New York company owes Georgia income tax on that income.

Credit for taxes paid to other states: If you physically worked in another state and that state taxed your income, you may claim a credit on your Georgia return for taxes paid to the other state.

Source: https://dor.georgia.gov/residency-filing-requirements

Working in Georgia, Living in Another State

Non-residents who perform work IN Georgia owe Georgia income tax on income earned from Georgia sources.

Physical Presence Rule: Income is sourced to Georgia based on where work is physically performed, not where the employer is located.

Allocation for multi-state workers: If you work partially in Georgia and partially in another state, you must allocate your income based on days worked in each location.

Allocation formula: (Days worked in Georgia / Total days worked) × Total compensation = Georgia-source income

Source: https://dor.georgia.gov/filing-residents-nonresidents-and-part-year-residents-faq

⚠️ Interstate Tax Risk Indicator

Remote workers involving Georgia commonly encounter dual taxation complications with specific states:

Working with these states requires careful planning:

• New York – Applies convenience of employer rule; may tax income even if working remotely from Georgia
• California – Aggressive residency audits for extended work periods; claims tax on all income if deemed resident
• Pennsylvania – No reciprocity; multi-state filing required
• Connecticut – Complex credit system for taxes paid to other states
• Massachusetts – No reciprocity with Georgia; double taxation possible without credit

Georgia’s approach: Georgia does NOT apply a “convenience of the employer” rule. Non-residents are taxed only on income from work physically performed in Georgia.

Source: https://dor.georgia.gov/filing-residents-nonresidents-and-part-year-residents-faq

“Convenience of the Employer” Rule

Georgia does NOT apply a “convenience of the employer” rule.

Non-residents working remotely for Georgia employers are taxed only on income from work physically performed in Georgia.

What this means:

• If you live in another state and work remotely for a Georgia employer, Georgia taxes only the income from days you physically worked in Georgia
• Georgia does not tax income for days worked from your home state
• This differs from states like New York that tax all income of remote workers for in-state employers

Source: https://dor.georgia.gov/filing-residents-nonresidents-and-part-year-residents-faq

Reciprocal Agreements

Georgia does NOT have reciprocal agreements with other states.

Residents of other states who work in Georgia must file Georgia non-resident returns and pay Georgia income tax on Georgia-source income.

Multi-State Tax Filing:

When earning income in multiple states:

1. File a resident return in your home state reporting all income
2. File non-resident returns in other states where income was earned (including Georgia if applicable)
3. Claim a credit on your resident state return for taxes paid to other states

Forms required for Georgia residents with multi-state income:

• Georgia Form 500 – reporting all income
• Schedule showing credit for taxes paid to other states
• Copy of other state’s tax return

Source: https://dor.georgia.gov/filing-residents-nonresidents-and-part-year-residents-faq