The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Georgia VS COUNTRY B Arizona

Side-by-side analysis of income tax, effective rates, and take-home pay for Georgia and Arizona in 2026.

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Arizona's flat 2.5% income tax rate — the lowest of any state that taxes income — gives it a decisive and growing advantage over Georgia's flat 4.99%. At $100,000 income, Arizona's state tax bill ($2,098) is $1,290/year lower than Georgia's ($3,388), and the gap widens to $11,250/year at $500,000 as the roughly 2.5-percentage-point difference compounds on larger incomes. Arizona also has the lower average effective property tax rate (~0.63% versus Georgia's ~0.87%), so it wins on nearly every metric: on combined income-plus-property tax at $100,000 income and a $400,000 home, Arizona comes out about $2,250/year cheaper overall. Neither state has local income tax anywhere, so city-level add-ons aren't a factor for either. Retirement income treatment is where the comparison gets more nuanced: Georgia exempts Social Security at any age and lets residents 65+ exclude up to $65,000 of retirement income ($130,000 for couples) from state tax, which can mean $0 state tax on a typical pension for an eligible retiree — potentially beating Arizona, which taxes pension and 401(k)/IRA withdrawals in full at its flat 2.5% rate regardless of age. For retirees under 65, or with retirement income above Georgia's exclusion threshold, Arizona's lower flat rate remains the better deal.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🍑
COUNTRY A
Georgia
TAX RATE
4.99%
Flat Tax (2026)
Flat 4.99% for 2026 under HB 463 (down from 5.49% in 2024); no local income tax anywhere
🌵
COUNTRY B
Arizona
TAX RATE
2.5%
Flat Tax
Flat 2.5% rate — the lowest state income tax rate of any state that taxes income; no local income tax anywhere
TYPICAL ANNUAL DIFFERENCE
Moving from Arizona → Georgia at $100,000
$1,290
That's $108/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🍑 GA TAX
🌵 AZ TAX
SAVINGS
10-YEAR
$50,000
$893
$848
$45
$450
$75,000
$2,141
$1,473
$668
$6,680
$100,000
$3,388
$2,098
$1,290
$12,900
$150,000
$5,883
$3,348
$2,535
$25,350
$250,000
$10,873
$5,848
$5,025
$50,250
$500,000
$23,348
$12,098
$11,250
$112,500
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

★ 4.8 verified reviews  ·  3,758 reviews

Moving between states means a complex multi-state tax return. Taxhub matches you with a real CPA via video call — average cost $325. Rated 4.8★ by 3,700+ clients.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched With a CPA →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🍑

Georgia Pros & Cons

+ PROS
  • No local income tax anywhere in Georgia — same simplicity advantage as Arizona
  • Generous retirement deduction: residents 65+ can exclude up to $65,000 of retirement income ($130,000 for couples), which can beat Arizona's flat 2.5% tax on the same income
  • No estate or inheritance tax on transfers to any heirs
  • Metro Atlanta offers a deep, diversified job market spanning logistics, film/TV production, fintech, and Fortune 500 headquarters
− CONS
  • Nearly double Arizona's flat income tax rate (4.99% vs 2.5%) — costs $45 to $11,250/year more at every income level tested
  • Higher average property tax (~0.87%) than Arizona (~0.63%) — an additional disadvantage on top of the income-tax gap
  • Under-65 retirees and residents with retirement income above the $65,000 exclusion pay the full 4.99% rate, unlike Arizona's flat 2.5% on the same income
  • Georgia's flat rate only reached 4.99% in 2026 under HB 463; Arizona has held its 2.5% rate since 2023
🌵

Arizona Pros & Cons

+ PROS
  • Flat 2.5% income tax rate — the lowest of any state that taxes income — beats Georgia at every income level, saving $45 to $11,250/year
  • Lower average property tax (~0.63%) than Georgia (~0.87%), adding to Arizona's overall tax advantage
  • No local income tax anywhere in the state, matching Georgia's simplicity
  • Wins the combined income-plus-property tax comparison by roughly $2,250/year at $100,000 income and a $400,000 home
− CONS
  • No blanket retirement-income exemption — pensions and 401(k)/IRA withdrawals are taxed at the full 2.5% rate regardless of age, unlike Georgia's $65,000 exclusion for residents 65+
  • For a retiree 65+ with retirement income at or below Georgia's exclusion threshold, Arizona's flat 2.5% tax can actually cost more than Georgia's $0 state tax bill on the same income
  • Rapid population growth in the Phoenix metro has pushed housing costs up sharply in recent years
  • Extreme summer heat and water-supply concerns are longer-term cost-of-living considerations not captured in the tax comparison
FAQ

Frequently Asked Questions

Is Georgia or Arizona cheaper for state income tax?

Arizona is cheaper at every income level. At $100,000, Arizona's flat 2.5% costs $2,098 versus Georgia's flat 4.99% at $3,388 — a $1,290/year difference. That gap grows to $11,250/year at $500,000, since Arizona's rate is exactly half of Georgia's.

Which state has lower property tax, Georgia or Arizona?

Arizona has the lower average effective property tax rate at roughly 0.63%, compared to Georgia's roughly 0.87%. On a $400,000 home, that's about $2,520/year in Arizona versus $3,480/year in Georgia — an additional $960/year savings for Arizona on top of its income-tax advantage.

So which state actually wins on combined income plus property tax?

Arizona wins clearly. At $100,000 income with a $400,000 home, Arizona's combined bill (about $4,618) is roughly $2,250/year lower than Georgia's (about $6,868). Arizona wins on both income tax and property tax, so there's no crossover point in this comparison.

Does either state tax retirement income like 401(k) and IRA withdrawals?

Both states exempt Social Security at any age, but they diverge sharply on other retirement income. Arizona taxes pensions and 401(k)/IRA withdrawals in full at its flat 2.5% rate, with no age-based break. Georgia lets residents 65+ exclude up to $65,000 of retirement income ($130,000 for couples) — meaning a retiree with, say, $50,000 in pension income could pay $0 in Georgia but roughly $1,250 in Arizona. Under 65, or above the exclusion amount, Arizona's lower flat rate wins instead.

How much would I save moving from Georgia to Arizona?

At $100,000 income, moving from Georgia to Arizona could save about $1,290/year in state income tax, plus roughly $960/year in lower property tax on a $400,000 home — a combined savings of about $2,250/year. At $250,000 income, the income-tax savings alone grow to about $5,025/year.

Why is Arizona's tax rate so much lower than Georgia's?

Arizona moved to a flat 2.5% rate in 2023 following a multi-year phase-down from its prior graduated brackets, making it the lowest state income tax rate among all states that levy one. Georgia's flat rate reached 4.99% in 2026 under HB 463, down from 5.49% in 2024, but it's still nearly double Arizona's rate.

Does either state have an estate or inheritance tax?

Neither state has an estate or inheritance tax. Both Georgia and Arizona repealed their estate taxes years ago, so neither is a consideration for residents of either state doing estate planning.

Is Atlanta or Phoenix better for job opportunities?

Atlanta has a larger concentration of Fortune 500 headquarters (Coca-Cola, Delta, Home Depot, UPS) and a deep film/TV production industry. Phoenix has a fast-growing technology and semiconductor manufacturing sector (including major chip-fabrication investment) alongside a large logistics and healthcare base. Both offer strong job growth; Arizona's lower overall tax burden gives it a modest take-home-pay edge at comparable salaries.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.