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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Georgia VS COUNTRY B Indiana

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Comparing state rates alone, Indiana's flat 2.95% beats Georgia's flat 4.99% at every income level above $50,000 — at $100,000, Indiana's $2,475 state tax is $913/year lower than Georgia's $3,388, growing to $9,053/year at $500,000. Below $50,000 the two are close, with Georgia actually slightly cheaper at that income due to its $12,000 standard deduction plus $4,000 personal exemption. The critical caveat: unlike Georgia, which has zero local income tax anywhere in the state, every one of Indiana's 92 counties levies a mandatory income tax of 0.5% to 3.38% that all residents must pay — there is no Indiana county with a $0 rate. Using Indiana's own statewide average county rate (about 2.74%), the combined state-plus-county bill at $100,000 rises to roughly $4,774, which is actually higher than Georgia's $3,388. In other words, the state-only comparison favors Indiana, but the real-world combined comparison for most Indiana residents favors Georgia — the answer depends heavily on which Indiana county you'd live in. Property tax is close either way (Georgia ~0.87% vs Indiana ~0.84%). On retirement income, Georgia is far more generous: its $65,000 deduction for filers 65+ covers Social Security, pensions, and retirement-account withdrawals, while Indiana exempts Social Security but gives only a $4,000 deduction on other retirement income.
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
Flat 4.99% state rate for 2026 (phased down under HB 463); no local income tax anywhere in the state
🏎️
COUNTRY B
Indiana
TAX RATE
2.95%
Flat Tax + Mandatory County Tax
Flat 2.95% state rate — but every one of Indiana's 92 counties also levies a mandatory 0.5-3.38% county tax
TYPICAL ANNUAL DIFFERENCE
Moving from Indiana → Georgia at $100,000
$913
That's $76/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
🏎️ IN TAX
SAVINGS
10-YEAR
$50,000
$893
$1,000
-$107
-$1,070
$75,000
$2,141
$1,738
$403
$4,030
$100,000
$3,388
$2,475
$913
$9,130
$150,000
$5,883
$3,950
$1,933
$19,330
$250,000
$10,873
$6,900
$3,973
$39,730
$500,000
$23,328
$14,275
$9,053
$90,530
💡

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🍑

Georgia Pros & Cons

+ PROS
  • No local income tax anywhere in the state — unlike Indiana, where all 92 counties charge a mandatory county tax with no $0 option
  • Cheaper than Indiana once county tax is factored in for most Indiana residents, despite Indiana's lower headline state rate
  • $65,000 retirement-income deduction for filers 65+ covers Social Security, pensions, and 401(k)/IRA withdrawals — far more generous than Indiana's $4,000 deduction
  • Atlanta's tech, fintech, film/TV, and logistics job market is deeper and higher-paying than Indianapolis's manufacturing-centered economy
− CONS
  • The 4.99% flat state rate is higher than Indiana's 2.95% state-only rate — costing $403 to $9,053/year more at incomes above $50,000 if you compare state rates alone
  • Slightly higher average property tax (~0.87%) than Indiana (~0.84%), though the two are close
  • Only cheaper below $50,000 income; Indiana's state-only rate wins outright above that threshold if you live in a low-county-tax area
  • Hot, humid summers and worse traffic congestion (Atlanta ranks among the worst in the US) compared to Indianapolis
🏎️

Indiana Pros & Cons

+ PROS
  • Lower state-only tax rate than Georgia at every income level above $50,000 — saving $403 to $9,053/year on the state rate alone
  • Low-county-tax areas exist: LaGrange County (0.5%) keeps the combined state+county rate below Georgia's flat 4.99% even after adding local tax
  • Social Security is fully exempt from state tax, and Indiana has no estate or inheritance tax
  • Lower cost of living and lower average property tax (~0.84%) than Georgia (~0.87%), with strong pharmaceutical/manufacturing employers like Eli Lilly
− CONS
  • Every one of Indiana's 92 counties charges a mandatory county tax (0.5-3.38%) — there's no way to avoid it, unlike Georgia's zero local tax anywhere
  • Using Indiana's own statewide average county rate (~2.74%), the real combined state+county bill at $100,000 (~$4,774) is actually higher than Georgia's $3,388
  • Marion County (Indianapolis) residents pay the highest county rate (3.38%), pushing their combined total well above Georgia's flat rate
  • Only $4,000 retirement-income deduction for filers 65+ on non-Social-Security income, far less generous than Georgia's $65,000 deduction
FAQ

Frequently Asked Questions

Is Georgia or Indiana cheaper for state income tax?

It depends on whether you count Indiana's county tax. Comparing state rates only, Indiana's flat 2.95% beats Georgia's flat 4.99% at every income above $50,000 — saving $913/year at $100,000 and $9,053/year at $500,000. But every Indiana county also charges a mandatory 0.5-3.38% local tax that Georgia doesn't have at all. Using Indiana's own average county rate (~2.74%), the real combined bill at $100,000 (~$4,774) is actually higher than Georgia's $3,388.

Why does Indiana's mandatory county tax matter so much for this comparison?

Georgia has zero local income tax anywhere in the state — what you see is what you pay. Indiana is different: all 92 counties levy their own income tax (0.5% in LaGrange County up to 3.38% in Marion County/Indianapolis), and every resident pays it based on where they live on December 31. There's no Indiana county with a $0 rate, so the 'headline' 2.95% state-only figure understates what most Indiana residents actually pay.

Which Indiana counties would still beat Georgia even with county tax added?

Low-county-tax areas like LaGrange County (0.5%) keep the combined state+county rate at about 3.45% — still below Georgia's flat 4.99%. But higher-county-tax areas like Marion County/Indianapolis (3.38%) push the combined rate to about 6.33%, well above Georgia's 4.99%. Whether Indiana or Georgia wins for you depends heavily on which specific Indiana county you'd be comparing against.

Which state has lower property tax, Georgia or Indiana?

They're close: Indiana's average effective property tax rate (~0.84%) is slightly lower than Georgia's (~0.87%). On a $350,000 home, that's about $2,940/year in Indiana versus $3,045/year in Georgia — a modest $105/year difference that doesn't meaningfully change the overall comparison.

Does either state tax retirement income like Social Security or 401(k) withdrawals?

Both states fully exempt Social Security. Georgia is significantly more generous beyond that: its $65,000 deduction for filers 65+ covers pensions, 401(k), and IRA withdrawals as well, so many retirees with typical retirement income pay $0 Georgia state tax. Indiana gives only a $4,000 deduction on non-Social-Security retirement income for filers 65+, with the remainder taxed at the state rate plus county tax.

How much would I save moving from Georgia to Indiana?

It depends on which Indiana county. If you compare state rates only, moving from Georgia to Indiana at $100,000 income would save about $913/year. But if you'd be living in a higher-county-tax area like Marion County (Indianapolis, 3.38%), the county tax alone would add roughly $2,836/year, likely erasing the savings and costing you more overall than staying in Georgia.

Why does Georgia have no income tax below $50,000 but Indiana costs more there?

Georgia's $12,000 standard deduction plus $4,000 personal exemption shelter a larger share of lower incomes from tax, so at $50,000 Georgia's state tax ($893) is actually slightly below Indiana's state-only figure ($1,000). Above roughly $50,000-$75,000, Georgia's flat 4.99% rate overtakes Indiana's lower 2.95% rate, and Indiana's state-only advantage grows from there — before any county tax is added.

Is Atlanta or Indianapolis a better place to work despite the tax differences?

Atlanta has a considerably larger and higher-paying job market, with strength in technology, fintech, film/TV production, and logistics anchored by Hartsfield-Jackson Airport. Indianapolis is smaller but has a strong manufacturing and pharmaceutical base (Eli Lilly). For many high earners, Atlanta's salary premium can outweigh Georgia's higher flat tax rate compared to Indiana.
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