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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Georgia VS COUNTRY B Minnesota

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Georgia's flat 4.99% income tax gives it a clear and rapidly widening advantage over Minnesota's progressive 5.35-9.85% system, which has the 3rd-highest top rate in the nation behind only California and Hawaii. At $100,000 income, Georgia's state tax bill ($3,388) is $1,834/year lower than Minnesota's ($5,222), and the gap balloons to $6,471/year at $250,000 and $18,621/year at $500,000 as Minnesota's 7.85% and 9.85% brackets kick in on top of an already-higher base rate. Property tax adds a smaller but real edge for Georgia too: its average effective rate of roughly 0.79% is below Minnesota's roughly 1.00%. Estate planning is a sharp differentiator for high-net-worth families — Georgia has no estate tax at all, while Minnesota levies its own state estate tax on estates above a $3 million exemption (not indexed to inflation) at rates of 13-16%, with spousal portability only available for deaths after June 30, 2025. On retirement income, Georgia is considerably more generous for retirees 65+, who can exclude up to $65,000 of retirement income per person ($130,000 for couples) on top of a full Social Security exemption at any age, while Minnesota taxes pension and 401(k)/IRA income at its regular progressive rates and only partially exempts Social Security above certain income thresholds.
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
Minnesota
TAX RATE
5.35-9.85%
4-Bracket Progressive
Progressive 5.35-9.85% across 4 brackets — the 3rd-highest top rate in the nation after California and Hawaii
TYPICAL ANNUAL DIFFERENCE
Moving from Minnesota → Georgia at $100,000
$1,834
That's $153/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
❄️ MN TAX
SAVINGS
10-YEAR
$50,000
$893
$1,822
$929
$9,290
$75,000
$2,141
$3,522
$1,381
$13,810
$100,000
$3,388
$5,222
$1,834
$18,340
$150,000
$5,883
$8,879
$2,996
$29,960
$250,000
$10,873
$17,344
$6,471
$64,710
$500,000
$23,348
$41,969
$18,621
$186,210
💡

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🍑

Georgia Pros & Cons

+ PROS
  • Flat 4.99% income tax beats Minnesota's progressive 5.35-9.85% at every income level, saving $929 to $18,621/year
  • No state estate tax at all, versus Minnesota's own estate tax above a $3 million exemption (13-16% rates)
  • Generous retirement deduction: residents 65+ can exclude up to $65,000 of retirement income ($130,000 for couples), well beyond Minnesota's more limited breaks
  • Metro Atlanta offers a deep, diversified job market spanning logistics, film/TV production, fintech, and Fortune 500 headquarters
− CONS
  • Georgia's flat rate only reached 4.99% in 2026 under HB 463; Minnesota's bottom bracket (5.35%) is still higher than Georgia's flat rate at every income level
  • Under-65 retirees and residents with retirement income above the $65,000 exclusion pay the full 4.99% rate on that income
  • Slightly higher property tax variance by county (roughly 4x spread statewide) compared to Minnesota's more uniform rate structure
  • Smaller concentration of Fortune 500 headquarters in healthcare/med-tech than Minnesota's Target, UnitedHealth, and Medtronic cluster
❄️

Minnesota Pros & Cons

+ PROS
  • #1-ranked healthcare system and top-10 K-12 education nationally — high taxes fund some of the strongest public services in the country
  • Major Fortune 500 employer base (Target, Best Buy, 3M, UnitedHealth, Medtronic, General Mills) concentrated in the Twin Cities metro
  • TABOR-style budget stability isn't present, but Minnesota's tax revenue funds infrastructure and services that some residents view as worth the premium
  • Since 2025, surviving spouses can carry over a deceased spouse's unused $3 million estate tax exemption, improving portability for high-net-worth couples
− CONS
  • Progressive rates from 5.35% to 9.85% — the 3rd-highest top rate in the nation after California and Hawaii — cost $929 to $18,621/year more than Georgia at every income level tested
  • State estate tax applies above a $3 million exemption (not indexed to inflation) at rates of 13-16%, unlike Georgia's complete absence of an estate tax
  • No blanket retirement-income exemption — pensions and 401(k)/IRA withdrawals are taxed at Minnesota's full progressive rates, and Social Security is only partially exempt above certain income thresholds
  • Higher average property tax (~1.00%) than Georgia (~0.79%), adding to Minnesota's overall tax disadvantage
FAQ

Frequently Asked Questions

Is Georgia or Minnesota cheaper for state income tax?

Georgia is cheaper at every income level. At $100,000, Georgia's flat 4.99% costs $3,388 versus Minnesota's progressive 5.35-9.85% at $5,222 — a $1,834/year difference. That gap grows to $6,471/year at $250,000 and $18,621/year at $500,000, since Minnesota's top brackets (7.85% and 9.85%) apply to a growing share of income as earnings rise.

Which state has lower property tax, Georgia or Minnesota?

Georgia has the lower average effective property tax rate at roughly 0.79%, compared to Minnesota's roughly 1.00%. On a $400,000 home, that's about $3,160/year in Georgia versus $4,000/year in Minnesota — an additional $840/year savings for Georgia on top of its income-tax advantage.

Does either state have an estate tax?

Georgia has no state estate tax at all. Minnesota levies its own estate tax on estates above a $3 million exemption (not indexed to inflation) at rates of 13-16% — meaning a Minnesota estate can owe significant state tax even when no federal estate tax is due (the federal exemption is $15 million for 2026). Since deaths after June 30, 2025, Minnesota allows a surviving spouse to carry over a deceased spouse's unused exemption.

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

Georgia is significantly more retirement-friendly. Residents 65+ can exclude up to $65,000 of retirement income per person ($130,000 for couples), and Social Security is fully exempt at any age. Minnesota taxes pension and 401(k)/IRA withdrawals at its regular 5.35-9.85% rates with no blanket exemption, and only partially exempts Social Security for filers above certain income thresholds (roughly $105,380 AGI for married filers).

How much would I save moving from Minnesota to Georgia?

At $100,000 income, moving from Minnesota to Georgia would save about $1,834/year in state income tax, plus roughly $840/year in lower property tax on a $400,000 home — a combined savings of about $2,674/year. At $250,000 income, the income-tax savings alone grow to about $6,471/year.

Why is Minnesota's top tax rate so much higher than Georgia's?

Minnesota's 9.85% top rate is the 3rd-highest state income tax rate in the nation, behind only California (13.3%) and Hawaii (11%), reflecting the state's investment in public services like its #1-ranked healthcare system. Georgia moved to a flat 4.99% in 2026 under HB 463, prioritizing a simpler, lower-rate structure over Minnesota's more progressive, higher-revenue model.

Does either state charge a local income tax?

No. Neither Georgia nor Minnesota allows cities or counties to levy a general local income tax, so the state's rate structure is the whole income-tax picture for both.

Is Atlanta or the Twin Cities better for job opportunities?

Atlanta has a large concentration of Fortune 500 headquarters (Coca-Cola, Delta, Home Depot, UPS) plus a deep film/TV production industry. The Twin Cities host major healthcare and med-tech employers (UnitedHealth, Medtronic, 3M) alongside retail giants (Target, Best Buy). Both offer strong job markets; Georgia's much lower overall tax burden gives it a meaningful 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
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