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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Pennsylvania VS COUNTRY B Georgia

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Pennsylvania's flat 3.07% income tax rate is one of the lowest in the country, while Georgia's flat rate reached its legislated floor of 4.99% in 2026 under HB 463. At $100,000 income, Pennsylvania's state tax bill ($2,576) is $812/year lower than Georgia's ($3,388), and the gap widens to nearly $8,500/year at $500,000 income. However, the full picture is more nuanced: Georgia's average effective property tax rate (~0.87%) is meaningfully lower than Pennsylvania's (~1.49%), so on a $400,000 home Georgia can actually come out ahead on combined income-plus-property tax for many households. There's also a real crossover at low income — Georgia's larger combined deductions make it slightly cheaper than Pennsylvania at $50,000 income. Georgia offers no local income tax anywhere in the state and a generous $65,000 retirement-income exclusion for residents 65+, while Pennsylvania fully exempts Social Security, pensions, and 401(k)/IRA withdrawals at any age but adds a 3.79% wage tax for Philadelphia residents specifically.
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
Pennsylvania
TAX RATE
3.07%
Flat Tax
Flat 3.07% state rate on all income; Philadelphia residents add 3.79% city wage tax
🍑
COUNTRY B
Georgia
TAX RATE
4.99%
Flat Tax (2026)
Flat 4.99% for 2026, reached under HB 463 (down from 5.49% in 2024); no local income tax anywhere
TYPICAL ANNUAL DIFFERENCE
Moving from Georgia → Pennsylvania at $100,000
$812
That's $68/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
🔔 PA TAX
🍑 GA TAX
SAVINGS
10-YEAR
$50,000
$1,041
$893
-$148
-$1,480
$75,000
$1,808
$2,141
$333
$3,330
$100,000
$2,576
$3,388
$812
$8,120
$150,000
$4,111
$5,883
$1,772
$17,720
$250,000
$7,181
$10,873
$3,692
$36,920
$500,000
$14,856
$23,348
$8,492
$84,920
💡

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🔔

Pennsylvania Pros & Cons

+ PROS
  • Flat 3.07% state income tax — one of the lowest and simplest rates in the country, with no brackets to manage
  • Full retirement-income exemption: Social Security, pensions, and 401(k)/IRA withdrawals are all tax-free at the state level, at any age
  • Two lower-cost major metros — Philadelphia and Pittsburgh — with strong healthcare, higher-education, and robotics/tech employers
  • Beats Georgia's income tax bill by $333–$8,492/year at every income level from $75,000 up
  • No franchise-style business surtax layered onto the flat personal rate
− CONS
  • Higher average property tax (~1.49% effective rate) than Georgia (~0.87%) — often erases some or all of PA's income-tax advantage on a $400,000+ home
  • Philadelphia residents pay an additional 3.79% city wage tax, pushing their combined rate to 6.86% — well above Georgia's flat 4.99% with zero local add-on
  • Pennsylvania levies an inheritance tax on transfers to non-spouse heirs (4.5% for children, up to 15% for unrelated heirs) — Georgia has none
  • At $50,000 income, Georgia's larger combined deductions actually make it slightly cheaper than Pennsylvania
🍑

Georgia Pros & Cons

+ PROS
  • No local income tax anywhere in Georgia — a real advantage over Pennsylvania, where Philadelphia adds 3.79% on top of the state rate
  • Low average property tax (~0.87%), well below Pennsylvania's ~1.49% — can make Georgia cheaper overall on a typical $300K–$400K home
  • Generous retirement deduction: residents 65+ can exclude up to $65,000 of retirement income ($130,000 for couples)
  • Metro Atlanta offers a deep, diversified job market spanning logistics, film/TV production, fintech, and Fortune 500 headquarters
  • No estate or inheritance tax on transfers to any heirs
− CONS
  • Higher state income tax rate (4.99% flat) than Pennsylvania (3.07%) — costs $333 to $8,492/year more at incomes from $75,000 to $500,000
  • Unlike Pennsylvania, Georgia fully taxes private pensions, 401(k), and IRA withdrawals for residents under 65 — only the 65+ exclusion provides relief
  • Atlanta's highway congestion (I-285, I-85, I-75) routinely ranks among the worst in the Southeast
  • Georgia's flat rate only reached its 4.99% target in 2026 (HB 463); Pennsylvania has been at 3.07% for years
FAQ

Frequently Asked Questions

Is Pennsylvania or Georgia cheaper for state income tax?

Pennsylvania is cheaper at every income level above $50,000. At $100,000, Pennsylvania's flat 3.07% costs $2,576 versus Georgia's flat 4.99% at $3,388 — a $812/year difference. At $500,000, the gap grows to $8,492/year. The one exception is at exactly $50,000, where Georgia's larger combined deductions make it about $148 cheaper than Pennsylvania that year.

Which state has lower property tax, Pennsylvania or Georgia?

Georgia has the lower average effective property tax rate at roughly 0.87%, compared to Pennsylvania's roughly 1.49%. On a $400,000 home, that's about $3,480/year in Georgia versus $5,960/year in Pennsylvania — a savings of about $2,480/year that can outweigh Pennsylvania's income-tax advantage for homeowners.

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

It depends on home value and income. At $100,000 income with a $400,000 home, Georgia's combined bill (about $6,868) is actually lower than Pennsylvania's (about $8,536), because Georgia's property tax savings outweigh Pennsylvania's income-tax advantage. Renters or owners of lower-value homes will generally see Pennsylvania come out ahead instead.

Does Pennsylvania or Georgia tax Social Security and retirement income?

Pennsylvania exempts Social Security, pensions, and 401(k)/IRA withdrawals from state tax at any age. Georgia doesn't tax Social Security at any age either, but private pensions, 401(k), and IRA withdrawals are fully taxable at 4.99% until age 65, when residents can exclude up to $65,000 of retirement income. For retirees under 65 with substantial 401(k)/IRA income, Pennsylvania is more favorable.

Does Philadelphia's city wage tax change the comparison?

Yes, significantly. Philadelphia residents pay a 3.79% city wage tax on top of the 3.07% state rate — a combined 6.86%. At $100,000 income, that's roughly $6,366 total, well above Georgia's flat $3,388 with no city tax anywhere in the state. Pennsylvania's income-tax advantage largely applies to non-Philadelphia residents.

How much would I save moving from Georgia to Pennsylvania?

At $100,000 income, moving from Georgia to Pennsylvania (outside Philadelphia) could save about $812/year in state income tax alone — but higher Pennsylvania property tax may offset part or all of that, depending on your home value. At $250,000 income, the income-tax savings grow to about $3,692/year, large enough to outweigh most property-tax differences.

Does either state have an estate or inheritance tax?

Pennsylvania has an inheritance tax (not an estate tax) that applies to property passed to heirs: 4.5% for children and grandchildren, 12% for siblings, and 15% for other beneficiaries, with exemptions for spouses and charities. Georgia has no estate or inheritance tax at all. This is a real consideration for estate planning, particularly for residents leaving assets to non-spouse relatives.

Which state is better for retirees on a fixed income?

Pennsylvania is generally better for retirees relying heavily on 401(k)/IRA withdrawals, since those are fully exempt regardless of age. Georgia is competitive for retirees 65+ with retirement income under $65,000, since that amount is fully excluded. Both states fully exempt Social Security. Georgia's lower property tax is an added plus for retired homeowners in either state.

How do Pittsburgh and Atlanta compare for job opportunities?

Atlanta has a much larger concentration of Fortune 500 headquarters (Coca-Cola, Delta, Home Depot, UPS) and a broader corporate job market. Pittsburgh has become a smaller but growing hub for robotics, autonomous vehicles, and healthcare research, anchored by Carnegie Mellon and UPMC. Atlanta offers more breadth; Pittsburgh offers lower cost of living relative to job quality.
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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