Compare taxes and see how much you save moving from Texas to Georgia
Texas and Georgia are two of the fastest-growing states in the US, both attracting businesses and residents from high-tax states. The core tax difference: Texas has no state income tax; Georgia charges a flat 5.39% rate on all taxable income. Georgia switched from a progressive system to a flat rate in 2024 and has a legislated plan to reduce it to 4.99% by 2029, contingent on revenue triggers. At an $80,000 salary, the Texas income tax saving is approximately $4,300/year after Georgia's standard deduction. At $150,000, the saving is approximately $8,000/year. Texas funds its government through property taxes (average effective rate ~1.6%) and sales tax (6.25% state rate). Georgia's property taxes are significantly lower — average effective rate approximately 0.83% — which is a meaningful advantage for homeowners. On a $400,000 home, Georgia property tax runs about $3,320/year versus Texas's $6,400/year. The property tax gap reduces but doesn't eliminate the Texas income tax advantage for most earners. For business owners, Texas has no corporate income tax but imposes a margin tax (franchise tax) of 0.75% of gross revenue above $2.47M. Georgia imposes a 5.75% corporate income tax. Small business owners and freelancers often prefer Texas's structure for its simplicity. Both states have no estate or inheritance tax.
No State Income Tax
Zero state income tax; no personal income tax on wages, self-employment, or investment income
Flat Rate with Standard Deductions
5.39% flat rate (2024 onward); standard deduction $12,000 single / $24,000 married; plan to reduce rate to 4.99% by 2029
At $80,000 income:
Texas saves approximately $4,300/year vs Georgia at $80K income after Georgia's $12,000 standard deduction. Note: Georgia's property tax (~0.83%) is significantly lower than Texas's (~1.6%) — a $400K Georgia home costs ~$3,320/yr vs Texas $6,400/yr. Factor in property tax when comparing overall cost.
| Income | TX Tax | GA Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | ~$2,043 (after $12K deduction) | TX saves ~$2,043/yr | $20,430 |
| $80,000 | $0 | ~$3,659 (after $12K deduction) | TX saves ~$3,659/yr | $36,590 |
| $100,000 | $0 | ~$4,737 (after $12K deduction) | TX saves ~$4,737/yr | $47,370 |
| $150,000 | $0 | ~$7,433 (after $12K deduction) | TX saves ~$7,433/yr | $74,330 |
| $250,000 | $0 | ~$12,823 (after $12K deduction) | TX saves ~$12,823/yr | $128,230 |
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Moving from Texas to Georgia or vice versa involves part-year returns, residency changes, and optimising between income tax and property tax. A CPA can model your exact numbers. Taxhub matches you with a specialist. Virtual meetings, fixed pricing.
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Get Matched With a State Tax CPA →At high income levels, Texas is better on income tax — at $200,000, the Texas saving is approximately $10,200/year after Georgia's standard deduction. However, Texas property taxes are roughly double Georgia's, so the comparison depends heavily on your home value. If you own a $600,000 home, Texas costs approximately $9,600/year in property tax vs Georgia's $4,980/year — a $4,620/year Georgia advantage. At $200K income, the income tax saving ($10,200) still exceeds the property tax increase ($4,620), making Texas the better overall choice for high earners. At lower income and higher home values, Georgia can be competitive.
Georgia passed legislation to reduce its flat income tax rate over several years: 5.49% in 2023, 5.39% in 2024, with a path to 4.99% by 2029 subject to revenue triggers. The reduction plan requires the state to meet revenue targets. Even at 4.99%, Texas at 0% remains lower — but Georgia's combination of lower income tax rate and much lower property taxes makes the overall comparison more competitive for homeowners, particularly those with high-value properties.
Georgia's effective property tax rate averages approximately 0.83% — one of the lower rates in the Southeast. Texas averages approximately 1.6% — among the highest in the country. On a $300,000 home: Georgia property tax ≈ $2,490/year; Texas ≈ $4,800/year. On a $500,000 home: Georgia ≈ $4,150/year; Texas ≈ $8,000/year. For homeowners moving from a high-value Texas property to Georgia, the property tax saving is substantial and must be weighed against the income tax increase.
Texas has no corporate income tax but levies a franchise tax (margin tax) of 0.75% on gross revenues above $2.47 million. For businesses below this threshold — the majority of small businesses — Texas is effectively tax-free at the business level. Georgia levies a 5.75% corporate income tax. For pass-through entities (LLCs, S-Corps), income flows through to personal returns: Texas owners pay zero state income tax on this income; Georgia owners pay 5.39%. For most small business owners and freelancers, Texas is the better tax environment.
Texas cities attracting the most interstate migrants are Austin (tech), Dallas-Fort Worth (finance, tech, logistics), Houston (energy, medical), and San Antonio (military, healthcare). Georgia's primary destination is metro Atlanta (Buckhead, Alpharetta, Marietta) and its suburbs. Austin and Dallas offer no income tax but high property taxes and rising housing costs. Atlanta offers lower property taxes, strong job market, and 5.39% income tax — a meaningful middle ground for those not seeking full tax elimination but wanting lower overall costs than Northeast or West Coast markets.
Georgia exempts Social Security income from state income tax. Georgia also provides a retirement income exclusion: $35,000 per person (ages 62–64) or $65,000 per person (age 65+) on qualifying retirement income including pension income, IRA and 401(k) withdrawals, and investment income. For retirees, this exclusion substantially reduces or eliminates Georgia income tax — a couple over 65 can exclude $130,000 in retirement income. Texas, with no income tax at all, still wins in absolute terms, but Georgia is more competitive for retirees than the 5.39% headline rate suggests.