Updated October 4, 2026. Quick answer: Yes. Georgia’s return starts from federal adjusted gross income (the booklet says “Enter Federal adjusted gross income from Form 1040”), so a gain is taxed at the flat rate: “the income tax rate is 5.19%” for 2025, and 4.99% for 2026.
Selling your home? How the state taxes the profit, from its own tax documents: Does Georgia tax the profit from selling your home?.
The same question for dividends and interest: does Georgia tax dividends and interest.
How Georgia treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Taxed as ordinary income at the flat rate; no separate rate for gains is printed |
| 2025 rate | 5.19% |
| 2026 rate | 4.99% |
A $50,000 long-term gain
A $50,000 long-term gain adds $50,000 x 5.19% = $2,595 of Georgia tax for 2025, and $50,000 x 4.99% = $2,495 for 2026, before any other income or deduction.
What changes in 2026
The Department’s Important Tax Updates page says the Georgia income tax rate has been “reduced to a flat rate of 4.99%” for 2026.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Georgia taxes pensions, how Georgia taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- 2025 IT-511 Georgia Individual Income Tax Booklet: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
- Important Tax Updates (Georgia Department of Revenue): https://dor.georgia.gov/taxes/important-tax-updates
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.