Updated October 5, 2026. Quick answer: Yes. Georgia’s 2025 booklet prints that “the income tax rate is 5.19%”, and the Department of Revenue says the rate was “reduced to a flat rate of 4.99%” for 2026. Interest and dividends on U.S. obligations are subtracted.
How Georgia treats dividends and interest
| Item | What the documents say |
|---|---|
| Treatment | Taxed at the flat rate |
| 2025 rate | 5.19% |
| 2026 rate | 4.99% |
| U.S. obligations | Subtract “Interest and dividends on U.S. Government bonds and other U.S. obligations” |
| Other states’ municipal bonds | “Interest received from non-Georgia municipal” bonds is added back |
| Georgia municipal bonds | Subtract “interest issued on Georgia municipal bonds issued by the State of Georgia” |
| Standard deduction (2026) | $15,000 single, $30,000 joint |
A $20,000 example
Taxable dividends and interest of $20,000 add $20,000 x 5.19% = $1,038 for 2025, and $20,000 x 4.99% = $998 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. Qualified dividends and ordinary dividends are sorted out on the Form 1099-DIV, as the site explains in Box 1a and 1b: ordinary versus qualified dividends, and interest is reported as covered in 1099-INT Box 1. The IRS explains the federal side in Topic no. 403, Interest Received and Topic no. 404, Dividends.
Related: whether Georgia taxes capital gains, whether Georgia taxes pensions, how Georgia taxes retirement income, dividends and interest tax by state, and how tax-exempt interest is reported.
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Answer againSources
- 2025 Form IT-511 Individual Income Tax Booklet (Georgia Department of Revenue): 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 5, 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.