How tax-friendly is Atlanta?
The city of Atlanta is the capital of the US state of Georgia. Kiplinger, the American Publisher of Business Forecasts, has created a new ranking system dividing various states into five tax-related categories. These are very much tax-friendly; tax-friendly; mixed; not so much tax-friendly and least tax-friendly. The state of Georgia falls under the category of “mixed”. It has achieved this position due to its high sale taxes and moderate property taxes. International tax consultants in Toronto emphasizes various tax rules and tax-related statistical facts of Georgia and Atlanta.
Some effects of tax rates
According to Klinger, in Atlanta and in entire Georgia, many taxpayers pay taxes at a top marginal rate. Thus, if a married couple pay jointly, $10,000 of earning will be considered as a taxable income. Similarly, $7000 of earning will be considered as a taxable income for an individual filer.
Klinger also mentioned that in the financial year of 2019, the top tax rate of 6% has been dropped to 5.75% and it is expected to drop further up to 5.5% in the financial year of 2020. It will be possible, only if the lawmakers and the Governor of Georgia pass a joint resolution during the legislative session of 2020.
Current tax rates
Current tax rates are the reason for considering Atlanta and Georgia as “mixed tax-friendly” locations.
According to the tax foundation, in the bracket of sales tax, there is a 4% state levy. Residents can add up to 5% and the average combined rate never exceeds 7.33%. In Atlanta and other locations of Georgia, there is no tax on the sale of grocery foods.
While speaking about Income Tax, if a married couple files taxes jointly, 1% of tax will be levied on the first $1000 of net taxable income. If the couple files separately, the same rate of tax will be levied on the first $500 of net taxable income. This rate will be applied to the first $750 for the cases of individual filers.
Now for high-income groups, 6% of tax will be levied on more than $10,000 of taxable income, if a married couple files jointly. If the couple files separately, that same rate of tax will be levied on more than $5000 of each individual’s taxable income. For individual filers, the taxable income will be more than $7000. It has been found that for single filers and joint filers, the effective tax rates are 5.24% and 5.8%, respectively.
As a Property Tax, residents pay an average of $1.000 per $100,000 of assessed home value.
7% of tax is levied on vehicle registration and for an electric vehicle; you need to pay a$200 annual licensing fee.
At The Accounting & Tax, we offer International tax consultation service in Toronto. Thus, our experts can assist you in reaping all tax benefits, if you stay in Atlanta or in any other location of the US.
