- New for the 2025 tax return, the federal return allows taxpayers to exclude up to $40,000 ($20,000 for Married Filing Separately) of state and local taxes. Georgia still limits these taxes to the previous limitation of $10,000 ($5,000 for Married Filing Separately), so any excess taxes will deducted.
- Any state and local income taxes paid to a state other than Georgia will be deducted. Georgia only allows you to deduct state and local income taxes paid to Georgia.
- Investment interest expense that was for the production of income exempt from Georgia tax will be deducted.
Why are my Georgia itemized deductions smaller than my federal itemized deductions?
Georgia requires the following adjustments to your federal itemized deductions:
