Does a Tennessee Resident Pay Georgia Taxes?

If you live in Tennessee but earned money in Atlanta, you may be subject to Georgia income taxes.

If you live in Tennessee but earned money in Atlanta, you may be subject to Georgia income taxes.

If you are a Tennessee resident, you may owe Georgia income taxes if you lived part of the year in Georgia or if you earned income from a Georgia company. Of course, you also pay sales, excise and use taxes any time you are a visitor to Georgia and local property taxes if you have a second home or vacation property in the Peach State.

Residents and Nonresidents

If you are a resident of Georgia for part of the year and have to file a federal income tax return, then you must also file a Georgia tax return. If you live in Tennessee but work in Georgia, or earn money from a Georgia company, you also must file a Georgia return. The income may be wages, salary, rent or the earnings from a partnership or corporation established in Georgia. Georgia also taxes any lottery or gambling winnings you earned from a Georgia source.


If you are a resident of Tennessee and only earned money as an employee in Georgia, then you don't need to file a Georgia return if the money you earned in Georgia is not more than $5,000, or 5 percent of your total income, whichever is less. If your total wages for the year were $80,000, for example, and you earned less than $4,000 in Georgia, then you don't need to file a return. If your total wages were $100,000 or more, you are exempt if you made less than $5,000 in Georgia.

Schedule 3 and Tax Credits

To calculate the income subject to Georgia income tax, part-time residents and nonresidents complete Georgia's Schedule 3. To complete the form, you enter income earned from Georgia and non-Georgia sources, calculate and apply the ratio between the two numbers, subtract federal and state exemptions and arrive at Georgia taxable income. In addition, you may take a credit for taxes paid to another state to taxes owed to Georgia; the credit may not exceed your Georgia tax liability.

Tennessee Income Tax

Tennessee, in the meantime, requires you to file a tax return if you moved to or from the state and earned more than $1,250 while you lived in Tennessee. This applies to individuals; the earnings threshold is $2,500 for a couple filing a joint return. Income includes wages, interest, dividends and capital gains from mutual funds; Tennessee exempts interest on bank accounts, Tennessee municipal bonds and capital gains on stock transactions.


About the Author

Founder/president of the innovative reference publisher The Archive LLC, Tom Streissguth has been a self-employed business owner, independent bookseller and freelance author in the school/library market. Holding a bachelor's degree from Yale, Streissguth has published more than 100 works of history, biography, current affairs and geography for young readers.

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