Composite Index
91.5
US average = 100.0
Georgia (GA) | Composite 91.5
Georgia Cost of Living 2026
Georgia sits at 91.5 on the 2026 C2ER cost of living index, about 8 percent below the US average. Housing is the standout: at 80.7 it is nearly 20 percent under the national figure, with Atlanta metro running near average and the rest of the state substantially cheaper. The 2024 transition to a flat 5.49 percent income tax simplified the picture and brought a modest cut for high earners.
Composite 91.5Flat 5.49% income taxHousing index 80.7
Median Home
$310,200
2BR rent $1,340/mo
Median Income
$65,030
Household, Census ACS
Category breakdown
All 6 categories vs national average
| Category | GA index | National avg | Difference |
|---|---|---|---|
| Housing | 80.7 | 100.0 | -19.3% |
| Groceries | 95.7 | 100.0 | -4.3% |
| Utilities | 96.2 | 100.0 | -3.8% |
| Transportation | 98.5 | 100.0 | -1.5% |
| Healthcare | 95.3 | 100.0 | -4.7% |
| Miscellaneous | 94.2 | 100.0 | -5.8% |
Sources: BEA Regional Price Parities, C2ER Cost of Living Index, Census ACS 5-year (median income, home value), Georgia Department of Revenue (income and sales tax), EIA (electricity rates), KFF (uninsured rate and Medicaid status), Zillow ZHVI.
Pros / offsets
What works in Georgia.
Housing 20 percent below national average. Housing sub-index 80.7. Median home statewide $310,200, well under the US median. Outside metro Atlanta, median home prices in many Georgia counties sit between $180,000 and $250,000. Even within metro Atlanta, the suburban housing market in counties like Henry, Paulding, and Coweta runs meaningfully under the national median.
Flat 5.49 percent income tax. Georgia simplified from graduated brackets to a flat 5.49 percent rate in 2024 (down from a top marginal of 5.75 percent), with scheduled reductions toward 4.99 percent over 2025-2029 contingent on revenue triggers. The Georgia Department of Revenue publishes the schedule each year.
Strong infrastructure for the price. Atlanta is the largest single airline hub in the world (Hartsfield-Jackson) and major air-cargo, road, and rail nexus for the Southeast. Broadband at 195 Mbps average per FCC National Broadband Map, with 84 percent of households at 100+ Mbps.
Low utility cost. Average residential electricity rate 13.25 cents per kWh per EIA, below the national average. Georgia Power and EMC cooperatives serve most of the state. Cooling load is significant in summer but mild winters keep heating costs low.
Cons / drivers
Where Georgia costs more.
Healthcare access is uneven. Uninsured rate 12.4 percent per KFF, higher than the US average. Georgia has not expanded Medicaid under the ACA, leaving a coverage gap for adults between Medicaid eligibility and ACA marketplace subsidies. Rural hospital closures have been a persistent issue; the state has lost more rural hospitals than most peers since 2010.
Atlanta traffic and transportation cost. Transportation sub-index 98.5, near average. MARTA covers a limited portion of metro Atlanta; most commuters drive. Atlanta-area commute times are among the longest in the Southeast. Fuel cost is moderate but vehicle miles per household are high.
Combined sales tax 7-8 percent. 4.0 percent state plus local can push combined rates to 7-8 percent in most counties. Groceries are exempt from the state portion but local jurisdictions can tax them. Atlanta city combined rate is roughly 8.9 percent.
Property tax above headline. Effective property tax rate 0.83 percent per the Tax Foundation, near the US average. On the $310,200 median home, the typical annual bill is about $2,600. The state offers a small homestead exemption; county-level exemptions vary widely.
Tax + benefit signals
Georgia tax and access overview
State income tax
1-5.49%
Graduated or flat
Property tax effective
0.83%
Of assessed value, annual
Sales tax (state)
4.00%
Local can add 1-4% more
Uninsured rate
12.4%
Medicaid: not expanded
Metro variation
State averages mask city variation.
Georgia state composite 91.5 averages substantial regional variation:
Atlanta MSA: Roughly 95-105 on the Regional Price Parity scale, near the national average. Median home in Atlanta MSA $400,000 per Zillow ZHVI. Inside-the-Perimeter neighborhoods (Buckhead, Midtown, Decatur, Inman Park) routinely exceed $700,000; outer-suburban counties (Henry, Paulding, Coweta, Forsyth) run $300,000-450,000.
Savannah: Roughly 90-95. Median home around $325,000. Historic-tourism economy, port logistics, and strong retiree migration. Charleston of Georgia, with Charleston-of-South-Carolina-style cost dynamics.
Augusta: Roughly 85-90. Median home around $235,000. Anchored by Fort Eisenhower (formerly Fort Gordon) Army Cyber Command and the Augusta National economy.
Columbus: Roughly 82-88. Median home around $200,000. Fort Moore (formerly Fort Benning) is the major employer. Among the cheapest mid-sized cities in the Southeast.
Macon: Roughly 82-88. Median home around $180,000. Central Georgia logistics and healthcare anchor the economy.
Athens: Roughly 90-95. University of Georgia drives demand; tight rental market during the school year. Median home around $325,000.
South Georgia (Valdosta, Albany, Tifton): Roughly 80-85. Median home $150,000-180,000. Agricultural economy with low wages but very low cost of living.
Frequently Asked
Georgia cost of living, answered
Why is Georgia housing so cheap?
A combination of generous available land, less restrictive land-use regulation than the Northeast or West Coast, fast permitting in many metro Atlanta counties, and an absence of geographic constraints (no ocean, no mountain wall) on growth. Median home statewide $310,200 sits roughly 20 percent below the US median, with much of the state under $250,000. Atlanta MSA is the only part of the state running close to national-average pricing.
What is the Georgia state income tax rate?
Flat 5.49 percent as of 2024 (down from a top marginal 5.75 percent), with scheduled reductions toward 4.99 percent over 2025-2029 contingent on state revenue triggers. The Georgia Department of Revenue publishes the rate annually. The flat structure simplified what had been a graduated bracket system. The standard deduction is now substantial enough that low-earning households often owe little to no state income tax.
Is Atlanta more expensive than the rest of Georgia?
Yes, meaningfully. Atlanta MSA Regional Price Parity runs roughly 100-105 vs the state composite 91.5. Median home Atlanta MSA $400,000 vs Macon $180,000, Augusta $235,000, Columbus $200,000. The Inside-the-Perimeter neighborhoods (Buckhead, Midtown, Decatur) carry premiums similar to mid-tier coastal cities, but Atlanta's exurbs remain affordable.
Why is the uninsured rate in Georgia so high?
12.4 percent uninsured per KFF, well above the US average. Georgia has not expanded Medicaid under the ACA, leaving a coverage gap for adults earning between Medicaid eligibility (very restrictive in non-expansion states) and ACA marketplace subsidies. The state also has the third-highest rate of rural hospital closures since 2010, which has affected access in much of South Georgia.
How does Georgia compare to North Carolina or Tennessee for cost of living?
Georgia (91.5) is broadly comparable to North Carolina (94.9) and Tennessee (89.7). Tennessee wins on income tax (zero) and Georgia wins on grocery cost; North Carolina sits in the middle. For someone considering all three, the deciding factors usually come down to specific metro (Atlanta vs Charlotte vs Nashville), proximity to family, and industry-specific job market depth.
Is Savannah a cheaper alternative to Charleston, SC?
Modestly. Savannah median home around $325,000 vs Charleston metro around $425,000. Both have historic-tourism economies, port logistics, and strong retiree appeal. Georgia state income tax (5.49 percent flat) is higher than South Carolina's top marginal of 6.2 percent in dollar terms for high earners, but Savannah housing makes up the difference for relocators. Both cities have similar climate, comparable healthcare networks, and similar grocery/utility costs.
What about retiring in Georgia?
Georgia is moderately retirement-friendly. The Retirement Income Exclusion lets taxpayers 62-plus exempt up to $35,000 of retirement income from state tax (raising to $65,000 at age 65). Social Security is fully exempt from state tax. Property tax is moderate at 0.83 percent effective. Healthcare access in some rural areas can be limited; metro Atlanta and the larger cities have strong provider networks. Retirees who want stronger tax treatment might look at Florida or Tennessee.
How does the Atlanta job market depth compare to other Southern metros?
Atlanta has the largest concentration of Fortune 500 headquarters in the South (Delta Air Lines, Coca-Cola, UPS, Home Depot, Southern Company, Norfolk Southern, NCR, Equifax, and others). The city is the dominant hub for the Southeast in banking (Truist, Synovus), film and TV production (Tyler Perry Studios, the Pinewood Atlanta Studios complex, and the Georgia Film Tax Credit incentive program), aviation (Hartsfield-Jackson is the busiest airport in the world by passenger count), and increasingly technology (a growing fintech and SaaS startup ecosystem). For a knowledge worker considering Southeast options, Atlanta typically offers the deepest job market across more industries than Charlotte, Nashville, or Tampa.
Are the Georgia coast and barrier islands very different cost-wise?
Yes. The Georgia coast (Savannah, Tybee Island, St Simons, Sea Island, Jekyll Island) carries a meaningful tourism-and-second-home premium. Median home in central Savannah runs around $325,000 but coastal Sea Island and Tybee can exceed $1 million for waterfront property. Brunswick (mainland coastal) is much cheaper at around $230,000 median home. The hurricane risk on the Georgia coast is real (Hurricane Matthew 2016, Hurricane Dorian 2019) but lower than the Florida or Gulf Coast exposure. Coastal home insurance premiums run noticeably above inland Georgia rates.