Residency rules, sticky taxes, and first-year steps (2026)
2026.1 Edition · Revised 2026-07-25 · DomusDay Research
The move changes the rate; the record decides whether it sticks. Alabama keeps taxing until domicile actually changes, with no fixed day threshold to hide behind. Below: what follows leavers, and the Georgia steps that build the record.
HB 463 lowered the flat individual income tax rate from 5.19% to 4.99% effective January 1, 2026 — crossing below 5% three years ahead of the original phase-down schedule that began at 5.39% in 2024.
Source ↗New residents title and register vehicles within 30 days of the move and pay Title Ad Valorem Tax at 3% of each vehicle's fair market value — the standard rate is 7.0%. A Georgia driver's license or ID comes first; the County Tag Office handles the rest.
Source ↗Georgia's resident definition counts 183 days or part-days, in the aggregate, of the 365 days preceding income tax day — no abode requirement, part-days count, and the window spans two calendar years, unlike a calendar-year test.
Source ↗Georgia is the easy half. Alabama decides whether the move counts, and it decides on evidence — the two tests below stay live until the record closes them out.
The full rules, the audit program, and every source: the complete Leaving Alabama guide →
Top-bracket rates differ by 0.01%: Alabama at 5%, Georgia at 4.99% — an illustration at the top marginal rate, not an effective-rate calculation.
The first weeks in Georgia matter more than they look: each step below produces a dated document, and dated documents are what answer a Alabama examiner years later. Do them early and the record starts on your side of the timeline.
DDS requires application for a Georgia driver's license within 30 days of becoming a Georgia resident; every Customer Service Center transfers an out-of-state license.
Source ↗Vehicles are registered with the state within 30 days of the move, at the County Tag Office, with a valid Georgia driver's license or ID in hand first. New residents pay Title Ad Valorem Tax at 3% of fair market value at first Georgia titling — the standard TAVT rate is 7.0%.
Source ↗Georgia voter registration is open to legal residents of the state and county, online with a DDS license or ID or by mailed application — a dated record tying residence to a Georgia county.
Source ↗A homestead exemption application is filed with the county tax commissioner or board of tax assessors — accepted any time of year, but filed by April 1 to take effect for the current tax year. The exemption requires occupancy as the primary residence treated as the legal residence for all purposes, making the grant a dated domicile marker.
Source ↗Registration requires proof of Georgia auto liability insurance, and continuous coverage is required while a registration is active. Minimum limits: $25,000 bodily injury per person, $50,000 per incident, and $25,000 property damage per incident.
Source ↗Georgia medical, dental, and professional relationships generate dated, located records on the arrival side of the facts-and-circumstances picture.
Participation in Georgia congregations, clubs, and civic organizations is conduct matching the avowed intention of remaining that O.C.G.A. §19-2-1 pairs with the physical move.
Source ↗Georgia's retirement income exclusion reaches $65,000 per taxpayer at age 65 and older ($35,000 at 62–64), covering pensions, annuities, interest, dividends, rental income, capital gains, royalties, and up to $5,000 of earned income — claimed on the Georgia return, per spouse when each qualifies.
Source ↗Part-year residents required to file federally file Georgia Form 500 for the arrival year and complete Schedule 3 to determine Georgia taxable income from the residency start date.
Source ↗The statutory test dates the arrival too: 183 days or part-days in Georgia over the 365 days preceding income tax day establish residency without any abode element, so arrival-year day records fix when Georgia residency began.
Source ↗Everything Georgia asks of a new resident, on its own plate: the Moving to Georgia guide →
Every rule on this page traces to a statute, regulation, or agency publication, listed in full on each state's own plate.
Two of them. Form 40 covers the period of Alabama residence with income from all sources, and Form 40NR covers Alabama-source income for the nonresident portion of the year. The full standard deduction and exemptions are claimed on the part-year return, and none on the nonresident return.
Wages for personal services performed in Alabama stay Alabama-source for a nonresident. Act 2025-334 excludes an employee who works 30 or fewer days in the state during the calendar year, performs duties in more than one state, and lives in a state with a similar exclusion or no income tax; past 30 days, all Alabama-earned income for the year is taxable.
2026.1 Edition · Revised 2026-07-25 · DomusDay Research