Where to keep cash in Georgia

Why Treasuries win in Georgia

Savings accounts, CDs and most money funds pay interest that Georgia taxes at up to 5.19%. Treasury bills don’t. So a Treasury bill paying 4.50% keeps what a fully taxable account paying 4.90% would, for a top-bracket Georgia resident. Today the best 1-year CD we track pays 4.65% and the best savings account 3.55%.

Municipal money funds in Georgia

We don’t list a money fund that holds only Georgia municipal debt. A national municipal fund is free of federal tax but generally taxed by Georgia; for a top-bracket resident it needs at least 2.99% to beat a 1-year Treasury bill.

Georgia taxes on cash, in brief

• Top income tax rate: 5.19%, a flat rate on all income. Your own rate may be lower; change it above.
• Interest on U.S. Treasury bills, notes and bonds: exempt from state and local income tax, taxed federally.
• Savings accounts, CDs and prime or government money funds: taxed by Georgia, except the share of a fund’s income that comes from U.S. Treasuries.

Questions

Is Treasury bill interest taxed in Georgia?

No. Interest on U.S. Treasury bills, notes and bonds is exempt from state and local income tax under federal law, so Georgia doesn’t tax it. It is still subject to federal income tax. Interest from savings accounts and CDs is taxed by Georgia at up to 5.19%.

Where should I keep cash in Georgia?

At Georgia’s top rate and 37% federal, a 1-year Treasury bill keeps the most after tax today (4.50%). The answer depends on your brackets; the calculator on this page updates for yours.

What rate does a CD need to beat Treasury bills in Georgia?

At Georgia’s top rate and 37% federal, a CD or savings account needs at least 4.90% to keep as much as a 1-year Treasury bill paying 4.50%.

Rates: each provider’s own page and the U.S. Treasury, October 27, 2026. State rates: Tax Foundation, 2026 (top single-filer rate; local taxes not included). General information, not tax advice. Other states →