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Georgia Retirement Tax Friendliness

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Overview of Georgia Retirement Tax Friendliness

Georgia does not tax Social Security retirement benefits and provides a maximum deduction of $65,000 per person on all types of retirement income for anyone 65 or older. The state’s sales tax rates and property tax rates are both relatively moderate. Georgia has no inheritance or estate taxes.

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You will pay of Georgia state taxes on your pre-tax income of
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Quick Guide to Retirement Income Taxes
is toward retirees.
Social Security income is taxed.
Withdrawals from retirement accounts are taxed.
Wages are taxed at normal rates, and your marginal state tax rate is %.
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

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Georgia Retirement Taxes

Photo credit: ©iStock.com/omersukrugoksu

Are you planning for retirement with Georgia on your mind? We don’t blame you. The Peach State has a lot to offer.

Georgia has big, culturally rich cities like Atlanta. It has charming colonial towns like Savannah. It has pristine beaches on the Atlantic Coast. It is even home to one of the world’s most famous golf courses, in Augusta. Georgia is also one of the most retirement tax-friendly states in America.

A financial advisor in Georgia can help you plan for retirement and other financial goals. Financial advisors can also help with investing and financial plans, including taxes, homeownership, insurance and estate planning, to make sure you are preparing for the future.

Is Georgia tax-friendly for retirees?

Yes, as Georgia does not tax Social Security and provides a deduction of $65,000 per person on all types of retirement income for anyone age 65 and older. Meanwhile, the state’s sales tax rate and property tax rate are both relatively moderate, and there are no inheritance or estate taxes to worry about.

Is Social Security taxable in Georgia?

In short, no, Social Security is not taxed in Georgia. When filing income taxes here, you should subtract any Social Security that is included in the Adjusted Gross Income (AGI) on your federal tax return from your income on your Georgia tax return. That means none of your Social Security income will be subject to tax.

Are other forms of retirement income taxable in Georgia?

Yes, but there is a significant tax exclusion available to seniors on all retirement income. For anyone age 62 to 64, the exclusion is $35,000 per person. For age 65 or older, the exclusion is $65,000 per person. That applies to all income from retirement accounts and pensions.

If you have less than $65,000 in retirement income, you will not pay taxes. Up to $4,000 of that can be applied to earned income (from wages and salary). Retirement income above that ceiling will be combined with other sources of income and taxed at Georgia’s personal income tax rates, shown in the table below.

Income Tax Brackets

Single Filers
Georgia Taxable IncomeRate
$0 - $7501.00%
$750 - $2,2502.00%
$2,250 - $3,7503.00%
$3,750 - $5,2504.00%
$5,250 - $7,0005.00%
$7,000+5.75%
Married, Filing Jointly
Georgia Taxable IncomeRate
$0 - $1,0001.00%
$1,000 - $3,0002.00%
$3,000 - $5,0003.00%
$5,000 - $7,0004.00%
$7,000 - $10,0005.00%
$10,000+5.75%
Married, Filing Separately
Georgia Taxable IncomeRate
$0 - $5001.00%
$500 - $1,5002.00%
$1,500 - $2,5003.00%
$2,500 - $3,5004.00%
$3,500 - $5,0005.00%
$5,000+5.75%
Head of Household
Georgia Taxable IncomeRate
$0 - $1,0001.00%
$1,000 - $3,0002.00%
$3,000 - $5,0003.00%
$5,000 - $7,0004.00%
$7,000 - $10,0005.00%
$10,000+5.75%

How high are property taxes in Georgia?

Homeowners in Georgia pay about $870 annually in property taxes per $100,000 in home value, a below-average figure. Additionally, there are a number of exemptions that can help seniors in need of property tax relief.

What is the Georgia homestead exemption?

The Georgia homestead exemption is available to every homeowner who occupies his or her home as a primary, permanent residence. It exempts the first $2,000 in assessed value from property taxes. Seniors age 65 or older may be eligible for a double homestead exemption. To qualify, the applicant’s total household income, not including Social Security and pension income, cannot exceed $10,000 annually.

Other forms of property tax relief for retirees in Georgia include an exemption of all property value accumulated after the “base year” in which a senior age 62 or older applies.

So if your home is worth $80,000 when you apply and the value grows to $100,000 the next year, you will only pay property taxes on that first $80,000. If the property value grows to $150,000 over the course of the next seven years, you will still only pay taxes on the first $80,000. To qualify, household income must not exceed $30,000.

Photo credit: ©iStock.com/golfladi

How high are sales taxes in Georgia?

The Georgia statewide sales tax rate is 4%, which ranks in the bottom 20 of all U.S. states. Additionally, localities and counties in Georgia collect their own sales taxes, with rates up to 4.9%. Including both state and local rates, the average total sales tax rate in Georgia is 7.31%, slightly above the national average.

Unlike many other states, Georgia does allow for the taxation of groceries, but only the local rates apply. So, expect to pay sales taxes of up to 5% when shopping at the supermarket in Georgia.

What other Georgia taxes should I be concerned about?

Georgia eliminated its estate tax in 2014, so seniors don’t need to worry about that. The overall cost of living in Georgia tends to be slightly lower than the national average, so in general seniors can expect their everyday costs to be lower than those of the average American.