Retiring in Georgia: how your income is taxed
Georgia is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in Georgia
- Social Security: Social Security benefits are fully exempt from Georgia income tax.
- Pensions: The retirement income exclusion is up to $35,000 per person at 62 to 64 (or if totally disabled) and up to $65,000 per person at 65 and older. It covers pensions, annuities, 401(k) and IRA withdrawals, interest, dividends, capital gains, rent, royalties and up to $5,000 of earned income. Government pensions get the same treatment. Military retirement for 2026: under 62, $17,500, plus another $17,500 if Georgia earned income exceeds $17,500; at 62 and older, the general $35,000 or $65,000 exclusion applies. A 2025 law (HB 266) raises the military exclusion to $65,000 at any age starting with tax year 2027.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals fall under the same retirement income exclusion as pensions: up to $35,000 per person at 62 to 64 and $65,000 at 65 and older.
- At 65 and older: Georgia has no extra standard deduction or exemption at 65; its break for older residents is the retirement income exclusion.
Calculate your Georgia retirement taxes
State income tax in Georgia: $0 a year
In Georgia, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Georgia you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Georgia ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Georgia
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $998 | $0 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Georgia's main exclusions and may differ for income-tested credits.
Moving to Georgia in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Georgia come from (IRS migration data, 2022–2023).
- Florida to Georgia
- New York to Georgia
- Texas to Georgia
- California to Georgia
- Alabama to Georgia
- North Carolina to Georgia
Frequently asked questions
Does Georgia tax Social Security?
Not taxed. Social Security benefits are fully exempt from Georgia income tax.
Does Georgia tax pensions?
Partly taxed. The retirement income exclusion is up to $35,000 per person at 62 to 64 (or if totally disabled) and up to $65,000 per person at 65 and older. It covers pensions, annuities, 401(k) and IRA withdrawals, interest, dividends, capital gains, rent, royalties and up to $5,000 of earned income. Government pensions get the same treatment. Military retirement for 2026: under 62, $17,500, plus another $17,500 if Georgia earned income exceeds $17,500; at 62 and older, the general $35,000 or $65,000 exclusion applies. A 2025 law (HB 266) raises the military exclusion to $65,000 at any age starting with tax year 2027.
Does Georgia tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals fall under the same retirement income exclusion as pensions: up to $35,000 per person at 62 to 64 and $65,000 at 65 and older.
Is Georgia a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Georgia charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: dor.georgia.gov, dor.georgia.gov (2), gov.georgia.gov, veterans.georgia.gov. Rules reviewed .