Georgia retirement taxes at a glance (2026)
| State income tax | Flat 4.99%Georgia has a flat 4.99% income tax for 2026, down from 5.19%. |
|---|---|
| Social Security | Not taxedGeorgia does not tax Social Security benefits. |
| Pensions | Partly taxedPeople 62-64 (or totally disabled) can exclude up to $35,000 of retirement income; people 65+ can exclude up to $65,000 per person. Exclusion: up to $65,000 (age 62+). |
| 401(k) and IRA withdrawals | Partly taxedIRA and 401(k) withdrawals count toward the same $35,000 (62-64) or $65,000 (65+) exclusion, which also covers interest, dividends, capital gains and up to $5,000 of earned income. |
| Government pensions | Partly taxedGovernment pensions use the general retirement income exclusion. |
| Military retirement pay | Partly taxedUnder 62, retirees can exclude $17,500 of military retirement pay, plus another $17,500 if they have more than $17,500 of Georgia earned income. At 62+ the general retirement exclusion applies. |
| Estate tax | No |
| Inheritance tax | No |
| Property tax help for seniors | Homeowners 65+ with household income of $10,000 or less can get a $4,000 county property tax exemption, on top of the $2,000 standard homestead exemption. |
| Sales tax | State rate 4%; average combined rate about 7.49%. Groceries and prescriptions are exempt from the state sales tax. |
Recent changes and good to know
- HB 463 (signed 2026-05-11) cut the rate to 4.99% from 2026-01-01, with further annual cuts toward 3.99%, and raises the retirement exclusion to $70,000 starting in 2027.
- HB 266 (2025) reportedly allows up to $65,000 of military retirement pay to be excluded at any age; secondary sources say it takes effect for tax year 2027. Not confirmed on a state site.
How to lower your retirement taxes in Georgia
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Georgia too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Georgia tax retirement income?
Mostly no: Georgia exempts Social Security and lets people 62+ exclude $35,000-$65,000 each of retirement income, then taxes the rest at 4.99%.
Does Georgia tax Social Security?
Georgia does not tax Social Security benefits.
Does Georgia tax pensions?
People 62-64 (or totally disabled) can exclude up to $35,000 of retirement income; people 65+ can exclude up to $65,000 per person.
Does Georgia tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals count toward the same $35,000 (62-64) or $65,000 (65+) exclusion, which also covers interest, dividends, capital gains and up to $5,000 of earned income.
Does Georgia tax military retirement pay?
Under 62, retirees can exclude $17,500 of military retirement pay, plus another $17,500 if they have more than $17,500 of Georgia earned income. At 62+ the general retirement exclusion applies.
Sources (last verified 2026)
- Retirement Income Exclusion — Georgia Department of Revenue (2026-09-24)
- Gov. Kemp Signs Legislation Lowering Taxes and Supporting Economic Growth — Office of the Governor of Georgia (2026-05-11)
- Military Retirement Income Tax Exemption — Georgia Department of Veterans Service (2026-09-24)
- Georgia State Taxes for 2026 — AARP (2026)
- Georgia Military Tax 2026 — Honest MOS (2026)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.