State retirement tax · Georgia
Retirement tax rules for Georgia residents (2026 guide)
Georgia's rate fell to a flat 4.99% for 2026 (HB 463, retroactive to January 1), and its retirement-income exclusion is among the most generous anywhere: $65,000 per person from 65, $35,000 from 62, covering pensions, IRAs and even interest and dividends. Many retirees owe nothing.
By Mindaugas Laucius · Last reviewed October 21, 2026
Rate on retirement income
~0%*
Taxes Social Security?
No
Approx. tax on $90k retirement income
$0
Pension carve-outs
Yes
Quick figures: a single filer with $90,000 of income, $30,000 of it Social Security.
The retirement income exclusion
From 62 to 64 each taxpayer can exclude up to $35,000 of retirement income; from 65 it's $65,000. The exclusion covers pensions, annuities, IRA and 401(k) distributions, and unearned income such as interest, dividends, capital gains and rent — and only $5,000 of earned income per person. Social Security is exempt separately and doesn't use up the cap.
Military retirees
Under 62, up to $17,500 of military retirement pay is excluded, plus another $17,500 if you have more than $17,500 of Georgia earned income. From 62, military pay falls under the regular retirement exclusion.
Property and sales tax
HB 581 (2024) created a statewide floating homestead exemption that limits how fast a homestead's taxable value can rise to the inflation rate — but some cities, counties and school districts opted out for 2025, so check your local digest. Many counties add their own senior school-tax exemptions. The state sales tax is 4%, with local rates on top.
Worked examples
A single retiree at 67
- $55,000 of IRA withdrawals and pension income, under the $65,000 exclusion; $28,000 of Social Security exempt.
Georgia tax: $0.
A couple, both 66, with $160,000 of retirement income
- Exclusions: 2 × $65,000 = $130,000.
- $160,000 − $130,000 = $30,000.
- $30,000 × 4.99% = $1,497 before Georgia's standard deduction, which lowers it further.
At most about $1,500.
Retiring at 63
- $50,000 of IRA withdrawals − $35,000 exclusion = $15,000.
- $15,000 × 4.99% = $748.50 before deductions.
Under $750 — and the exclusion jumps to $65,000 at 65.
Recent and pending changes
- 2026: HB 463 cut the flat rate to 4.99% (from 5.19%), retroactive to January 1, 2026.
- 2025: HB 581's floating homestead exemption took effect where local governments didn't opt out.
Run your own numbers — pick Georgia in the calculator’s Taxes tab for a year-by-year estimate. Or compare all 50 states and DC.
Thinking about a move? The free state-to-state retirement tax comparison puts Georgia next to any other state on your own income.
Georgia questions
Does the Georgia exclusion cover Roth conversions?
Conversion income is retirement income for the exclusion, so it can be sheltered up to the per-person cap; amounts above the cap are taxed at 4.99%.
Can a married couple share one exclusion?
No — each spouse's exclusion applies to their own retirement income, so a spouse with little income can't hand the unused amount to the other.
Does Georgia tax Social Security?
No. Social Security is exempt and doesn't count against the $35,000/$65,000 cap.