State retirement taxes · 2026
Does Georgia tax retirement income?
Short answer: Partly. Georgia does not tax Social Security benefits. Up to $65,000 per person of retirement income — pensions, IRAs, interest and more — is excluded at 65+ ($70,000 from 2027).
What’s taxed in Georgia
2026 rules.
- Social SecurityNot taxed
- Georgia does not tax Social Security benefits.
- PensionsPartly taxed
- Up to $65,000 per person of retirement income is excluded at 65+ ($35,000 at 62–64).
- IRA & 401(k) withdrawalsPartly taxed
- Taxable IRA and 401(k) withdrawals count toward the same $35,000 / $65,000 exclusion.
- Military retirement payPartly taxed
- 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. At 62+, it falls under the general $35,000 / $65,000 exclusion.
- Income tax rate4.99% flat
- A flat 4.99% for 2026, down from 5.19% in 2025.
Does Georgia tax Social Security?
Georgia does not tax Social Security benefits.
Taxable Social Security and Railroad Retirement benefits are exempt from Georgia income tax, with no age or income test.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Georgia?
Up to $65,000 per person of retirement income is excluded at 65+ ($35,000 at 62–64).
The retirement income exclusion covers pensions, annuities, interest, dividends, net rental income, capital gains, royalties and up to $5,000 of earned income. It is $35,000 per person at 62–64 (or if permanently disabled under 62) and $65,000 per person at 65 or older, with no income limit. Each spouse qualifies separately. The 65+ amount rises to $70,000 from 2027.
Public vs. private pensions: Public and private pensions share the same exclusion.
Are IRA and 401(k) withdrawals taxed in Georgia?
Taxable IRA and 401(k) withdrawals count toward the same $35,000 / $65,000 exclusion.
Taxable IRA distributions are part of the exclusion worksheet (Schedule 1). Anything above your exclusion is taxed at the flat rate.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Georgia?
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. At 62+, it falls under the general $35,000 / $65,000 exclusion.
What is Georgia’s income tax rate?
A flat 4.99%.
A flat 4.99% for 2026, down from 5.19% in 2025. Under HB 463 the rate is scheduled to drop 0.125 point a year from 2027 until it reaches 3.99%, but each step happens only if state revenue tests are met, so the 2027 rate (4.865% with no delay) is a projection.
Standard deduction and exemptions
2026 standard deduction: $15,000 single, head of household or married filing separately; $30,000 joint (up from $12,000 / $24,000). It is scheduled to rise $375 / $750 a year from 2027 to $18,000 / $36,000, subject to the same revenue tests. Dependent exemption: $5,000. There is no extra standard deduction for age.
What tax breaks do seniors get in Georgia?
The retirement income exclusion is the big one. Georgia has not adopted the federal $6,000 senior deduction — it says it has not adopted the One Big Beautiful Bill Act changes. A low-income credit also exists.
What changed for 2026?
HB 463 (signed May 11, 2026): a 4.99% rate for 2026 and trigger-based cuts toward 3.99%; a higher standard deduction and dependent exemption; the 65+ retirement exclusion rises to $70,000 from 2027; and new exclusions of up to $1,750 of overtime and $1,750 of cash tips for 2026–2028.
HB 463 (signed May 11, 2026) set the 2026 rate retroactive to January 1; exclusion rules come from the 2025 IT-511 booklet.
How Georgia compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- GeorgiaThis pageVery friendlySocial Security Not taxedTop rate: 4.99% flat
- AlabamaVery friendlySocial Security Not taxedTop rate: 5% top
- FloridaTax-free retirement incomeSocial Security Not taxedTop rate: None
- North CarolinaFriendlySocial Security Not taxedTop rate: 3.99% flat
- South CarolinaFriendlySocial Security Not taxedTop rate: 5.21% top
- TennesseeTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
Georgia retirement tax questions
Is Georgia tax-friendly for retirees?
We rate Georgia “Very friendly” for 2026. Georgia does not tax Social Security benefits. Up to $65,000 per person of retirement income — pensions, IRAs, interest and more — is excluded at 65+ ($70,000 from 2027). The top income tax rate is 4.99%.
Are required minimum distributions (RMDs) taxed in Georgia?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Georgia’s rules for those accounts. Taxable IRA and 401(k) withdrawals count toward the same $35,000 / $65,000 exclusion.
Is military retirement pay taxed in Georgia?
Partly. 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. At 62+, it falls under the general $35,000 / $65,000 exclusion.
Is Georgia’s retirement exclusion going up?
Yes. HB 463 raises the exclusion for people 65 and older from $65,000 to $70,000 per person starting with tax year 2027. The $35,000 exclusion for ages 62–64 is unchanged. There is no income limit, and each spouse qualifies separately.
Sources for Georgia
Primary sources only. We re-check them whenever an agency publishes new figures.
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