Does Georgia Tax Retirement Income? 2026 Rules & Exclusions

2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: far less than most guides say. Georgia’s 2026 income-tax rate is a flat 4.99% — HB 463 (signed May 11, 2026) cut it retroactively to January 1, 2026, so pages showing 5.19%, 5.39% or 5.75% are stale. More importantly for retirees, most never owe the full rate: Social Security is exempt outright, and Georgia’s retirement-income exclusion shelters up to $65,000 per person at 65+ ($35,000 at 62–64) across pensions, 401(k)/IRA withdrawals, interest, dividends, capital gains, rental income and up to $5,000 of earned income (O.C.G.A. §48-7-27(a)(5)).

How Georgia taxes retirement income in 2026 (statute-cited)

Income tax rate	Flat 4.99% (HB 463, retroactive to 1/1/2026; further 0.125%/yr trigger cuts scheduled toward 3.99%)
Social Security	Not taxed — excluded separately from (and on top of) the retirement exclusion
Retirement-income exclusion	$65,000/person at 65+; $35,000 at 62–64; covers pensions, 401(k)/IRA, interest, dividends, capital gains, rental, + up to $5,000 earned income (O.C.G.A. §48-7-27(a)(5)). Under 62 (non-military): no exclusion
Military retirement	Under 62: up to $17,500 (+$17,500 more with matching earned income). From TY2026 (HB 266): up to $65,000 excludable at any age
Estate / inheritance tax	None
Coming in 2027	HB 463 raises the retirement exclusion to $70,000 starting TY2027

Worked example: a 65+ couple drawing $50,000 each from 401(k)s plus Social Security owes Georgia $0 — each spouse’s $50,000 sits under the $65,000-per-person exclusion, and Social Security never enters the calculation. A common error in ranking content is treating the $65,000 as a household cap or as covering Social Security; it is per person, and Social Security is exempt separately.

What settling an estate costs in Georgia

No estate or inheritance tax. Personal-representative compensation defaults to a statutory commission absent a will provision: 2.5% of money received plus 2.5% of money paid out (O.C.G.A. §53-6-60); attorney fees are reasonable-basis. Georgia has no general small-estate affidavit — alternatives are the “no administration necessary” order for debt-free intestate estates with unanimous heirs (no dollar cap) and direct bank release of up to $15,000 to family (O.C.G.A. §7-1-239). Opening probate costs $175 base (O.C.G.A. §15-9-60), typically ~$205–$210 with county surcharges plus ~$65 publication. Context: probate cost by state · small-estate limits by state · will vs. trust calculator.

Is Georgia a good state to retire in for taxes?

For retirees 65 and older with income under roughly $65,000 per person plus Social Security: effectively a no-income-tax state, with no tax at death either — and the exclusion rises to $70,000 in 2027. The gap to Florida and Tennessee only matters for large withdrawals above the exclusion, taxed at 4.99% and falling. Ages 62–64 get half the shelter; under 62, Georgia taxes retirement-account income like ordinary income, so early retirees should time Roth conversions and large withdrawals accordingly.

Georgia vs. its neighbors

State	Social Security	Pension / 401(k) / IRA	Estate tax	Inheritance tax
Georgia	Not taxed	Excluded up to $65,000/person at 65+ ($35k at 62–64)	None	None
Florida	Not taxed	Not taxed (no income tax)	None	None
South Carolina	Not taxed	Deductions: $3k under 65; $10k + senior deduction at 65+	None	None
Tennessee	Not taxed	Not taxed (no income tax)	None	None
North Carolina	Not taxed	Taxed at flat 3.99% (2026)	None (repealed 2013)	None

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Georgia may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

Finding a financial advisor in Georgia

Per the SEC’s July 2026 Investment Adviser roster, Georgia has 326 SEC-registered advisory firms (#12 nationally) managing $1.50 trillion (#14 by AUM). Full breakdown: Georgia advisor statistics. A cross-state move is exactly when fee structures deserve a second look — see the fee-drag calculator.

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Thinking about moving?

Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Georgia:

Moving to Georgia? See retiring to Georgia.

Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.

What probate costs in Georgia

Georgia uses a hybrid standard — a statutory ceiling or floor with reasonableness applied inside it — so the fee has a bound but not a fixed number. Whether its small-estate route of $15,000 reaches real property is not clearly stated in the statute, so treat that as unresolved rather than permission. Full detail with the governing statute, the court filing fee and the threshold: Georgia probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Georgia Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/georgia-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Does Georgia Tax Retirement Income? The $65,000 Exclusion, 2026’s 4.99% Rate, and What Retirees Actually Owe