Updated October 7, 2026. Quick answer: Only if you live there. Georgia’s own instructions say that “Federal law prohibits state taxation of some types of retirement income” and Georgia residents report their federal adjusted gross income, which includes a pension earned in another state, then claim the retirement income exclusion if they qualify.
How Georgia treats a pension earned elsewhere
| Item | What the state documents say |
|---|---|
| Nonresidents | The part-year and nonresident instructions say a nonresident who receives deferred compensation earned in Georgia in a prior year owes Georgia tax on it, but the income is not taxed where federal law bars the state from taxing it, and the booklet names pensions among the protected retirement income. The nonresident rule rests on the nonresident section of the 2025 IT-511 booklet. |
| Residents with a pension earned elsewhere | A resident starts from federal adjusted gross income, so a pension earned in another state is part of the starting figure. The resident Schedule 1 subtractions then allow a retirement income exclusion of up to $35,000 for ages 62 to 64 and up to $65,000 at age 65 or older, for each qualifying spouse, with up to $5,000 of it allowed against earned income. The source says: “The maximum retirement income exclusion is $65,000”. This rests on the resident line instructions and the Schedule 1 subtraction rules in the 2025 IT-511 booklet. |
| Part-year residents (year of a move) | A part-year resident files Form 500 with Schedule 3, listing income as if a resident in Column A, income not taxable to Georgia in Column B, and Georgia taxable income in Column C. The retirement income exclusion is prorated for part-year filers. The source says: “prorate the amount of retirement exclusion”. This rests on the part-year and Schedule 3 instructions in the 2025 IT-511 booklet. |
| Rate | Georgia prints a flat income tax rate of 5.19% for 2025, applied to Georgia taxable income on Form 500 Line 16. The source says: “the income tax rate is 5.19%”. Georgia’s own site states a lower rate for 2026. |
| Return to file | Residents file Georgia Form 500. Part-year residents and nonresidents also file Form 500 and complete Form 500 Schedule 3 to calculate Georgia taxable income. The source says: “Georgia Form 500 and complete Form 500 Schedule 3”. |
A $40,000 move-year example
A retiree receives $40,000 of pension in the year of a move: $20,000 before the move date, as a Georgia resident, and $20,000 after leaving.
The first $20,000 can be taxed by Georgia; the rest is outside its reach under the federal rule below. At the 5.19% rate printed for 2025, the tax on it is computed as $20,000 x 0.0519 = $1,038, before any exclusion or credit. Federal tax still applies.
What changes in 2026
Georgia’s Department of Revenue states that the Georgia income tax rate has been reduced to a flat rate of 4.99% for 2026.
The federal rule that protects a nonresident
4 U.S.C. 114(a) bars a state income tax on retirement income of an individual “who is not a resident or domiciliary of such State”. Retirement income means certain plan payments made as a “series of substantially equal periodic payments”, so not every payment is covered.
Related: how Georgia taxes retirement income, whether Georgia taxes pensions, California to Georgia retirement taxes, Colorado to Georgia retirement taxes, out-of-state pension tax by state, and deferred compensation lump sums after a move.
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Answer againSources
- 2025 IT-511 Individual Income Tax Instruction Booklet (Georgia Department of Revenue): https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
- Important Tax Updates, 2026 Income Tax Changes (Georgia Department of Revenue): https://dor.georgia.gov/taxes/important-tax-updates
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Government Publishing Office, 2023 edition): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.