Updated October 16, 2026. Quick answer: Georgia’s documents read do not mention inherited IRAs; they offer a retirement income exclusion tested on the taxpayer’s age, “$65,000 for taxpayers who are 65 years of age or older”, and do not say whether a younger beneficiary can use it.
Georgia at a glance
| Item | What the documents say |
|---|---|
| How the state taxes retirement-account income | Taxed as income; a retirement income exclusion that depends on the taxpayer’s age |
| Do the state’s documents address beneficiaries? | Not addressed: the documents read do not mention inherited accounts |
| Retirement exclusion or credit | $35,000 at ages 62 to 64 (or under 62 and permanently disabled); $65,000 at 65 or older |
| Rate in the documents read | 5.19% for 2025; the Department says 4.99% flat for 2026 |
| State inheritance or estate tax | Not mentioned in the documents read |
| Changed for 2026? | The Department’s Important Tax Updates page lists a reduction to a flat 4.99% under 2026 Income Tax Changes |
What the Georgia documents say
The 2025 IT-511 booklet describes the retirement income exclusion by age: $35,000 for taxpayers 62 to 64 (or under 62 and permanently disabled) and $65,000 for taxpayers 65 or older. It adds that “The exclusion is available for the taxpayer and their spouse”.
The booklet prints the 2025 rate: “Effective January 1, 2025, the income tax rate is 5.19%”. The Department’s Important Tax Updates page says the rate “has been reduced to a flat rate of 4.99%” under its 2026 Income Tax Changes heading.
The federal 10-year rule and your Georgia tax year
IRS Publication 590-B says a beneficiary may be required to take the entire account balance by the “end of the 10th year following the year of the owner’s death”, with exceptions for certain beneficiaries. Because the balance generally has to come out within that window, the timing of each withdrawal decides which tax year it lands in. See the 10-year rule and annual RMDs, lump sum versus spreading withdrawals and inherited IRA rules.
Withholding and other state taxes
Whether a state withholds from a withdrawal is a separate rule: see state withholding on retirement withdrawals. For Georgia’s own death taxes, see Georgia inheritance tax.
What the documents do not say
- The documents read do not mention inherited accounts or beneficiaries of retirement accounts.
- They do not say whether the retirement income must be the taxpayer’s own, so whether a beneficiary can use the exclusion is not established.
- They say nothing about a deduction or credit for estate tax or income in respect of a decedent.
Common mistakes
- Assuming Georgia’s rule for your own retirement income also covers an account you inherited: read whether its documents address beneficiaries, and confirm the point with a Georgia preparer.
Related: state tax on inherited IRA withdrawals, state by state, whether Georgia taxes 401(k) and IRA withdrawals, Georgia retirement taxes, Georgia inheritance tax, inherited IRA rules, spouse versus non-spouse beneficiary rules, and state withholding on retirement withdrawals.
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Answer againSources
- 2025 IT-511 Georgia Individual Income Tax Forms and Instructions Booklet: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
- Important Tax Updates: https://dor.georgia.gov/taxes/important-tax-updates
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.