Updated October 4, 2026. Quick answer: Partly. The 2025 booklet says “Up to $17,500 of military retirement income can be excluded” for a taxpayer under 62, and another $17,500 for one with more than $17,500 of earned income in Georgia. At 62 and older the general retirement exclusion applies instead.
How Georgia treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Military retirement income exclusion, claimed separately by each spouse |
| Under 62 | Up to $17,500, plus an additional $17,500 with more than $17,500 of earned income in Georgia |
| 62 and older | The general retirement income exclusion: $35,000 for ages 62 to 64 and $65,000 at 65 or older |
| Rate | 5.19% in the 2025 booklet |
A $30,000 example
A filer under 62 with $30,000 of retired pay and no earned income excludes $17,500, which leaves $30,000 minus $17,500 = $12,500. At the 2025 booklet rate of 5.19%, the tax on that is computed as $12,500 x 5.19% = $648.75 at most.
With more than $17,500 of Georgia earned income the second $17,500 is available as well, and the whole $30,000 is within the $35,000 total.
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What changes in 2026
No 2026 change to the military retirement exclusion is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Georgia taxes pensions, how Georgia taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- 2025 IT-511 Individual Income Tax Instruction Booklet: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
- Retirement Income Exclusion: https://dor.georgia.gov/retirement-income-exclusion
Sources: the primary documents linked above, read on October 4, 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.