You already know that Georgia is a great place to retire, and our forgiving tax environment is just one reason why. In fact, according to Kiplinger, Georgia is one of the top ten most tax-friendly states for retirees in the country! Social Security income is exempt, and for those aged 62-64, so is up to $35,000 of most types of retirement income. Those aged 65 and up qualify for exemptions up to $65,000 per taxpayer.
The statewide sales tax is only 4%, though jurisdictions may impose their own additional sales taxes. But seniors often qualify for deductions from property taxes. The income tax range is from 1%-6% and there are different tax brackets depending on whether one is filing jointly as a married couple, separately as a married couple, or individually.
For those 62 and older, up to $10,000 of their property’s assessed value is exempt from school taxes. And those aged 65 and up can claim an exemption from all state property taxes on their home and up to 10 acres of the land surrounding it.
Taxpayers who are 62 and older are also eligible for a retirement income exclusion. Retirement income includes annuities, interest, dividends, net income from rental property, capital gains, royalties, and the first $4,000 of earned income (such as wages). Railroad retirement income is exempt. There is no inheritance tax or estate tax. IRAs, 401(k)s, and private and public pensions all qualify for retirement income exemption.
You deserve to keep what’s yours, so be sure to ask your qualified tax professional or your Big Canoe Realty agent, for more information about Georgia’s peachy tax climate!