2026 Tax Year

Retirement Taxes in Georgia (2026)

Georgia taxes income at an effective 5.39%, exempts Social Security entirely, and exempts the first $65,000 of pension income. On our standard retiree profile it ranks 6 of 50 for total state tax burden at $7,609 a year, with property tax at an effective 0.78% and combined sales tax at 7.49%.

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Georgia at a glance

State income tax

5.39%

After a $24,000 standard deduction

Social Security

Fully exempt

State treatment only; federal rules still apply

401(k) / IRA withdrawals

First $65,000 exempt

Pension income

First $65,000 exempt

Effective property tax

0.78%

$3,885 on a $500,000 home

Combined sales tax

7.49%

State plus average local rate

Homeowners insurance

$1,655/yr

Average annual HO-3 premium

Cost index (goods & services)

98.1

US average = 100, BEA 2024. Housing excluded.

Estate / inheritance tax

Neither

Cost index compares goods and services only — housing is excluded because it's captured separately in property tax. Source: BEA Regional Price Parities, 2024, US average = 100.

Rankings and dollar figures on this page use one documented profile: $126,000 of gross retirement income ($36,000 Social Security, $45,000 in 401(k)/IRA withdrawals, $18,000 pension, $12,000 dividends, $15,000 part-time earnings), a $650,000 home, and $32,000 of taxable annual spending. It is the same profile the calculator loads with, so you can reproduce every number here.

Where Georgia ranks

Georgia places 6 of 50 states by total state tax burden on the standard profile — $7,609 a year against a $10,910 50-state average, or 30% below the 50-state average.

  • State income tax rate5.39%25% above the 50-state average
  • Effective property tax rate0.78%14% below the 50-state average
  • Combined sales tax rate7.49%13% above the 50-state average
  • Homeowners insurance premium$1,655/yr11% above the 50-state average
  • Cost of goods & services98.12% below the 50-state average

Comparisons are unweighted averages across the 50 states on our standard retiree profile, not population-weighted national figures.

How it compares to its peers

The states closest to Georgia on total burden, using the same profile:

What this means for a move

On the standard profile, 66% of the $7,609 annual burden in Georgia is property tax — $5,051, against $2,397 of sales tax and $162 of income tax. Raising or lowering taxable withdrawals changes the 5.39% income tax line directly, so the total is sensitive to how much you draw each year.

Every $100,000 of home value costs $777 a year in Georgia property tax, so a $500,000 house carries roughly $3,885. Average homeowners insurance runs $1,655 a year, 11% above the 50-state average. Goods and services price 1.9% below the US average (BEA 2024, housing excluded), which sits on top of the tax figure rather than inside it.

Georgia retirement tax FAQ

Does Georgia tax Social Security benefits?

No. Georgia does not tax Social Security benefits at the state level. Federal taxation of benefits still applies based on your combined income.

How does Georgia tax 401(k) withdrawals and pension income?

401(k) and IRA withdrawals: first $65,000 exempt. Pension income: first $65,000 exempt. Anything left over is taxed at an effective 5.39%.

What is the property tax rate in Georgia?

Georgia's effective property tax rate is 0.78% of home value — 14% below the 50-state average. On a $500,000 home that is about $3,885 a year.

Where does Georgia rank for retirement taxes?

Georgia ranks 6 of 50 states, lowest total burden first, on our standard retiree profile: $7,609 a year in combined state income, property and sales tax, versus a $10,910 unweighted average across the 50 states.

Compare Georgia to your current state

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