Retiring takes a lot of hard work, saving, and discipline. However, if you chose to retire in Georgia, there are some great tax benefits that make the transition to retirement a little cheaper and easier. Here are the main benefits of retiring in GA:
- GA Retirement Income Exclusion: This allows GA taxpayers (age 65 and over) to exclude up to $65,000 of retirement income from taxation ($130,000 per couple). Retirement income includes:
- Income from pensions and annuities
- Interest income
- Dividend income
- Net income from rental property
- Capital gains income
- Income from royalties
- Up to $4,000 of earned income
- Social Security is exempt from state taxes in Georgia
For these two reasons, most retirees in Georgia will pay very little state income taxes during their golden years.
Check out this map from Kiplinger.com that shows the most and least tax-friendly states in the USA. Way to go Georgia!