Short answer: Georgia does not tax Social Security, and each Georgia resident can exclude up to $35,000 of retirement income from state tax at ages 62 to 64, rising to $65,000 at 65 and older. A married couple who both qualify can exclude up to $130,000. Planning which spouse receives which income can stretch that exclusion further.
What counts as retirement income
The exclusion covers income such as pensions, IRA and 401(k) withdrawals, interest, dividends, capital gains, and rental income, plus a limited amount of earned income. Social Security is already fully exempt in Georgia and does not use up the exclusion.
Why the exclusion is per person
Each spouse has their own exclusion, applied to income in their own name. In a hypothetical couple where one spouse's IRA produces $90,000 of withdrawals and the other has none, about $25,000 could be taxable to Georgia even though the couple's combined exclusion is $130,000. Spreading income across both spouses — through how accounts are titled and which IRA is drawn first — can reduce that.
Planning around it
- Roth conversions. A conversion counts as retirement income for this purpose, so conversions can sometimes fit under the Georgia exclusion even when they are taxed federally. See our Roth conversion guide.
- Ages 62 to 64. The lower $35,000 limit before 65 matters when deciding the order and size of early withdrawals.
- Moving to or from Georgia. Compare with other states using our tax-friendly states article.
Georgia rules change, and details such as the earned-income limit and how disability retirees qualify are set by the Georgia Department of Revenue. Check current rules or ask your CPA before filing. We coordinate this as part of our tax planning for Atlanta retirees.
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This article is for educational purposes only and is not individualized tax, legal, or investment advice. Examples are hypothetical illustrations, not actual clients, and do not guarantee any result. Lock Wealth Management is a registered investment adviser; registration does not imply a particular level of skill or training.
Frequently asked questions
- Does Georgia tax Social Security?
- No. Social Security benefits are exempt from Georgia income tax and do not count toward the retirement income exclusion.
- How much retirement income is tax-free in Georgia?
- Up to $35,000 per person for residents 62 to 64 and up to $65,000 per person for residents 65 and older, subject to current Georgia rules.
- Can a married couple both use the Georgia exclusion?
- Yes. Each qualifying spouse has their own exclusion for income in their own name, for a combined maximum of $130,000 at 65 and older.
- Do IRA withdrawals and Roth conversions count?
- Yes. IRA and 401(k) distributions, including Roth conversions, generally count as retirement income eligible for the exclusion.
- Is Georgia a good state to retire in for taxes?
- For many retirees, yes, because Social Security is exempt and the exclusion shelters a meaningful amount of other income. Property taxes and your own income mix still matter.
