How Georgia taxes retirement income
Georgia does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). Social Security and Railroad Retirement benefits are fully exempt regardless of age. Taxpayers 65+ may exclude up to $65,000 of retirement income (pensions, annuities, 401k/IRA withdrawals, interest, dividends, capital gains, net rental income, royalties, plus up to $5,000 of earned income); taxpayers 62-64, or under 62 and permanently/totally disabled, may exclude up to $35,000. Each spouse qualifies separately on a joint return (O.C.G.A. 48-7-27; 2025 IT-511 Instructions, p.21). Retirement income above the applicable cap, and all retirement income for taxpayers under 62 without a qualifying disability, is taxed as ordinary income at the flat rate, corrected taxes401kIraWithdrawals from false to partial to reflect this. Separately, HB 463 (2026) raises the 65+ exclusion to $70,000 effective tax year 2027.
Retirement income tax in Georgia, at a glance
| Income type | Taxed by Georgia? |
|---|---|
| Social Security | No |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | Yes |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.79% of home value |
Does Georgia tax Social Security benefits?
No. Georgia does not tax Social Security benefits.
Does Georgia tax pensions and 401(k) or IRA withdrawals?
Partly. Social Security and Railroad Retirement benefits are fully exempt regardless of age. Taxpayers 65+ may exclude up to $65,000 of retirement income (pensions, annuities, 401k/IRA withdrawals, interest, dividends, capital gains, net rental income, royalties, plus up to $5,000 of earned income); taxpayers 62-64, or under 62 and permanently/totally disabled, may exclude up to $35,000. Each spouse qualifies separately on a joint return (O.C.G.A. 48-7-27; 2025 IT-511 Instructions, p.21). Retirement income above the applicable cap, and all retirement income for taxpayers under 62 without a qualifying disability, is taxed as ordinary income at the flat rate, corrected taxes401kIraWithdrawals from false to partial to reflect this. Separately, HB 463 (2026) raises the 65+ exclusion to $70,000 effective tax year 2027.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Georgia taxation of retirement income (Social Security, pensions, 401(k)/IRA): Georgia Department of Revenue / Taxation.