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Taxes in Georgia
From moderate income and sales taxes to Social Security exemptions and senior property tax relief, Georgia’s tax structure offers partial retirement-friendly benefits.
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At a glance:
- Georgia combines moderate income and sales taxes with meaningful exemptions for retirees, including full Social Security tax relief and partial exclusions on retirement income for older residents.
- Seniors may also qualify for property tax exemptions that reduce or eliminate taxes on portions of their home’s assessed value, depending on age and income.
- While the state has no estate or inheritance tax, retirees still face standard property taxes and limited deductions compared to some more tax-friendly states.
Retirees might find Georgia taxes peachy, as the state offers several key exemptions for older residents. Below, we explain various Georgia state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
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Georgia Tax Rates
| State Sales Tax | 4% |
| Avg State/Local Sales Tax | 7.38% |
| Gas Tax | $0.3305 per gallon |
| Diesel Tax | $0.37 per gallon |
| Cigarette Tax | $0.37 per pack |
| Income Tax | 5.49% |
| Effective Tax Rate | 4.83% |
| Property Tax | 0.72% |
| Social Security Tax | None |
| Medical/Dental Deduction | None |
| Federal Income Tax Deduction | None |
| Retirement Tax | Partial |
Georgia Tax Rates Explained
Georgia Sales Tax
4%. Some prescription drugs and medical supplies are exempt. Local taxes may add up to an additional 4.9%. Local municipalities may tax groceries, which have no state sales tax.
Georgia Income Tax
A flat tax of 5.39% is applied to align personal and corporate tax rate.
Georgia Property Taxes
Georgia’s average effective property tax rate is 0.72%, or $1,267 on the median home value of $176,000. Real estate taxes are assessed and administered by counties.
Homeowners aged 62 and older who earn $10,000 or less can apply to have up to $10,000 of assessed property value exempted from school taxes. Taxpayers who are at least 62 years old with a family income of up to $30,000 may qualify for an exemption from state and county property taxes. The amount of tax relief is determined by how much the assessed value of the home exceeds the preceding year’s assessed value.
Georgia’s standard homestead exemption is $5,000 deducted from 40% of the property’s assessed value. Residents who are 62 or older and earn $10,000 are eligible to double the exemption to $4,000. Some counties offer more generous homestead deductions to seniors.
See Georgia’s County Property Tax Facts to learn about taxes in specific counties.
Georgia Retirement Taxes
Social Security is tax-exempt. Georgia offers an income tax exclusion to taxpayers who are 62 years of age or older or individuals with a total and permanent disability. In 2022, Georgia increased the amount of earned income allowed to be included in the retirement income exemption from $4,000 to $5,000. Retirement income exceeding the maximum adjustable amount will be taxed at the normal rate.
Georgia Inheritance and Estate Taxes
Georgia levies no estate tax or inheritance tax.