Taxes in Georgia

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.

Georgia Tax Rates

State Sales Tax	4%
Avg State/Local Sales Tax	7.37%
Gas Tax	$0.29 per gallon
Diesel Tax	$0.32 per gallon
Cigarette Tax	$0.37 per pack
Income Tax	5.75%
Effective Tax Rate:	4.83%
Property Tax	0.92%
Social Security Tax	None
Medical/Dental Deduction:	None
Federal Income Tax Deduction:	None
Retirement Tax	Partial

Georgia State Taxes 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 suspended the gas tax for much of 2022, but it will likely resume in 2023.

Georgia Income Taxes

A flat tax of 5.49, per the 2022 tax reform update.

Georgia Property Taxes

Georgia’s average effective property tax rate is 0.92%, or $1,623 on the median home value of $176,000. Real estate taxes are assessed and administered by counties.

Homeowners age 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 $2,000 deducted from 40% of the property’s assessed value. Residents who are 65 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 Estate and Inheritance Taxes

Georgia levies no estate tax or inheritance tax.