How Georgia Taxes Retirees – (Blog)

Georgia is one of the most tax-friendly states for retirees. In fact, Georgia is even more tax-friendly than its neighbor to the north, Tennessee even though Tennessee has no income tax. Weird right?

And this is a perfect example of the need to look beyond just the states with no income tax as a place to retire that is tax-friendly.

For example, in GA, if you are married and have income up to $170k, there is NO TAX!

While it’s sales tax is the 20th highest in the US, the state does not tax food. Individual municipalities can though. so do your research on which county taxes food.

But, think about it, what is one largest consumption products? You got it, groceries. So, in GA, you can get by with a minimal tax on groceries, if any at all.

Property taxes average just under 1%. Which puts Georgia in the middle of all 50 states. But because the median house value is quite low, the actual dollar amount in property tax is low relative to a lot of other states in the US.

It needs to be understood that each county can allow its own homestead exemption for property taxes on top of what the state allow. I did not know this and neglected to file my own homestead exemption which cost me $3500.

Once your over 65 years old, you can claim an exemption from ALL state property taxes as well! That could prove to be pretty significant.

Think about it, in GA if you’re over 65, you pay 0 income tax and 0 property tax, within certain thresholds of course You only pay sales tax on non-food items.

Finally, you will pay hefty fee to register your vehicle for the first time. Trust me, it can easily go into the $1000s. But after that, your vehicle tax is well below $100 a yer.

So, all in all, GA is quite favorable from a tax perspective. Nice climate, nice tax structure, it’s a great place to live.

© Copyright 2018 Heritage Wealth Planning