Georgia does not tax Social Security benefits, and it lets most retirees shelter a large portion of their other retirement income from state tax as well. If you’re 65 or older, you can exclude up to $65,000 per person of qualifying retirement income. If you’re 62 to 64, the cap is $35,000. So the short answer to whether Georgia taxes Social Security or retirement income is: never the Social Security, and often none of the rest either.
Social Security Is Fully Exempt
Georgia excludes 100% of Social Security income from state income tax. Your total income doesn’t matter, and neither does the share of your benefits that’s taxable federally. You subtract the entire federally taxable portion on Schedule 1 of Georgia Form 500, which drops your state taxable income by the same amount.1Department of Revenue. Retirees – FAQ
Railroad Retirement benefits get identical treatment. If they’re taxable on your federal return, Georgia still excludes them in full.1Department of Revenue. Retirees – FAQ
The Retirement Income Exclusion
Beyond Social Security, Georgia lets qualifying taxpayers subtract a substantial amount of other retirement income. The cap depends on your age:
- Ages 62 to 64: up to $35,000 per person2Justia Law. Georgia Code 48-7-27 – Computation of Taxable Net Income
- Age 65 and older: up to $65,000 per person3Department of Revenue. Retirement Income Exclusion
- Totally and permanently disabled, any age: up to $35,000 per person3Department of Revenue. Retirement Income Exclusion
Married couples filing jointly qualify independently. If both spouses are 65 or older, the household can exclude up to $130,000. Each spouse has to meet the age or disability test on their own, though. A 66-year-old married to a 60-year-old claims the exclusion alone; the younger spouse’s income doesn’t share the cap.3Department of Revenue. Retirement Income Exclusion
What Income Qualifies
The exclusion covers more than just pension checks. Georgia’s definition of retirement income takes in:3Department of Revenue. Retirement Income Exclusion
- Pension and annuity distributions from employer plans, 401(k)s, 403(b)s, and traditional IRAs
- Interest, dividends, capital gains, and royalties
- Net rental income
- Up to $5,000 of wages, salary, or self-employment income
The earned income piece surprises people. If you’re 65 and working part-time, up to $5,000 of those wages folds into the exclusion. The earned and unearned pieces are calculated separately, but the combined total can’t exceed your age-based cap.4Cornell Law School. Ga. Comp. R. and Regs. R. 560-7-4-.02 – Procedures Governing Retirement Income Exclusion A 65-year-old with $62,000 in pension income and $5,000 in wages could exclude the whole $67,000. If the pension alone reached $65,000, the earned income slice would shrink to fit.
Military Retirees Under 62
Veterans who haven’t yet turned 62 get a separate benefit. They can exclude up to $17,500 of military retirement pay, plus another $17,500 if they also have at least $17,500 in earned income. The combined ceiling reaches $35,000.5Georgia Department of Veterans Service. Military Retirement Income Tax Exemption
At 62, a military retiree moves into the standard retirement income exclusion and picks up the $35,000 or $65,000 cap that applies to every Georgia retiree.5Georgia Department of Veterans Service. Military Retirement Income Tax Exemption
What Happens Above the Exclusion
Retirement income over the exclusion is taxed at Georgia’s flat rate. For 2025, that rate is 5.19%.6Department of Revenue. Important Tax Updates Under 2022 legislation, the rate has been stepping down toward an eventual 4.99%.
Georgia also offers a personal exemption that reduces taxable income before the flat rate is applied: $12,000 for single filers, with the joint figure scheduled to rise to $20,000 for 2026. That relief stacks on top of the retirement-specific exclusions.
You May Still Need to File
Even if the exclusions zero out your Georgia tax, filing may still be required. Full-year residents must file Georgia Form 500 if they’re required to file a federal return or if their gross income tops the personal exemption threshold ($12,000 single, $24,000 married filing jointly).7Department of Revenue. Residency Filing Requirements
Filing the return is how you actually claim the Social Security subtraction and the retirement income exclusion; both go on Schedule 1 of Form 500.1Department of Revenue. Retirees – FAQ If Georgia tax was withheld from your pension or IRA distributions during the year, the return is also the only route to a refund.
Skipping the filing because you expect to owe nothing is a mistake. Georgia charges a 5% per month penalty for failure to file, capped at 25%, plus 0.5% per month for failure to pay.8Justia Law. Georgia Code 48-7-86 – Penalties for Nonpayment, Failure to Pay, or Underpayment of Taxes A missed deadline can produce penalty notices even when the underlying bill was zero.