Georgia Retirement

Most forms of retirement income are exempt from Georgia's state income tax if taxpayers file the proper paperwork. Persons over 62 years old in Georgia can claim the Retirement Income Exclusion.

Under this exclusion, income from annuities, pensions, IRAs, dividend interest, capital gains, royalties, and rental properties can be deducted from a taxpayer's state income tax. This exclusion is generous - in 2010 a Georgia taxpayer could claim up to $35,000 for the Retirement Income Exclusion. To get the Exclusion, a person will have to complete the Retirement Income Exclusion worksheet on page 13 of the Georgia Individual Income Tax Instruction Booklet or form IT-551.

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Georgia Income Taxes

All residents of Georgia that have to file a federal income return or have income that exceeds the state's standard deduction are required to file a state income tax return. The standard deduction was $6,500 for individuals over 65 and $5,000 for individuals under 65 in 2010. The standard deduction for married couples that filed jointly was $11,000. Part-time residents of Georgia are required to file a tax return if the income they earn in Georgia exceeds $5,000.

Retired persons in Georgia will have to pay the Individual Estimated Tax. Taxpayers that file Individual Estimated Tax receive a $2,300 standard deduction for singles and a $3,000 married filing jointly deduction. Filers also qualify for a $2,300 personal deduction. Persons over 65 years old are eligible for an extra deduction of $1,300. Individuals that file Individual Estimated Tax are eligible for the Retirement Income Exclusion.

The Individual Estimated Income tax rate for a married couple filing jointly would be 1% for the $1,000 of taxable income, 2% for $1,000-$3,000 of taxable income, 3% for $3,000-$5,000 of taxable income, 4% for $5,000-$7,000 taxable income, 5% for $7,000-$10,000 of taxable income and 6% for any amount of taxable income over $10,000.

Georgia Sales Tax

There is a 4% State Sales Tax in Georgia. As in most states, county and city governments charge their own sales taxes that increase the rate. For example, the city of Atlanta charges an additional 1% in sales taxes.

Most foods sold at grocery stores are not subject to the Georgia Sales Tax. Prescription drugs, hearing aids, and most medical devices and supplies are not subject to the sales tax as well.

Property Taxes in Georgia

Property taxes in Georgia are set by the county board of tax assessors for each county. This means that property taxes can vary widely from county to county. The best way to determine what the property taxes for a parcel of land would be is to contact the particularcounty of interest. The Standard Property Tax rate in Georgia is a mill levy of 12 to 17. Property taxes in unincorporated areas are generally lower in Georgia.

Automobiles are considered property in Georgia and subject to property taxes. The tax on a vehicle in Georgia is based on the vehicle's value and is due every year. The Georgia Department of Revenue publishes Manuals that can help car owners determine what this tax would be.

Capital: Atlanta
Cost of Living Rank: #9
Sales Tax: 4.0%
Income Tax: 1.0% - 6.0%
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