Partly taxed
How Georgia taxes retirement income
Georgia does not tax Social Security, and it has one of the largest retirement income exclusions in the country. Each person can exclude up to $35,000 a year at ages 62 to 64, or up to $65,000 at 65 and older. People under 62 who are permanently disabled qualify for the $35,000 amount.
The exclusion covers pensions, including TRS of Georgia and ERS pensions and pensions from other states, plus IRA and 401(k) withdrawals, interest, dividends, capital gains and rental income. Up to $5,000 of it can be earned income from a job. Spouses each qualify on their own, so a married couple who are both 65 can exclude up to $130,000.
In practice, most Georgia retirees owe little or no state tax. A 66-year-old retired teacher with a $48,000 pension and $10,000 of IRA withdrawals has $58,000 of retirement income, all of it under the $65,000 limit.
Georgia public pensions
For the formula, payment dates and raises in your plan, see Georgia TRS.
Questions
Does Georgia tax TRS pensions?
Only above the exclusion: $35,000 per person at 62–64, or $65,000 at 65 and older.
Does Georgia tax Social Security?
No.
Can both spouses claim the exclusion?
Yes, each spouse who qualifies by age or disability can claim it on their own income.