🍑 COUNTRY A Georgia VS 🌴 COUNTRY B Florida

Georgia allows residents aged 65 and older to exclude up to $65,000 in retirement income from state income tax ($130,000 for married couples filing jointly). This exclusion applies to pension income, IRA and 401(k) withdrawals, and annuity payments. Social Security is separately exempt on top of this exclusion. Retirees aged 62–64 receive a smaller exclusion of $35,000 per person. This makes Georgia one of the most retiree-friendly states in the Southeast for moderate income levels.

For retirees 65+ with retirement income (excluding Social Security) of $65,000 or less, Georgia and Florida are essentially identical on state income tax — both charge zero. The gap starts above $65,000. At $100K, Florida saves you about $1,817/year. At $150K, the saving is $4,412/year. At $250K, Florida saves roughly $9,602/year. If your retirement income is modest and mostly Social Security, the tax difference between Georgia and Florida may not justify the disruption of moving.

No. Georgia fully exempts Social Security benefits from state income tax. The $65,000 retirement exclusion is an additional benefit on top of the Social Security exemption. A Georgia retiree receiving $30,000 in Social Security and $65,000 in pension income pays zero Georgia state tax — the Social Security is exempt, and the pension is covered by the $65,000 exclusion. Only income above the exclusion is taxed at 5.19%.

This is where Georgia has a significant advantage over Florida. Georgia's property insurance costs are substantially lower — typically $1,200–$2,500/year for a mid-range home compared to Florida's $4,000–$8,000+ average. Florida's insurance crisis (caused by hurricane exposure and litigation issues) means some homeowners pay more in insurance annually than they would in Georgia income taxes. For retirees on fixed incomes, the $2,000–$5,000 annual insurance difference can outweigh the state income tax advantage Florida offers at moderate income levels.

No. Georgia abolished its state estate tax in 2014. There is also no Georgia inheritance tax. Both Georgia and Florida allow wealth to transfer to heirs without state-level estate taxes, following only the federal threshold ($13.61 million per person in 2024). This puts both states in the same category for estate planning purposes — significantly better than states like Massachusetts ($1M threshold) or Maryland (which has both estate and inheritance taxes).

Georgia transitioned to a flat income tax rate as part of a multi-year reform. The rate was 5.49% in 2024, stepping down to 5.39% in 2025, and is 5.19% in 2026, continuing to reduce toward a long-term target of 4.99% by 2029. For 2026, the rate is 5.19%. This applies to income above any applicable deductions and exclusions, including the $65,000 retirement income exclusion for retirees 65+. This flat-rate reform benefits high earners more than the previous progressive system.