Virginia and Georgia are closely matched on income tax for most working-age earners, with Virginia’s 5.75% top rate slightly above Georgia’s 5.49% flat tax. The savings at $100,000 income are almost negligible (roughly $11 a year in Virginia’s favour). The real story is for retirees: Georgia offers a $65,000 retirement income exemption for residents aged 65 and over, meaning Social Security, pension, and retirement account income up to that threshold goes untaxed—Virginia offers no equivalent. Virginia does have an advantage on grocery shopping, with no state sales tax on food, versus Georgia’s 4% grocery rate. Property taxes are similar, with Virginia averaging about 0.82% and Georgia about 0.91%.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🏛️ Virginia

5.75%

Top Rate from $17K+

Progressive brackets from 2% to 5.75%; no grocery sales tax

🍑 Georgia

5.49%

Flat Rate (Falling to 4.99%)

5.49% flat income tax, scheduled reductions through 2029

Typical Annual Savings

At $150,000 income:

$261

That is $22/month back in your pocket!

Tax Savings by Income Level

IncomeVA TaxGA TaxSavings10-Year
$50,000 $2,663$2,745$82$820
$75,000 $4,076$4,118$42$420
$100,000 $5,501$5,490-$11-$110
$150,000 $8,351$8,235$116$1,160
$250,000 $14,051$13,725$326$3,260
$500,000 $28,426$27,450$976$9,760
💡

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Virginia Pros and Cons

✅ Pros

  • No state sales tax on groceries
  • Lower property tax rate (~0.82%) than GA
  • Strong Northern Virginia job market (government, tech, defence)
  • Slightly lower income tax on mid-to-high incomes

❌ Cons

  • No retirement income exemption for senior residents
  • High cost of living in Northern Virginia/DC suburbs
  • Top income tax bracket kicks in at just $17,000
  • Higher car property taxes (vehicles taxed annually)

Georgia Pros and Cons

✅ Pros

  • $65,000 retirement income exemption for residents 65+
  • 5.49% flat income tax declining to 4.99% by 2029
  • Lower overall cost of living than Northern Virginia
  • Strong Atlanta-based economy and job growth

❌ Cons

  • 4% state sales tax on groceries
  • Slightly higher effective property tax rate (~0.91%)
  • Income tax rate higher than neighbouring Tennessee (0%)
  • Hurricane and severe storm risk in southern counties

Frequently Asked Questions

Q: Which state is better for retirees: Virginia or Georgia?

Georgia is significantly better for retirees aged 65 and over. Georgia offers a $65,000 retirement income exemption—meaning Social Security, pension income, and retirement account distributions up to $65,000 are not taxed at the state level. Virginia offers no comparable exemption, so all retirement income is taxed at up to 5.75%. A retiree with $65,000 in annual pension income saves roughly $3,569 per year in Georgia versus Virginia.

Q: Will Georgia’s income tax rate keep falling?

Yes, if revenue conditions are met. Georgia passed legislation to reduce the flat rate from 5.49% gradually toward 4.99% by 2029. Each annual reduction depends on state revenue meeting targets set by the legislature. As of 2026 the rate stands at 5.49%. This trajectory makes Georgia increasingly attractive relative to Virginia, whose top rate of 5.75% has no scheduled reduction.

Q: Does Virginia tax grocery purchases?

No. Virginia eliminated the state sales tax on groceries in 2023. Purchases of food for home consumption are exempt from the 4.3% state sales tax, though some local taxes may apply. Georgia charges 4% on groceries. For a family spending $800/month on groceries, Virginia’s exemption is worth roughly $384 per year compared to Georgia.

Q: How do property taxes compare between Virginia and Georgia?

Virginia’s effective property tax rate averages about 0.82%, while Georgia averages about 0.91%. On a $400,000 home that difference is roughly $360 per year in favour of Virginia. Note that both states allow counties and cities to set their own rates, so actual bills vary significantly by location—Northern Virginia and Atlanta suburbs can both carry higher than average rates.

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