Georgia's $65,000-per-person exclusion (65+) means a retiree receiving $1,980/month ($23,760/year) from an annuity — or even a couple receiving $5,000/month jointly — typically pays zero Georgia income tax on that income. Only high annuity incomes above the exclusion face the state's flat rate, making Georgia effectively tax-free for the vast majority of annuity holders 65 and older.
Annuity Calculator for Georgia Residents
Georgia Annuity Tax Treatment
Georgia taxes income at a flat rate of roughly 5.2% (with scheduled annual reductions toward 4.99%), but its Retirement Income Exclusion shelters most annuity income for older retirees: taxpayers 65 and older can exclude up to $65,000 per person of retirement income ($130,000 per couple) from Georgia tax; those 62–64 can exclude up to $35,000 per person. Annuity income qualifies for this exclusion.
Georgia Retirement Demographics
Georgia has approximately 1.6 million residents aged 65 and older (about 15% of the population), with strong retiree in-migration to Atlanta's northern suburbs, Savannah, and the coastal region. Bankrate and Kiplinger have repeatedly ranked Georgia among the top states to retire on tax friendliness and cost of living.
State-Specific Planning Facts
- Retirement Income Exclusion: up to $65,000 per person (65+) or $35,000 (62–64) of retirement income — including annuity income — exempt from Georgia tax
- Social Security benefits fully exempt from Georgia state income tax
- Flat income tax of roughly 5.2%, with legislated annual reductions scheduled toward 4.99% — applies only to income above the exclusion
- State guaranty association: Georgia Life and Health Insurance Guaranty Association — $250,000 per insurer for annuity benefits
- No state estate or inheritance tax