Update 4-12-2021: Sometime after this original blog post, Georgia Legislature capped the income exclusion at $35,000 if you’re 62-64. Age 65 and older, the exemption rises to $65,000. If a couple qualifies for both, I understand the total exclusion is $65,000 (of qualified income…excluding pensions and other income sources), but I don’t think they qualify for two $65,000 exemptions. Consult your tax professional for actual exclusion application.
Update 2-18-2016: As of the 2016 tax year, all pensions and other retirement income will be exempt from Georgia income taxes
Senate Passes GA Taxpayer Relief Act
ATLANTA (April 14, 2010) – On the eve of national tax day, the Georgia General Assembly has passed major tax relief, HB 1055 called by some the “Georgia Taxpayer Relief Act of 2010”. The measure eliminates retirement income tax on Georgia seniors and eliminates the state property tax. Senate Majority Leader Chip Rogers (R-Woodstock) lead the efforts in the Senate to help add the tax elimination measures to HB 1055
Georgia HB 1055 – May 2010
Taxpayer Relief Act of 2010
From the IT 511 GA DOR handbook:
A 2010 Georgia law began to phase out Georgia’s income tax on retirement income beginning in 2012 and eliminates taxes entirely by 2016 ($65K, $100K; $200K; and all income in 2016 and beyond). Qualifications include taxpayer being 65 or older during any time within the year.
Evidently, under current law, seniors who were 62 or older could exclude up to $35K of income before being levied Georgia income tax.
So what about those who are 62-65? Are they under the current law and still have to pay Georgia income taxes over $35,000 annual income? Maybe!
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