Georgia was recently listed at #5 on the list of Top Tax-Friendly States for Retirees by Kiplinger's Personal Finance Magazine on MSN Money.
According to the article, the State Income Tax in Georgia is 1% to 6%, State Sales Tax is 4% and there is no Estate or Inheritance Tax.
The state of Georgia is working to attract retirees to the gorgeous Peach State with a large exemption for income taxes on retirement income. Kiplinger's mentions that taxpayers ages 62 to 64 can exclude up to $35,000 per person from state income taxes for a total of $70,000 per couple. Georgia residents ages 65 and older can exclude up to $65,000 of retirement income or $130,000 per couple from state income taxes in 2012.
What is considered retirement income? It is broadly defined as interest, dividends, capital gains, net income from rental property, pensions, annuities and up to $4,000 of earned income.
Check with your accountant or tax professional for more information or if you have any questions regarding the taxes in your area and how they affect you.
Comments(3)