Georgia does not tax Social Security benefits, but it does tax most pension income

Georgia exempts all Social Security income from state income tax. Pension income is taxed as ordinary income at Georgia's standard rates, which range from 1% to 5.75% depending on your total income. The one exception is the Georgia Earned Income Tax Credit for Seniors, which can reduce or eliminate tax on certain pension and retirement distributions if you meet income and age requirements.

This means your Social Security check arrives untouched by Georgia state tax, but money from a 401(k), IRA, pension plan, or annuity will be subject to state income tax unless you fall into a narrow category of retirees who may have access to for the senior tax credit.

Key Takeaways

  • Social Security benefits are completely exempt from Georgia state income tax, no matter your age or income level.
  • Pensions, 401(k) withdrawals, and IRA distributions are taxed as ordinary income at Georgia rates between 1% and 5.75%.
  • The Georgia Earned Income Tax Credit for Seniors can reduce pension tax if you are 65 or older and meet income limits, but the credit phases out quickly as income rises.
  • Federal tax treatment is separate — Social Security may be taxable at the federal level depending on your combined income, even though Georgia does not tax it.

How Georgia taxes pension and retirement account withdrawals

When you withdraw money from a traditional IRA, 401(k), 403(b), or similar retirement account, Georgia treats that withdrawal as taxable income. The state applies its progressive tax rate schedule, meaning higher withdrawals are taxed at higher rates. For the 2024 tax year, Georgia's rates start at 1% on the first $750 of taxable income and reach 5.75% on income above $7,000.

Pension payments from a former employer — whether from a defined benefit plan, TIAA-CREF, or military retirement — are also taxed as ordinary income. There is no special pension exclusion in Georgia law. If you receive $2,000 per month from a pension, that full $24,000 per year counts as taxable income for Georgia purposes.

Roth IRA withdrawals of contributions (the money you put in) are not taxed, but withdrawals of earnings are taxed unless you meet specific conditions. Most retirees should verify with a tax preparer whether their Roth withdrawal is a contribution or an earning before filing.

The Georgia Earned Income Tax Credit for Seniors and what it covers

Georgia offers a state earned income tax credit specifically for people 65 and older. This credit can reduce or eliminate state income tax on certain types of retirement income, but it has strict income limits and phases out quickly. The credit applies to earned income (wages from work), Social Security, and certain pension and retirement distributions.

To claim the credit, you must be 65 or older by December 31 of the tax year, have Georgia gross income below a threshold (which varies by filing status), and file a Georgia tax return. The credit amount depends on your income level and filing status. Because the credit phases out as income rises, many middle-income retirees find they receive little to no benefit.

You claim this credit on your Georgia tax return using Form IT-511. The Georgia Department of Revenue website lists the current income thresholds and credit amounts, which change annually. If you think you might may have access to, it is worth checking the current year's limits before you file, since the credit can save you several hundred dollars if your income is low enough.

Federal taxation of Social Security and pensions is separate from Georgia tax

Georgia's decision not to tax Social Security does not mean Social Security is tax-free at the federal level. The IRS taxes Social Security benefits based on your "combined income" — a calculation that includes half your Social Security plus all other income. If your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), up to 85% of your Social Security can be subject to federal income tax.

Pensions and retirement account withdrawals are always taxable at the federal level. The federal tax rate depends on your total income and filing status, and is separate from Georgia's state rate. A retiree in Georgia might owe 5.75% to the state and 12% to the federal government on the same pension withdrawal, for example.

When you file your federal return, you report Social Security on Form SSA-1099 and pension income on Form 1099-R. Your state return uses the same income figures but applies Georgia's rules, which exempt Social Security and tax pensions at the state rate.

How to report pension and Social Security income on your Georgia return

Social Security income does not go on your Georgia tax return at all. You do not report it, and it does not count toward your Georgia taxable income. If you file a federal return, you will report Social Security there, but Georgia ignores it entirely.

Pension and retirement account income goes on your Georgia return as ordinary income. You report the full amount on Form IT-40 (the Georgia individual income tax return) in the income section. The amount should match what appears on your 1099-R form from the payer. If you received multiple 1099-Rs from different pensions or accounts, you add them all together and report the total.

If you think you might may have access to for the Georgia Earned Income Tax Credit for Seniors, you also file Form IT-511 with your return. This form calculates whether you are may be able to access and how much credit you can claim.

Military pensions and other special retirement income

Military retirement pay is taxed by Georgia the same way as any other pension. There is no military pension exemption in Georgia law. If you receive $3,000 per month from military retirement, that full amount is subject to Georgia income tax at the standard rates.

Railroad Retirement benefits are treated similarly to Social Security for federal purposes but may be handled differently by Georgia. If you receive railroad retirement income, check the current Georgia Department of Revenue guidance or speak with a tax preparer, as the treatment can vary depending on the type of benefit.

Survivor benefits paid to a spouse or dependent of a deceased retiree are taxed according to the same rules as the original pension or benefit would have been. If the deceased person's pension would have been taxable in Georgia, the survivor benefit is also taxable.

Planning your withdrawals to minimize Georgia state tax

Because Georgia taxes pensions and retirement accounts but not Social Security, the order in which you withdraw money matters. If you have a choice, taking Social Security first and delaying pension withdrawals can reduce your Georgia tax bill, though it may increase your federal tax.

If you have both a traditional IRA and a Roth IRA, withdrawing from the Roth first (up to the amount of your contributions) avoids Georgia tax on that portion. Contributions to a Roth are never taxed; only earnings are, and only under certain conditions.

Some retirees move to Georgia after retiring elsewhere and bring pension income with them. Georgia taxes that pension income the same as it taxes pensions earned by Georgia residents. There is no break for out-of-state pensions.

Frequently Asked Questions

Will I owe Georgia state tax on my Social Security?

No. Georgia exempts all Social Security income from state income tax. You will not owe Georgia tax on Social Security no matter how much you receive or what your other income is. You may still owe federal income tax on Social Security depending on your combined income.

Do I have to file a Georgia tax return if I only have Social Security income?

No. If Social Security is your only income, you have no Georgia tax filing requirement. However, if you also have pension or other income, you must file if that income exceeds the filing threshold for your age and filing status.

Can I avoid Georgia tax by taking my pension as a lump sum instead of monthly payments?

No. Georgia taxes the full amount of the lump sum in the year you receive it, regardless of how the pension is paid out. Taking it as monthly payments spreads the tax over multiple years, which may result in a lower overall tax rate, but does not eliminate the tax.

Is my 401(k) withdrawal taxed differently than my pension?

No. Georgia taxes 401(k) withdrawals, IRA distributions, and pension payments all the same way — as ordinary income at the standard state rates. The source of the retirement money does not matter; only the amount counts.

What if I moved to Georgia after I retired in another state?

Georgia taxes your pension income the same as it taxes pensions earned by Georgia residents. The state where you earned the pension does not matter. However, if you moved to Georgia and still have income from another state, check whether that state also taxes your pension, as some states have reciprocal agreements.