As of 2021, Kiplinger announced that Georgia is among the most tax-friendly states for retirees in the country, so it might be time to take a drive down south and see what all the peach state has to offer.
In addition to our fabulous Southern location, Kiplinger discovered the state offers wonderful tax advantages for seniors. Georgia is ranked with other tax-friendly state such as South Carolina, Tennessee, Alabama and Colorado due to its low-tax climate, tax exemptions, tax breaks and affordable housing market.
In Georgia, Social Security income and benefits are tax exempt. Additionally, up to $65,000 of most types of retirement income are also exempt, including pension, annuities, rental income, interest, dividends and capital gains. While this only applies to residents 65 and older, the state’s tax exemption policies help retirees of different socio-economic levels gain a secure foothold into the next chapter of their lives.
The state’s 4% sales tax is also low in comparison to Florida’s 6% state tax and Kansas’ 6.5% state tax. This is super important because localities in every state can charge varying percentages which results in a higher state average. Georgia’s average sales tax is around 7.32% which still ranks comparatively low. So, there are many goods either tax-exempt or taxable that residents must keep in mind
According to the Department of Revenue, qualifying full-time residents ages 65 and older are able to receive homestead exemptions for additional property tax deductions. The exemption is provided to homeowners who owned their home as of January 1 of the taxable year and who occupy the residence.
There are many more residential tax exemptions available. Homeowners who are 62 or older that earn $10,000 or less than up to $10,000 of their property’s assessed value are exempt from school taxes. In addition, family incomes that do not exceed $30,000 may qualify for an exemption equal to the amount by which the assessed home value exceeds the assessed value for the preceding tax year.
Reprinted from Atlanta Real Estate Forum.com Jamison Guice June 13, 2021
Since Georgia is a tax friendly state for retirees learn about Active Adult communities in North Metro Atlanta now. There are wide varieties of locations, sizes, styles, and amenities to choose from.