Note: this post was originally written in 2015. For the latest ranking, click here.
Kiplinger recently reviewed tax policies for seniors and ranked Georgia #3 as one of the most tax-friendly states for retirees. Georgia was viewed favorably for excluding up to 65K per person of 130K per couple in retirement income, which basically covers any type of passive income. And active or “working” income is taxed on a scale of 1-6% according to Kiplinger. Additionally, there is no inheritance or estate tax in Georgia and sales tax state-wide is 4% with exclusions for food and prescription medicines, important to seniors.
Curiously, Kiplinger made no mention of the tax breaks for seniors in many Georgia counties. For instance, in Cobb and Cherokee Counties, retirees at age 62 pay no school taxes (okay, in Cherokee, you are exempt for the first $377,750). The school tax exemption saves you hundreds and more depending on the value of your home. While the savings in the aforementioned counties are among the most generous in Metro Atlanta, most counties offer at least some savings for retirees.
Here is the top ten list rated by Kiplinger (note Georgia is the top-ranked warm weather state): Alaska, Wyoming, Georgia, Arizona, Mississippi, Delaware, Nevada, Louisiana, South Carolina and Florida.