Military retirement pay in Georgia
Varies
Does Georgia Tax Military Retirement Pay?
Short answer: Partly. For 2026, retirees under age 62 can exclude $17,500 of military retirement pay, plus another $17,500 if they have more than $17,500 of Georgia earned income. At age 62 to 64 the general retirement exclusion is $35,000, rising to $65,000 at age 65 and older. HB 266 (2025) lets retirees under 65 exclude up to $65,000 of military retirement pay, but only from tax year 2027; it does not apply to 2026. Retirees can't claim both the military and general retirement exclusions in the same year. Each spouse qualifies separately. Other retirement income: Taxpayers 62–64 (or permanently disabled) may exclude up to $35,000, and those 65+ up to $65,000 per person of retirement income, including pensions, 401(k)/IRA withdrawals, and up to $5,000 of earned income.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Georgia
Varies
Individuals / Personal Taxes
Partly. For 2026, retirees under age 62 can exclude $17,500 of military retirement pay, plus another $17,500 if they have more than $17,500 of Georgia earned income. At age 62 to 64 the general retirement exclusion is $35,000, rising to $65,000 at age 65 and older. HB 266 (2025) lets retirees under 65 exclude up to $65,000 of military retirement pay, but only from tax year 2027; it does not apply to 2026. Retirees can't claim both the military and general retirement exclusions in the same year. Each spouse qualifies separately. Other retirement income: Taxpayers 62–64 (or permanently disabled) may exclude up to $35,000, and those 65+ up to $65,000 per person of retirement income, including pensions, 401(k)/IRA withdrawals, and up to $5,000 of earned income.
Business justification
Partly. For 2026, retirees under age 62 can exclude $17,500 of military retirement pay, plus another $17,500 if they have more than $17,500 of Georgia earned income. At age 62 to 64 the general retirement exclusion is $35,000, rising to $65,000 at age 65 and older. HB 266 (2025) lets retirees under 65 exclude up to $65,000 of military retirement pay, but only from tax year 2027; it does not apply to 2026. Retirees can't claim both the military and general retirement exclusions in the same year. Each spouse qualifies separately. Other retirement income: Taxpayers 62–64 (or permanently disabled) may exclude up to $35,000, and those 65+ up to $65,000 per person of retirement income, including pensions, 401(k)/IRA withdrawals, and up to $5,000 of earned income. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions