In May 2010, new legislation was passed that will phase out Georgia personal income taxation of retirement income.
For Georgia income tax purposes, beginning with the 2012 tax year, taxpayers who are age 62 but less than age 65 during any part of the taxable year, or permanently and totally disabled, can exclude up to $35,000 per year for each taxpayer.
Taxpayers 65 or older during any part of the taxable year can exclude up to $65,000 for the tax year beginning in 2012 increasing to $100,000 for 2013,
$150,000 for 2014, $200,000 for 2015. Then, in the 2016 tax year, taxation on retirement income for Georgia income tax purposes is completely eliminated for taxpayers age 65 or older during any part of the taxable year.
Retirement income includes interest income, dividend income, net income from rental property, capital gains income, income from royalties, income from pensions and annuities, and no more than $4,000 of an individual’s earned income.
This will be good news for Big Canoe residents who make Georgia their primary residence.