Tuesday, December 1, 2015

Georgia rated 5th tax friendliest state for seniors

Kiplinger has ranked Georgia as one of the top five states for senior taxpayers. Kiplinger reviewed the overall tax climate in the states to determine the ranking. A major factor behind the ranking was Georgia's income tax exemption for retirement income.  Here’s their summary for Georgia:
State Income Tax: 1% (on income up to $750/individual, $1,000/joint) - 6% (on income over $7,000 individual, $10,000/joint)
State Sales Tax: 4%
Estate Tax/Inheritance Tax: No/No
Ever wonder why so many retirees have Georgia on their minds? The Peach State's low tax climate may have something to do with it. Social Security income is exempt from state taxes, and so is as much as $35,000 of most types of retirement income for people ages 62 to 64. For those 65 and older, the exemption is $65,000 per taxpayer, or $130,000 per couple. Retirement income includes interest, dividends, net income from rental property, capital gains, royalties, pensions, annuities and the first $4,000 of earned income, such as wages.
The statewide sales tax is 4%, but jurisdictions may add up to 4% of their own taxes. The average combined state and local sales tax rate is 6.96%, according to the Tax Foundation. Food and prescription drugs are exempt.
The median property tax on the state's median home value of $141,600 is $1,352. Full-time residents qualify for a homestead exemption, and seniors may qualify for additional deductions from property taxes. 
For the other listings, check out Kiplinger’s slide show here.

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