Budget is at top of mind for most retirees. So how far can your money go in Georgia? Part of that depends on tax-friendliness.
“It is very important for individuals to do some pre-retirement homework on all the tax implications of retiring and moving to a new tax-friendly state,” Robert Westley, a senior wealth adviser at Northern Trust told USA Today. “Most individuals focus solely on the state income tax rate but there are other factors to consider such as sales tax, property taxes and even estate taxes.”
SmartAsset reported Georgia is very tax-friendly toward retirees.
“Georgia has big, culturally rich cities like Atlanta. It has charming colonial towns like Savannah. It has pristine beaches on the Atlantic Coast. It is even home to one of the world’s most famous golf courses, in Augusta. Georgia is also one of the most retirement tax-friendly states in America,” the website said.
There is no tax on Social Security retirement benefits. Anyone 65 and older is offered a maximum deduction of $65,000 per person on all types of retirement income. Sales taxes and property taxes are relatively moderate. The 4% sales tax puts Georgia in the bottom 20 of the country. Georgians pay below-average for property taxes. It’s around $870 per year in property taxes per $100,000 in home value. There are no inheritance or estate taxes.
Georgia has been put in the middle of the pack among the best and worst states for retirement on rankings.
RetirementLiving put the Peach State at No. 26 after evaluating it for cost of living, quality of life, healthcare and giving it a RetirementLiving Score.
Kiplinger once said Georgia was the No. 3 best state to retire.
“Warm weather and a low cost of living make Georgia just peachy for a happy retirement destination. Health care expenses are particularly affordable for retirees, with the sixth lowest average costs for a retired couple in the country. Plus, Georgia’s favorable tax situation makes it one of the 10 best states for taxes on retirees.”
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