How is Georgia for retirement?

If you want to retire in a southern state with warm weather and the irresistible southern charm, Georgia could be a good choice for you. The state ticks a lot of boxes that seniors consider when choosing a good state to retire, including diversity, rich culture, affordability, low crime, and friendly taxes. But, there is more you should know about retiring in Georgia.

Georgia is a relatively popular choice for retirees due to its friendly tax system and low cost of living. The state does not tax Social Security benefits, while other retirement incomes are partially taxed. If you are age 65 or older, you get a deduction of $65,000 on other retirement incomes; if you are age 62 to 64, you get a deduction of $35,000 on other retirement incomes.

Is Georgia tax-friendly for retirees?

Georgia is relatively tax-friendly to retirees. Social Security benefits are exempted from state income taxes, while other retirement incomes like pensions and retirement plan withdrawals are partially taxed.

The state allows seniors age 65 or older a $65,000 deduction on other retirement incomes. If your total retirement income (excluding Social Security) is below $65,000, you won’t pay any state income taxes on the money. If you are in the 62 to 64 age bracket, you are allowed a deduction of up to $35,000 on other retirement incomes. Retirement incomes above the allowed deductions are combined with other sources of income, and taxed at the state’s income tax rates.

You should also expect to pay sales taxes on goods and services purchased in Georgia. The statewide sales tax is 4%, while the local governments levy their own sales taxes, which can go up to 4.9%. Overall, the average state and local sales tax is 7.72%. The state does not exempt groceries from sales taxes, as is common with other states; however, only the local sales taxes apply to groceries.

Are property taxes high in Georgia?

Georgia has relatively low property taxes, below the national average. The state has an average effective property tax rate of 0.83%. The state employs ad-valorem tax, where property taxes are determined based on the assessed home value, resulting in variations in property tax amounts. On average, homeowners in Georgia pay about $2,027 in property taxes per $100,000 in property value.

The Georgia Homestead exemption provides relief to senior homeowners who occupy their homes as their primary residence. The state exempts the first $2,000 from the 40% assessed property value from property taxes. If you are 65 or older, you may be eligible for a double homestead exemption. In this case, to qualify for the exemption, your household income, excluding Social Security and pension income, should not exceed $10,000 annually.

Pros of retiring in Georgia

Low cost of living

Georgia has a modest cost of living, partly due to the favorable tax climate. The tax exemptions and low cost of housing help retirees stretch the dollar further, even on a fixed income. If you are considering downsizing as part of your retirement goals, you will find plenty of affordable housing options in Georgia’s metropolitan areas as well as in smaller towns.

Mild climate

Much like its southern neighbor, Florida, Georgia has a warm climate. The summers tend to be warm, and winters are mild and short, and you can leave your snow shovel behind when heading to Georgia. The good climate, coupled with the miles of Atlantic Ocean coastline and picturesque surroundings, allows retirees to explore outdoor recreation activities year-round.

Welcoming Southern hospitality

Georgia is known for its welcoming southern hospitality, and the locals are known to be friendly to visitors. The warm hospitality makes it easy for retirees to build lasting friendships with locals and integrate into the local communities. If you plan to move into the retirement communities in Georgia, you can easily get a sense of belonging, and find people who share the same interests.

Outdoor recreation

Georgia is a little paradise on earth, and you can find plenty of outdoor opportunities. Retirees can go fishing in the lakes, hike in the beautiful mountains, visit the state parks, or take leisure walks along the coastline. The state also boasts a rich golfing culture, and there are many world-class gold courses spread across the state. Additionally, the state has diverse and scenic landscapes that provide retirees with plenty of opportunities for outdoor recreation and exploration.

Rich history

With its rich history and culture, Georgia offers retirees an opportunity to delve into its rich history and explore the local cultural experiences, including music, art galleries, and festivals. You can also have a taste of the mouthwatering traditional cuisines that the Peach State is known for.

Cons of retiring in Georgia

Hot and humid summers

While the state generally has a mild climate, the summers can get hot and humid, especially in the southern parts of the state. The temperatures can also go over 100 degrees Fahrenheit, which can be too much to handle for someone who is used to the warm weather.

Mosquitos and bugs

If you hate mosquitos, bugs, and pests, you may not like it in Georgia. The state attracts lots of bugs and mosquitos in the summer, spring, and fall months, which can be a nuisance to the residents. Small pests including ants, fleas, gnats, ticks, and cockroaches can be a menace, and you should invest in repellants and insect screens. 

Traffic congestion

Bigger cities like Atlanta and Savannah are often plagued by traffic jams during the morning and evening rush. It is not uncommon to find the main highways jam-packed with cars, or motorists getting stuck in traffic for more than an hour.

Limited public transportation

While the big cities have bus lines, subway systems, and other forms of public transport, the small cities and rural areas of Georgia have limited public transportation, and it can be tough to get around without a car. You will have to use private transport to travel outside the metropolitan areas most of the time.

Fewer public beaches

Georgia has access to the Atlantic Ocean, but the coastline is only 100 miles long. This means there are few public beaches, which are often crowded. If you prefer less-crowded beaches, you can go during the low season when there are fewer tourists, or pay to visit the private beaches.

Best places to retire in Georgia

Here are the best cities to retire in Georgia:

Augusta

Augusta city started as a trading post in the early 1700s during British colonial times, and it was involved in the Civil and Revolutionary Wars. The city also hosts the World's most prestigious golf course- The Masters, and it also hosts the annual Augusta Masters golf tournament. Additionally, this city has all the features of a Metropolis, including shopping malls, cafes, museums, art galleries, etc.

Marietta

Marietta is a city in the Atlanta Metropolitan area, and it is a good place to retire for history buffs. It is known for its good schools, safe neighborhoods, affordability, and proximity to downtown Atlanta. You can find many shopping centers, restaurants, cafes, and places that families can visit for adventure.

St Simons

Located along Georgia’s coastline, St. Simons Island provides a relaxed setting for retirement. The city is home to beautiful beaches and golf courses, and seniors can find tight-knit communities in the area. You can also find some of the most exclusive resorts, art galleries, shopping centers, and restaurants in the downtown area.

Athens

Athens is located one hour from Atlanta, on the hills of Northeastern Georgia. The city is a perfect place for seniors who want to balance affordability and outdoor activities. It is home to the University of Georgia, which has created a music, arts, and liberal community, and it brings a vibrant college-town experience into the city.

Savannah

Savannah is packed with history and culture, and it offers retirees a laid-back lifestyle and a rich cultural heritage. It is a popular choice for retirees due to its mild climate, historic charm, riverfront views, and cultural activities. There are plenty of annual events in the city, where you can get a feel of the city’s rich cultural heritage, warm hospitality, and delicious cuisine.