Georgia Governor Sonny Perdue signed House Bill 1055 into law on May 12, 2010. This bill gradually increases the exclusion amount of retirement income* for state income tax purposes for retirees age 65 or older.
Under prior law, taxpayers who were at least 62 years old or disabled were allowed to exclude up to $35,000 of retirement income from their taxable income. Under the new law, the retirement income exclusion for taxpayers who are age 65 or older increases in tax years 2012 through 2016 as follows:
- 2012 - $65,000 exclusion
- 2013 - $100,000 exclusion
- 2014 - $150,000 exclusion
- 2015 - $200,000 exclusion
- 2016 – Unlimited exclusion
The retirement exclusion for taxpayers who are age 62 to 64 will remain at $35,000.
* Retirement income includes interest, dividend, rent and royalty income, capital gains, pensions, annuities, other unearned income, and up to $4,000 of earned income.
