Military Retirement Income Tax Exemption
Up to $65,000 of military retirement pay exempt from Georgia state income tax for retirees under age 62 (takes effect tax year 2027 per HB 266).
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Apply directly through the official Georgia agency.
About this benefit
Eligibility
Receiving military retirement pay; Georgia resident filing state taxes. HB 266 (signed 2025) raises the exemption to $65,000 for ALL military retirees regardless of age, beginning with tax year 2026. For tax year 2025, the existing tiered structure still applies: under age 62 = up to $17,500 (plus an additional $17,500 with at least $17,500 earned income); ages 62-64 = $35,000; age 65+ = $65,000.
Covers
Up to $65,000 of military retirement pay exempt from Georgia state income tax for tax year 2026 onward. Estimated savings: up to approximately $3,374/year at Georgia's 5.19% flat rate.
How to apply
Claimed on Georgia state income tax return (Form 500).
Verified against official source
Last checked 2026-05-04 against veterans.georgia.gov. Always confirm current rates and rules with the Georgia state agency before applying.
Other Georgia Tax Benefits
Disabled Veteran Homestead Property Tax Exemption
Up to $126,526 exemption from property taxes on primary residence for 100% disabled veterans (2026 amount).
Up to $126,526 exemption ($1,500-$4,000+ annual savings)
Disabled Veteran Vehicle Ad Valorem Tax Exemption
Exemption from annual ad valorem property tax on one vehicle for 100% disabled veterans.
Several hundred dollars per year
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