A Retiree’s Guide
Retiring in Georgia vs. Florida & Tennessee
An honest, numbers-based look at where retirees keep more of their money — and why the right answer isn’t always the state with no income tax.
Information in this guide is for general education. Specific tax outcomes depend on your personal situation — always consult a CPA or tax professional before making a relocation decision.
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🔍 The Short Answer
Most retirees assume Florida or Tennessee must be cheaper because they have no state income tax. For people still working at high incomes, that’s often true. But for retirees living on Social Security, a pension, and IRA/401(k) withdrawals, the math changes dramatically:
- Georgia doesn’t tax Social Security at all — same as Florida and Tennessee.
- Georgia excludes up to $65,000 per person ($130,000 per couple) in retirement income once you turn 65. Most middle-income retirees owe Georgia $0 in state income tax.
- Florida’s homeowners insurance is the highest in America (averaging ~$7,100/year) — often eating up the entire “no-income-tax” savings.
- Tennessee has the highest sales tax in the country at a combined 9.61% average.
- Georgia offers county-level senior property-tax breaks — Cherokee, Cobb, Fulton, Forsyth, Gwinnett and others can wipe out 40–60% of your property tax bill after age 62–65.
For many retirees, Georgia ends up being the most affordable choice overall — and the lifestyle (mountains, mild seasons, lower insurance risk) often tips the scale.
📊 Side-by-Side Comparison
The core retirement tax categories across all three states. All figures are statewide averages — your county may differ.
Sources: GA DOR, FL DOR, TN Comptroller, Tax Foundation, AARP State Tax Guides, Bankrate (2025–2026 data)
💰 Income Tax & Social Security
This is where people get tripped up. The headline “no income tax” states look better on paper — but for most retirees, Georgia’s income tax effectively disappears because of two powerful provisions.
Provision #1
Social Security: Fully Untaxed
Georgia joins Florida and Tennessee in taxing $0 of your Social Security benefits — at any income level. If you and your spouse each receive $30,000 in SS annually, that $60,000 is state-tax-free.
Provision #2
The Retirement Income Exclusion
Georgia excludes $35,000/person at ages 62–64 and $65,000/person at 65+ from state income tax. This applies to pensions, IRA/401(k) withdrawals, annuities, rental income and more. A couple over 65 can exclude $130,000 in retirement income per year.
What it means in plain English
A married couple age 65+ receiving $60,000 in Social Security + $100,000 in pension/IRA income would owe Georgia $0 in state income tax — because SS is fully excluded and the $100K of retirement income fits entirely under the $130K couple exclusion. Same as Florida. Same as Tennessee.
🏠 Property Tax: The Real Numbers
On property tax alone, Tennessee wins, Florida is close behind, and Georgia is in third. But county-level senior exemptions can completely reverse that ranking — more on that in the next section.
Georgia
0.94%
On a $400,000 home: ~$3,760/yr before senior exemptions. Strong county-level senior breaks frequently bring this down 40–60%.
Florida
0.78%
On a $400,000 home: ~$3,120/yr. Save Our Homes cap limits annual assessment increases to 3% — a valuable benefit for long-term residents.
Tennessee
0.52%
On a $400,000 home: ~$2,080/yr — the lowest of the three. Seniors 65+ can “freeze” their property tax in many counties if income limits are met.
🏥 Georgia’s Hidden Advantage: Senior Property Tax Exemptions
This is where Georgia quietly beats Florida and Tennessee for many retirees. Individual Georgia counties offer senior exemptions that can eliminate the school-tax portion of your property tax bill — and school tax typically represents 50–65% of the total bill.
For example, here’s what a few popular retirement-destination counties offer (current rules — verify with the county before buying, as exemptions are reviewed regularly):
Cherokee County
Canton, Woodstock, Ball Ground
Partial school-tax exemption at age 62, potential 100% school-tax exemption at age 65+ (requires 5 years of Cherokee County residency per SB 388). If you’re over 60 and planning the move, this residency rule matters — talk to me early.
Cobb County
Marietta, Kennesaw, Acworth
Full school-tax exemption at age 62 with no income limit — one of the most generous in the state. This alone can save retirees $2,000–$5,000/year on a typical home.
Fulton County
Alpharetta, Roswell, Milton
$54,000+ basic senior exemption at 65+, with additional county-specific breaks. Fulton’s high home values mean the absolute-dollar savings here are substantial.
Forsyth County
Cumming, South Forsyth
Full school-tax exemption at age 65 regardless of income — extremely generous given Forsyth’s strong home values. A top pick for affluent retirees.
Gwinnett County
Lawrenceville, Suwanee, Duluth
L5A full school-tax exemption at age 65 with income-based qualification. Lower home values compared to Fulton/Forsyth mean broader-access tax relief for retirees of all means.
Pickens County
Jasper, Big Canoe — where I live
North-Georgia mountain living with moderate property values and solid senior exemptions at 62 and 65. Combine that with the lifestyle and low cost of living — this is why I moved my family here.
⚠️ Important timing note
Some counties (like Cherokee) now require 5+ years of county residency before you qualify for the full senior school-tax exemption. If you’re 60+ and considering a move, the county you pick and when you move can materially change your tax picture. This is one of the top reasons to plan the move with someone who knows Georgia intimately — getting it right can be worth tens of thousands over your retirement.
🌞 Homeowners Insurance: The Hidden Florida Tax
This is the line item that most retirement comparisons skip — and it’s the one that quietly makes or breaks the Florida decision. Florida has the highest homeowners insurance in the United States, driven by hurricane risk and litigation costs.
Georgia
~$2,300/yr
Moderate. Near the national average.
Florida
~$7,100/yr
~$4,800/yr more than Georgia. That’s the real tax.
Tennessee
~$2,000/yr
Low. Tornado exposure is real but premiums remain reasonable.
Average annual premiums for $300,000 in dwelling coverage. Florida figures reflect 2025 market rates and can spike further in coastal counties. Some Florida retirees report premiums of $12,000+ on inland $400K homes.
💵 Real Scenario: A Retired Couple, Age 67
To cut through the theory, here’s how the math actually plays out. Meet John & Susan, both 67, retiring from California. They’re buying a $400,000 home, receiving $60,000/year in combined Social Security and drawing $80,000/year from a pension and IRA.
The Bottom Line
For this typical retired couple, Georgia costs roughly $5,500/year less than Florida and is almost identical to Tennessee — even though Georgia is the only one with a state income tax. That’s $55,000+ saved over a 10-year retirement, plus the benefit of milder weather and no hurricane risk.
Scenario assumes 5-year Cherokee residency for full school-tax exemption; Florida inland county with standard + senior homestead; Tennessee Davidson County without tax-freeze qualification. Your actual numbers will vary — always verify with a CPA.
⚖️ When Each State Wins
None of these states is wrong — they’re just right for different retirees. Here’s how I coach clients through the decision.
🌞 Georgia wins if…
- You want four mild seasons and mountains, not just beaches.
- Your retirement income is under $130K/couple (the exclusion covers you).
- You want to avoid hurricane-zone insurance premiums.
- You’re willing to shop Georgia counties for the best senior exemption.
- You value lower sales tax and moderate cost of living.
🌞 Florida wins if…
- You want beach/warm-weather year-round and are willing to pay for it.
- Your retirement income is very high (above $200K+/couple).
- You can self-insure or accept the hurricane-insurance cost.
- You’re buying inland and away from high-risk coastal zones.
- Social/community pull of Florida retirement areas is important to you.
🌞 Tennessee wins if…
- You spend relatively little (high sales tax punishes big spenders).
- You want the absolute lowest property tax in the region.
- You meet the income limits for the senior property-tax freeze.
- You’re drawn to the East Tennessee mountains or Nashville area.
- You prefer no state income tax and don’t care about the tradeoffs.
Let’s Talk About Your Numbers
Every retiree’s situation is different. I’ll sit down with you, your income picture, and your dream location — and walk through which Georgia county gives you the best tax outcome for your specific setup.
In the mortgage and real estate business since 2004. Licensed in Georgia and California. Moved my own family from CA to GA in 2020.