Side-by-side for American retirees in 2026.
Florida's biggest rival for the snowbird crowd. Dry desert climate, lower humidity than the Southeast, a flat 2.5% income tax, and Social Security fully exempt.
One of the most generous states for retirees — up to $130K per couple of retirement income excluded from state tax. Mild climate, mountains, and Atlanta as a hub.
| Flat 2.5% | Income tax | Flat 5.29% |
| Exempt | Social Security | Exempt |
| Flat 2.5% on most retirement income; Social Security fully exempt | Pension treatment | $65K/person retirement exclusion at 65+ — among the most generous in the US |
| 0.51% | Property tax (effective) | 0.81% |
| 8.40% | Avg combined sales tax | 7.40% |
| 102.5 | Cost of living (US=100) | 90.8 |
| None | Estate / inheritance tax | None |
| Hot dry summers (100°F+ in Phoenix), mild winters. Flagstaff and Prescott offer cooler mountain climates year-round. | Climate | Hot humid summers, mild winters in southern half; cooler in northern mountains. Long growing season. |
| Excellent — Mayo Clinic Scottsdale, Banner Health, HonorHealth. Tucson has top geriatric care. | Healthcare | Strong — Emory Healthcare (Atlanta), Piedmont Healthcare. Solid coverage in mid-sized cities. |
| Scottsdale, Tucson, Prescott | Top retirement cities | Athens, Savannah, Blue Ridge |
Senior property tax freeze available age 65+ with income under ~$45K (varies by county)
Standard $2,000 homestead + larger exemptions for 65+ in many counties; double for 65+ with income under ~$10K
Arizona: Florida's biggest rival for the snowbird crowd. Dry desert climate, lower humidity than the Southeast, a flat 2.5% income tax, and Social Security fully exempt. Georgia: One of the most generous states for retirees — up to $130K per couple of retirement income excluded from state tax. Mild climate, mountains, and Atlanta as a hub. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Arizona does not tax Social Security retirement benefits.
No, Georgia does not tax Social Security retirement benefits.
Arizona's cost of living index is 102.5 (US = 100). Georgia's is 90.8. Georgia is cheaper on average.
Enter your retirement income and see the after-tax difference between Arizona and Georgia in 30 seconds.
Open tax estimator →Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.