Side-by-side for American retirees in 2026.
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.
No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations.
| Flat 5.29% | Income tax | No state income tax |
| Exempt | Social Security | Exempt |
| $65K/person retirement exclusion at 65+ — among the most generous in the US | Pension treatment | All retirement income state-tax-free |
| 0.81% | Property tax (effective) | 0.67% |
| 7.40% | Avg combined sales tax | 9.55% |
| 90.8 | Cost of living (US=100) | 90.3 |
| None | Estate / inheritance tax | None |
| Hot humid summers, mild winters in southern half; cooler in northern mountains. Long growing season. | Climate | Four distinct seasons. Warm humid summers, mild winters with occasional snow. East Tennessee mountains cooler year-round. |
| Strong — Emory Healthcare (Atlanta), Piedmont Healthcare. Solid coverage in mid-sized cities. | Healthcare | Strong — Vanderbilt (Nashville), University of Tennessee Medical Center. Limited in rural areas. |
| Athens, Savannah, Blue Ridge | Top retirement cities | Knoxville, Chattanooga, Crossville |
Standard $2,000 homestead + larger exemptions for 65+ in many counties; double for 65+ with income under ~$10K
Property tax freeze available for 65+ with income under ~$33K (varies by county); tax relief programs available
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. Tennessee: No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Georgia does not tax Social Security retirement benefits.
No, Tennessee does not tax Social Security retirement benefits.
Georgia's cost of living index is 90.8 (US = 100). Tennessee's is 90.3. Tennessee is cheaper on average.
Enter your retirement income and see the after-tax difference between Georgia and Tennessee 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.