Active-duty pay
Taxed
Active-duty pay taxable; combat zone exempt.
State Guide · GA
Georgia — Military Tax Treatment
Georgia expanded its retirement income exclusion to $65K for all ages starting 2026 — that covers most 20-year military retirements. Active duty and Guard drill pay are still fully taxable.
2026 update
GA expanded retirement income exclusion for all ages beginning 2026 tax year — up to $65,000.
Tax treatment at a glance
Guard & Reserve drill pay
Taxed
Guard and Reserve drill pay is taxable Georgia income. SCRA protections apply during federal activation but not routine drill.
Military retirement pay
Partially Exempt
Retirees of any age may exclude up to $65,000 (effective 2026 tax year).
The numbers · verified for tax year 2025
Top marginal rate
5.19%
Retirement-pay exemption
Up to $17,500 · age 62+
For tax year 2025, military retirees under age 62 may exclude up to $17,500 of military retirement income (plus another $17,500 if they have at least $17,500 of Georgia earned income); ages 62–64 use the general retirement exclusion up to $35,000, and age 65+ up to $65,000. A new age-blind $65,000 military-retirement exemption takes effect in tax year 2026.
Standard deduction
For 2025 the standard deduction is $12,000 single / $24,000 married filing jointly (rising to $15,000 / $30,000 in 2026). Georgia moved to a flat tax; the 5.19% rate is retroactive to Jan 1, 2025 under HB 111.
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — Georgia included.
Survivor Benefit Plan (SBP)
Follows retirement
SBP annuities are likely included within the $65K retirement income exclusion — the cap is shared across all retirement income sources.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in Georgia, Georgia cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to Georgia can keep Texas as their tax domicile and avoid Georgia state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether Georgia exempts that pay is the state-specific question answered above.
Filing watch-outs
- 01The $65K exclusion is shared across all retirement income — other pension income reduces the available cap
- 02Use GA Form 500 with the retirement income exclusion schedule
Veteran-specific tax benefits
Disabled veteran homestead exemption.
Official authority
https://dor.georgia.gov/ ↗State tax law changes annually. Verify current rules with the Georgia Department of Revenue before making any tax decision.
Georgia military tax — common questions
Does Georgia tax military retirement pay in 2026?
Georgia partially taxes military retirement pay. Retirees of any age may exclude up to $65,000 (effective 2026 tax year).
Does Georgia tax active-duty military pay?
Georgia taxes active-duty military pay for state residents. Active-duty pay taxable; combat zone exempt. Under the SCRA, Georgia can only tax the military pay of service members who are legally domiciled in Georgia — not those merely stationed there.
Does Georgia tax National Guard and Reserve drill pay?
Georgia taxes Guard and Reserve drill pay. Guard and Reserve drill pay is taxable Georgia income. SCRA protections apply during federal activation but not routine drill.
Is VA disability compensation taxed in Georgia?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including Georgia — taxes it as income.
If I'm stationed in Georgia but claim another state, can Georgia tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, Georgia cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
What changed for military taxes in Georgia for 2026?
GA expanded retirement income exclusion for all ages beginning 2026 tax year — up to $65,000.
Related tools
Other state guides