The Tennessee/North Georgia area is one of the most beautiful areas of the country. The landscape is absolutely gorgeous and the proximity to both Atlanta and Chattanooga give it the best of both worlds when it comes to shopping, health care and culture. Considering retirement to the Tennessee/Georgia area, but not sure which state to buy a home in? Tax information is something to think about. Retirement Tax benefits of Chattanooga/ North Georgia is information you should have.
Retirement Tax benefits of Chattanooga/ North Georgia
One of the top 10 states for tax friendliness, Georgia law creates a great environment for retirees. Social Security income is exempt, and so is up to $35,000 of most types of retirement income (your pension and investments, therefore are safe). When you reach 65 and older, the 2013 exemption is $65,000 per taxpayer. Income tax in the state is relatively, low ranging from 1-6% based on income. The statewide sales tax is 4% which is one of the lowest in the country. Full-time residents qualify for a homestead exemption, and residents 65 and older may qualify for additional deductions from property taxes. Georgia does not have an inheritance tax.
Tennessee is more of a mixed bag when it comes to retirement taxes. The state has no broad-based income tax, though the state does levy a 6% tax on stock dividends and interest income from bonds and other investments, however the first $1,250 ($2,500 joint) is exempt. Sales tax is one of the highest in the country coming in at 9.44% on average statewide. There’s no state income tax, so salaries, wages, Social Security benefits, IRA distributions and pension income are not taxed. Property tax in Tennessee is 25% of appraised value, and while Tennessee does not offer a homestead exemption, there is a tax relief benefit for citizens 65 and older. Legislation was recently passed to phase out inheritance tax by 2016, however, currently it ranges from 5.5% to 9.5% based on the value of the property.
As you can see, both states offer benefits to retiring in the area. Chattanooga Property Shop can help you find the perfect property in either state you decide is right for you.