2023 – 2024 Senior Citizen State of Georgia and Federal Tax Deductions
For senior citizens, you may be able to claim various tax deductions on both your State of Georgia and Federal Tax Filings. For those filing their taxes, looking at the overall tax snapshot of your state and federal taxes is essential for perspective. To ensure you’re getting the most out of your money, begin by looking at your income taxes and state and sales tax rates, then progress to social security, retirement accounts, property, additional exemptions, deductions, and refunds. You may be eligible for credits that earn you a larger refund.
Georgia Has Zero Social Security Tax
Georgia is one of the many states that does not impose a tax on social security benefits. Taxable Social Security and Railroad Retirement on your Federal tax return are exempt from Georgia Income Tax. The state provides a maximum retirement income deduction of $65,000 per person.
Source: Georgia Department of Revenue
Retirement Income Exclusion
Taxpayers who are 62 or older may be eligible for a retirement income adjustment on their Georgia tax return. For married couples filing joint returns with both members receiving retirement income, each spouse must qualify separately. For those who are part-time residents and non-residents, you are allowed to prorate the retirement exclusion. For taxpayers whose income exceeds the maximum adjustable amount, they will be taxed at the normal rate. Retirement income includes:
- Up to $4,000 of earned income
- Interest income
- Income from pensions and annuities
- Dividend income
- Net income from rental property
- Capital gains income
- Income from royalties
Source: Georgia Department of Revenue – Retirement Income Exclusion
Georgia Property Tax Advantages, Benefits, Deductions, and Exemptions for Seniors 65 and Older
Homestead Exemption
Generally, a homeowner is entitled to a homestead exemption on their home and land underneath provided the home was owned by the homeowner and was their legal residence as of January 1 of the taxable year. While in some counties, they have increased the amount of their homestead exemptions by local legislation. The standard state homestead exemption is $2,000, while for individuals 65 years of age or over may claim a $4,000 exemption from all county ad valorem taxes. Individuals are eligible if the income of that person and his spouse does not exceed $10,000 for the prior year. For more details on the Homestead Exemption, click here.
Additional Exemption for Educational Purposes
Those who are 62 Years of Age and Older and who are residents of each independent school district/each county school district may claim an additional exemption.Those who receive this are exempt from ad valorem taxes for educational purposes and to retire school bond indebtedness if the income of that person and his spouse does not exceed $10,000 for the prior year. For more details on the additional exemption for educational purposes, click here.
To learn more about additional exemptions for Disabled, Veterans, and Surviving Spouses, visit the Georgia Department of Revenue here.
Zero Property Tax in Active Adult Community Living and Senior Retirement Communities
For those 55+ years of age and above, living in an active adult and senior retirement community is an excellent option. Depending on the home agreement or contract, residents may be able to pay zero property tax on that residence. In addition to zero property tax, some seniors will find that living in a retirement community is cheaper after comparing monthly expenditures (home payment, home maintenance and repairs, lawn maintenance, dining/groceries, electricity, water, transportation, internet, etc.).
Top-Rated Senior Living in Georgia
One of the top-rated communities in the state is Marsh’s Edge, a Continuing Care Retirement Community (CCRC) located on St. Simons Island in Eastern Georgia. As a CCRC, Marsh’s Edge proudly offers a full continuum of care including 55+ active adult living, independent living, assisted living, memory care, skilled nursing, senior rehabilitation, and respite care. The benefit of living in a community like Marsh’s Edge is that should your needs change, there is no need to relocate as you’ll be at home in a community of friends and have easy access to the care you require in your own home. To learn more about Marsh’s Edge, click here.
Georgia State Income Tax Rate 2023
The State of Georgia does not have a standard income tax deduction. Rates are based on a sliding scale bracket, and the rates range from as low as 1% to 5.75% based on income (2023 Income Tax Rates).
- 1% – For individuals whose income is between $0 – $750 or those who are married filing jointly whose income is between $0-$1,000.
- 5.75% – For individuals whose income is $7,001 or more, and those who are married filing jointly whose income is $10,001 or more.
Source: Georgia Income Tax: Rates, Who Pays in 2023-2024, Georgia Department of Revenue – Income Tax Tables
Georgia State and Local Sales Tax Rate 2022
Georgia has a state sales tax of 4% and allows local governments to collect local sales tax. The average local sales tax rate is 3.73%, for a combined state and local average rate of 7.731%. The state sales tax applies on sales and purchases of items, services, and transient rentals.
Source: Georgia: Sales Tax Handbook
State of Georgia and Federal Tax Resources:
State of Georgia Official WebsiteGeorgia Department of Revenue
State of Georgia – Department of Driver Services
United States Internal Revenue Service (IRS)
United States Department of the Treasury
Federal Tax Deductions for Seniors
For those who are 65 and older, in addition to state and local tax deductions there are federal tax deductions and exclusions that may apply to your yearly tax filing. Some of the top deductions are listed below:
What is the Standard Federal Tax Deduction for Seniors Over 65?
The standard tax deduction is a set dollar amount that reduces your overall taxable income. This can vary based on your filing status, age, whether you are blind, or if another taxpayer can claim you as a dependent. Below you will find information for the standard deduction plus an increased deduction for seniors over the age of 65.
2023 Senior Citizen-Standard Income Tax Deduction
In the 2023 tax year (filed in 2024), the standard deduction is $13,850 for Single filers and Married Filing Separately, $27,700 for Married Filing Jointly and Surviving Spouses, and $20,800 for the Head of Household.
For those 65 years of age or legally blind, the standard deduction was increased in 2023 to $1,850 for Single filers or Head of Household, and $1,500 (per person) for married filing jointly, married filing separately, and Surviving Spouses.
2023 Standard Tax Deduction for Seniors Over 65 Years of Age with the Standard Deduction Increase*:
| Filing Status | 2023 Standard Deduction Under 65 Years of Age | 2023 Additional Standard Deduction Over 65 Years of Age | 2023 Total Standard Deduction Over 65 Years of Age* |
| Single (Unmarried and not a Surviving Spouse) | $13,850 | $1,850 | = $15,700 |
| Married Filing Separately | $13,850 | $1,500 | = $15,350 |
| Married Filing Jointly | $27,700 | $1,500 + $1,500 (One deduction for each spouse) | = $30,700 |
| Surviving Spouses | $27,700 | $1,500 + $1,500 | = $30,700 |
| Head of Household | $20,800 | $1,850 | = $22,650 |
* If you are legally blind, there are additional deductions that apply. Check IRS Form 1040 or 1040A and speak with your licensed tax professional to learn more.
To check your 2023 Standard Deduction, visit the Interactive Tax Assistant (ITA) at IRS.gov
2024 Senior Citizen Standard Income Tax Deduction
In the 2024 tax year (filed in 2025), the standard deduction is $14,600 for Single Filers and Married Filing Separately, $29,200 for Married Filing Jointly and Surviving Spouses, and $21,900 for the Head of Household.
For those 65 years of age or legally blind, the standard deduction was increased in 2024 to $1,950 for Single filers or Head of Household, and $1,550 for Married Filing Jointly, Married Filing Separately, and Surviving Spouses.
2024 Standard Tax Deduction for Seniors Over 65 Years of Age with the Standard Deduction Increase*:
| Filing Status | 2024 Standard Deduction Under 65 Years of Age | 2024 Additional Standard Deduction Over 65 Years of Age | 2024 Total Standard Deduction Over 65 Years of Age* |
| Single (Unmarried and not a Surviving Spouse) | $14,600 | $1,950 | = $16,550 |
| Married Filing Separately | $14,600 | $1,550 | = $16,150 |
| Married Filing Jointly | $29,200 | $1,550 + $1,550 (One deduction for each spouse) | = $32,300 |
| Surviving Spouses | $29,200 | $1,550 + $1,550 | = $32,300 |
| Head of Household | $21,900 | $1,950 | = $23,850 |
* If you are legally blind, there are additional deductions that apply. Check IRS Form 1040 or 1040A and speak with your licensed tax professional to learn more.
Each situation is different, but if the standard deduction is less than your itemized deductions, it’s better to itemize and save money. If your standard deduction is more than your itemized deductions, it’s better to opt for the standard deduction. Speak with your licensed tax professional to determine which deduction is correct for you.
Medical and Dental Federal Tax Deductions
For retirees, medical, healthcare, and dental expenses are often one of the largest expenses. According to IRS.gov, if you itemize your deductions for a taxable year on Schedule A (Form 1040 – Itemized Deductions), you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. You figure out the amount you’re allowed to deduct on Schedule A (Form 1040). Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body. These deductions include prescription drugs, nursing home care, long-term care insurance premiums, insurance premiums (including Medicare), and additional out-of-pocket healthcare expenses. For a full list of acceptable tax deductions, visit IRS.gov’s Medical and Dental Expenses here.
Is Assisted Living Tax Deductible?
For those who are in an assisted living retirement community, there may be medical tax deductions that are associated with the care that is received during that tax year.
Residents of assisted living may be entitled to deduct as a medical expense a portion of the monthly service fees and entrance fees which represent medical care in the year paid. The Internal Revenue Code (IRS) does not contain detailed guidance on how to compute this, therefore each resident should consult their licensed tax professional as to the ultimate deduction and disclosure decisions based on their individual situation.
Monthly service fees paid for assisted living and skilled nursing care may be deducted as medical expenses except for those charges for non-medical items such as beauty shop charges or guest meals. This treatment is allowable provided that residents require the services, are chronically ill and the services are provided under a plan of care prescribed by a licensed health care practitioner (IRC Section 7702B(c)).
A resident must meet certain criteria to be eligible for a 100% medical deduction for monthly services fees paid. The resident must be unable to perform, without substantial assistance from another individual, at least two activities of daily living for a period of at least 90 days, or the resident requires substantial supervision to protect their health and safety due to severe cognitive impairment. Activities of daily living include eating, toileting, transferring, bathing, dressing, and continence. The services must also be provided pursuant to a plan of care prescribed by a licensed health care practitioner.
For a full list of acceptable tax deductions, visit IRS.gov’s Medical and Dental Expenses here.
Federal Tax Resources:
United States Internal Revenue Service (IRS)United States Department of the Treasury
IRS Standard Deduction Calculator
IRS Medical and Dental Expenses
Disclaimer: The information above should function as a starting point for your tax research but should not be substituted for direct advice from a licensed tax professional. State and Federal taxes are ever-changing and this list may not be current or up to date with the current tax laws, deductions, relief programs, rebates, requirements, etc. Additional tax deductions, credits, and relief programs may be available depending on your town and county of residence within the State of Georgia. Check with your local municipality’s tax department, the Georgia Department of Revenue, the U.S. Internal Revenue Service (IRS) and your licensed tax professional to learn more about programs that are available for the current tax year.
