Georgia Veteran Benefits 2025: Property Tax, Income Tax & Financial Guide
Complete guide to Georgia veteran tax benefits: property tax exemptions, income tax treatment, financial benefits, and money-saving strategies for disabled veterans.
Georgia Veteran Benefits 2025: Property Tax, Income Tax & Financial Guide
Georgia offers solid tax benefits for veterans, though not as generous as neighboring Alabama or Florida. If you're considering Georgia or already living here, understanding these benefits can save you thousands annually - and major improvements are coming in 2026.
Bottom Line Up Front
Here's what Georgia offers veterans:
- Military retirement pay (2025): Partial exemption - $35K ages 62-64, $65K ages 65+
- Military retirement pay (2026 and beyond): $65K exempt for ALL ages (new law)
- Property tax exemption: Up to $121,812 assessed value for 100% disabled veterans
- VA disability pay: Completely tax-free (federal and state)
- Vehicle registration: One vehicle exempt from ad valorem tax for 100% disabled veterans
- State hiring preference: 5-10 point preference for state jobs
Potential annual savings for a 100% disabled veteran: $2,000-$4,500+ depending on property value and location.
Income Tax Treatment for Veterans
Military Retirement Pay - Partial Exemption (Improving in 2026)
Georgia's treatment of military retirement has historically been less favorable than neighboring states, but that's changing.
Current law (2025 tax year):
- Under age 62: Up to $17,500 exempt (with additional $17,500 if you have earned income)
- Ages 62-64: Up to $35,000 exempt
- Age 65+: Up to $65,000 exempt
NEW LAW (2026 tax year and beyond):
On May 13, 2025, Governor Brian Kemp signed legislation exempting up to $65,000 in military retirement pay from Georgia state tax regardless of age. This takes effect for the 2026 tax year (taxes filed in 2027).
What this means:
- Retire at age 42 with $40,000/year pension? Starting in 2026, all $40,000 is exempt
- Retire at age 50 with $55,000/year pension? Starting in 2026, all $55,000 is exempt
- Retire with $70,000/year pension? Starting in 2026, $65,000 is exempt (only $5,000 taxable)
This puts Georgia much closer to states like Alabama that fully exempt military retirement, though it doesn't reach full exemption for higher-income retirees.
VA Disability Compensation - Tax-Free
All VA disability compensation is exempt from federal and state taxation. Whether you receive $165/month for a 10% rating or $3,800+/month for 100% with dependents, you won't pay taxes on it.
Survivor Benefit Program (SBP)
SBP payments received by surviving spouses are taxable in Georgia, though subject to the same retirement income exclusions as other retirement income.
State Tax Rates (For Other Income)
Georgia operates on a flat income tax system:
- State income tax rate: 5.75% (flat rate as of 2024)
Standard deduction: $12,000 (single), $24,000 (married filing jointly) for 2025
Comparison to Neighboring States
| State | Military Retirement | Income Tax Rate | Property Tax Exemption (100%) |
|---|---|---|---|
| Georgia (2025) | Partial ($35K-$65K) | 5.75% flat | Up to $121,812 |
| Georgia (2026+) | $65K exempt (all ages) | 5.75% flat | Up to $121,812 |
| Alabama | 100% exempt | 2-5% | Full exemption |
| Florida | N/A | No income tax | Limited exemption |
| Tennessee | N/A | No income tax | Varies |
| South Carolina | 100% exempt (age 65+) | 0-6.5% | Up to $50,000 |
| North Carolina | $4,000-$35,000 exempt | 4.5% flat | $45,000 assessed value |
Georgia's 2026 changes significantly improve its position, though it still trails Alabama's full exemption and no-income-tax states like Florida and Tennessee.
Property Tax Exemptions for Veterans
100% Disabled Veterans - Up to $121,812 Exemption
If you're rated 100% Permanent and Total (P&T) by the VA, you qualify for a homestead property tax exemption of up to $121,812 (2025 amount, adjusted annually).
Important: This is the exemption amount, not a cap on your home's value. If your home's assessed value exceeds this amount, you pay property tax only on the excess.
Who qualifies:
- Veterans verified by VA as 100% service-connected disabled
- Veterans rated unemployable receiving statutory awards for loss of limbs, sight, or specific injuries
- Unremarried surviving spouses or minor children of qualifying veterans
No age restrictions. No income limits.
Real-World Examples
Property tax rates vary significantly by county in Georgia. Here are real savings:
Fulton County (Atlanta)
- Home value: $400,000
- Assessed value: $160,000 (40% of market value)
- County property tax rate: ~1.15%
- Without exemption: $1,840/year
- With exemption: $437/year (only pay on $38,188 over exemption limit)
- Annual savings: $1,403
Cobb County (Marietta/Kennesaw)
- Home value: $350,000
- Assessed value: $140,000
- County property tax rate: ~1.10%
- Without exemption: $1,540/year
- With exemption: $200/year
- Annual savings: $1,340
Gwinnett County
- Home value: $375,000
- Assessed value: $150,000
- County property tax rate: ~1.20%
- Without exemption: $1,800/year
- With exemption: $339/year
- Annual savings: $1,461
Columbia County (Augusta area)
- Home value: $300,000
- Assessed value: $120,000 (fully covered by exemption)
- County property tax rate: ~0.95%
- Without exemption: $1,140/year
- With exemption: $0
- Annual savings: $1,140
Chatham County (Savannah)
- Home value: $320,000
- Assessed value: $128,000
- County property tax rate: ~1.25%
- Without exemption: $1,600/year
- With exemption: $78/year
- Annual savings: $1,522
Partial Disability Ratings
Unfortunately, Georgia doesn't offer graduated property tax exemptions for veterans with disability ratings below 100%. If you're rated 90%, 70%, or any percentage under 100%, you don't qualify for the disabled veteran homestead exemption.
However, other standard homestead exemptions may be available through your county.
Important Notes on Georgia Property Tax Assessment
Georgia assesses property at 40% of fair market value. So a $300,000 home has an assessed value of $120,000. The $121,812 exemption applies to the assessed value, not market value.
Example:
- Market value: $305,000
- Assessed value (40%): $122,000
- Exemption: $121,812
- You pay tax on: $188 (effectively tax-free)
Vehicle Registration Benefits
100% Disabled Veterans - One Vehicle Exempt
Service-connected disabled veterans rated 100% receive a valuable vehicle tax exemption:
Exemption: One vehicle exempt from ad valorem tax (property tax on vehicles)
How it works:
- Free Disabled Veteran (DV) specialty license plate required
- Exemption applies to whichever vehicle displays the DV plate
- No registration fees, manufacturing fees, or annual fees for the DV plate
- Purple Heart and Medal of Honor plate holders also qualify
What you save: Ad valorem tax in Georgia varies by county but typically ranges from $200-$800 annually depending on vehicle value and county tax rate.
Example savings:
- $30,000 vehicle in Fulton County
- Assessed value (40%): $12,000
- County ad valorem rate: ~1.15%
- Annual savings: ~$138 (plus registration fees)
Surviving Spouses
Unremarried surviving spouses or minor children of qualifying disabled veterans may continue to receive the vehicle exemption.
Application Process
- Obtain VA entitlement letter showing 100% disability
- Visit your county tax commissioner's office
- Apply for Disabled Veteran specialty license plate
- Provide proof of disability rating and vehicle ownership
- Exemption automatically renews annually with the DV plate
Other Financial Benefits
State Hiring Preference
Georgia offers meaningful employment preference for veterans seeking state government jobs.
Point system:
- War veterans: 5-point credit added to exam scores
- Veterans with 10%+ disability: 10-point credit
- Spouses of disabled veterans (whose disability disqualifies them from employment): 10-point credit
- Unremarried surviving spouses of veterans who died during wartime: 10-point credit
Protection during layoffs: Veterans with preference must be retained over non-preference employees during reductions in force.
Where to apply: Georgia Department of Administrative Services
This is huge if you're seeking stable government employment. State jobs in Georgia offer solid benefits, retirement plans, and job security.
Hunting and Fishing Licenses
Georgia offers discounted or free lifetime hunting and fishing licenses for:
- 100% service-connected disabled veterans
- Former POWs
- Purple Heart recipients
Lifetime Sportsman License typically costs $700+. Qualifying disabled veterans receive significant discounts or free licenses.
Contact: Georgia Department of Natural Resources - (800) 366-2661
Sales Tax
Georgia does not offer sales tax exemptions for veterans on general purchases. State sales tax is 4%, with local taxes bringing the total to 6-8% in most counties.
Financial Impact Analysis
Let's calculate the 20-year financial impact for a 100% disabled veteran retiring in Georgia vs. other states.
Scenario: E-7 Retiree, 20 Years Service, 100% Disabled, Age 45
Annual income:
- Military retirement: $32,000
- VA disability: $42,000 (100% with spouse + 2 kids)
- Total: $74,000
Home: $325,000 (median for Georgia metro areas) Assessed value: $130,000
Georgia Savings Over 20 Years (2026 Tax Law)
| Benefit | Annual Savings | 20-Year Total |
|---|---|---|
| Property tax exemption | $1,400 | $28,000 |
| Military retirement (2026 law: $32K all exempt) | $1,840 | $36,800 |
| Vehicle ad valorem tax | $150 | $3,000 |
| Hunting/fishing license | $50 | $1,000 |
| TOTAL | $3,440 | $68,800 |
Note: Using 2026 tax law where all $32K military retirement is exempt. Under 2025 law, only $17,500 would be exempt (savings would be $1,006/year less).
Comparison: Georgia vs. Neighboring States
Same scenario across different states:
| State | Property Tax Savings | Income Tax Savings | Total 20-Year Savings |
|---|---|---|---|
| Georgia (2026) | $28,000 | $36,800 | $68,800 |
| Alabama | $52,000 | $64,000 | $120,000 |
| Florida | $0 (no exemption) | $64,000 (no state tax) | $68,000 |
| Tennessee | Varies | $64,000 (no state tax) | $70,000+ |
| South Carolina | $20,000 | $0 (not 65+) | $23,000 |
Reality check: Georgia's benefits are solid but not elite. Alabama offers the best combination in the Southeast. However, Georgia's job market, especially in Atlanta and around military installations, may offset lower tax benefits.
How to Claim Your Benefits
Step 1: Property Tax Exemption
Timeline: Apply between January 1 and April 1 for exemption that year
Required documents:
- VA rating decision letter showing 100% P&T
- Georgia driver's license showing residency
- Property deed or mortgage statement
- Completed homestead exemption application (Form PT-50D)
Where to apply: Your county tax commissioner's office
Major county tax offices:
- Fulton County: (404) 612-6440
- Gwinnett County: (770) 822-8800
- Cobb County: (770) 528-8600
- DeKalb County: (404) 298-4000
- Chatham County (Savannah): (912) 652-7100
- Columbia County (Augusta area): (706) 312-7475
- Muscogee County (Columbus): (706) 653-4300
- Clayton County: (770) 477-3311
Processing time: 30-60 days typically
Deadline: April 1 for current tax year
Step 2: Vehicle Ad Valorem Tax Exemption
Where: County tax commissioner's office
Documents needed:
- VA rating decision letter showing 100% disability
- Current vehicle registration
- Georgia driver's license
- Vehicle title or proof of ownership
Process:
- Apply for Disabled Veteran specialty license plate
- Pay no fees (plate is free)
- Display DV plate on vehicle
- Exemption applies automatically
Renewal: Automatic with annual registration as long as you maintain the DV plate
Step 3: State Hiring Preference
For veterans seeking state government jobs:
- Search jobs at Georgia Department of Administrative Services
- Apply for positions you're qualified for
- Provide DD-214 showing honorable discharge
- Indicate veteran status on application
- If 10%+ disabled, provide VA rating letter
Documentation: Keep copies of DD-214 and VA rating letters ready for all applications
Frequently Asked Questions
Do I need to reapply for the property tax exemption every year?
No. Once approved, the exemption continues automatically as long as:
- You maintain 100% P&T rating
- The property remains your primary residence
- You notify the county if you move
What if I'm rated 90% or lower?
Georgia doesn't offer property tax exemptions for ratings below 100% based solely on VA disability. However, you still benefit from:
- State income tax exemption on military retirement (up to $65K starting 2026)
- Tax-free VA disability compensation
- State hiring preference (10 points for 10%+ disability)
You do NOT qualify for the vehicle ad valorem tax exemption unless you're 100%.
Can I get the property tax exemption on a second home or rental property?
No. The exemption applies only to your primary residence.
Does the exemption cover school taxes?
This varies by county and school district. In most Georgia counties, the disabled veteran exemption applies to county, city, and school taxes, but confirm with your local tax commissioner.
What if I'm rated 100% but not Permanent & Total?
The law specifically requires verification of "100 percent totally and permanently service-connected disabled" status. If you're 100% schedular but not P&T, check with your county tax office. You may need to work with VA to convert to P&T status.
What happens if I sell my home and buy another in Georgia?
You'll need to reapply for the exemption in your new county between January 1 and April 1. Bring:
- Your previous exemption approval (helpful but not required)
- New property documentation
- Your VA rating letter
When does the new military retirement tax law take effect?
The $65,000 exemption for all ages takes effect for the 2026 tax year - meaning taxes you file in 2027 for income earned in 2026.
For 2025 taxes (filed in 2026), the old age-based limits still apply.
Can my surviving spouse keep the property tax exemption?
Yes. Georgia law specifically allows unremarried surviving spouses or minor children of 100% disabled veterans to maintain the homestead exemption.
What if my county denies my exemption application?
You have the right to appeal. Contact:
- Georgia Department of Veterans Service: (404) 656-2300
- County tax commissioner (request appeals process)
- County veterans service officer
- Georgia Legal Services (for legal assistance)
Does Georgia tax my TSP or 401(k) withdrawals?
Yes, at Georgia's 5.75% flat rate. Qualified retirement account withdrawals are treated as regular income. However, if you're 65+ or 62-64, you may be able to exclude up to $65,000 or $35,000 respectively under the general retirement income exclusion.
Will these benefits affect my federal taxes?
No. Property tax exemptions and state income tax exemptions don't impact your federal tax liability. Military retirement and VA disability compensation remain tax-free at the federal level regardless of state benefits.
Can I claim both the retirement income exclusion and the property tax exemption?
Yes! These are separate benefits. A 100% disabled veteran can:
- Exclude up to $65K of military retirement from state income tax (2026+)
- Receive full property tax exemption (up to $121,812)
- Get vehicle ad valorem tax exemption
- Claim state hiring preference points
Key Takeaways
Georgia delivers improving value for veterans:
- 100% disabled veterans can save $25,000-$50,000+ over 20 years through property tax exemptions
- All military retirees (2026+) keep up to $65,000 of retirement pay tax-free regardless of age
- 100% disabled veterans get one vehicle exempt from ad valorem tax
- All veterans get 5-10 point preference for state government jobs
- Strategic advantage: Georgia's job market (especially Atlanta, Fort Moore area, Robins AFB) may compensate for benefits not being as generous as Alabama
Combined with Georgia's cost of living (9% below national average outside metro Atlanta), these benefits help stretch your retirement dollars.
Action item: If you're 100% P&T and haven't applied for the homestead exemption yet, do it before April 1. You could save $1,000-$2,500+ this year alone.
Resources
- Georgia Department of Veterans Service: (404) 656-2300 | veterans.georgia.gov
- Property Tax Exemption Info: veterans.georgia.gov/disabled-veteran-homestead-tax-exemption
- Georgia Department of Revenue: dor.georgia.gov
- Veterans Service Officers: Available in every county
- State Benefits Handbook: Download from Georgia DVS
Information current as of January 2025. Tax laws and benefit amounts may change. The $65K military retirement exemption for all ages takes effect for 2026 tax year. Verify specific details with your county tax commissioner and the Georgia Department of Veterans Service.