How Much Would You Save: Georgia vs Florida Taxes

Georgia has accelerated through a major income tax overhaul. House Bill 1437 (signed 2022) replaced the graduated 5.75% top rate with a flat tax that began stepping down each year. On May 11, 2026, Governor Kemp signed House Bill 463, which cut the flat rate from 5.19% to 4.99% retroactive to January 1, 2026, reaching the sub-5% target three years ahead of the original schedule. While this is a meaningful reduction, Georgia taxpayers still pay nearly 5% on every dollar of taxable income. Florida residents pay 0%. At 4.99%, a Georgia household with $150,000 of Georgia taxable income still owes roughly $7,485 in state income tax that a Florida resident would keep entirely.

Cost of living is another factor worth examining carefully. Housing in the Atlanta metro's most sought-after suburbs has run well ahead of the metro average: as of mid-2026, Redfin put the median sale price in Alpharetta at roughly $792,000 and Roswell at roughly $645,000. Florida's large metros were meaningfully cheaper over the same period, with Tampa's median sale price around $466,000 and Jacksonville's in the high $300,000s. Groceries, utilities, and transportation costs are broadly similar between the two states. Housing markets move fast, so treat those figures as a mid-2026 snapshot rather than a fixed number. The difference that does not move is that Florida residents keep more of their paycheck, because there is no state income tax eating into their take-home pay.

Retirement income is where the Georgia-to-Florida comparison becomes especially stark. Georgia taxes most retirement income, including distributions from 401(k) plans, traditional IRAs, and pensions. While Georgia does offer a retirement income exclusion of up to $65,000 per person for residents age 62 and older (or $35,000 for those under 62 with certain income), anything above that threshold is taxed at the standard rate. A retired couple in Georgia with $180,000 in combined retirement income would still owe state tax on $50,000 of that income. In Florida, every dollar of retirement income is tax-free, with no exclusions to calculate and no thresholds to worry about.

For a Georgia homeowner, distinguish Florida homestead creditor protection from property-tax relief before including either in a move plan. Acreage limits, the kind of debt, ownership and federal bankruptcy rules can affect protection. A broad claim that one state always protects assets better is not a substitute for reviewing the actual property and obligations.

For Georgia residents considering the move, the geographic advantage is hard to ignore. Florida shares a border with Georgia and much of Florida uses Eastern time, and offers a transition that requires minimal disruption. Jacksonville is roughly 5 hours from Atlanta by car, and many Georgia residents already vacation along Florida's Gulf Coast or in the Orlando area. Family visits, business relationships, and professional networks remain easy to maintain. Unlike a cross-country relocation, moving from Georgia to Florida lets you keep your existing connections intact while eliminating your state income tax obligation entirely. The combination of tax savings, asset protection, and geographic convenience makes the Georgia-to-Florida move one of the most practical domicile changes in the country.