State Taxes In Georgia Are BRUTAL!!! (Atlanta, Jersey: 2009, apartment, rent)

[jeff3166]

After receiving my first paycheck/pay statement here in Georgia (having just moved here late last month), it was a bit of an eyebrow-raiser (to say the least) when I noticed the dollar amount that was deducted from my pay for state taxes.

It was enough of an eyebrow-raiser that I broke out a calculator and did some calculating. When finished calculating, I was seeing RED.

I calculated that the state of Georgia is taxing my income to the tune of 5.5%, compared to the 3% my former state of residence (Illinois) was taxing my income!

To add insult to injury, I also found out that my military retirement pension will be taxed to the same sour tune of 5.5% as well! My former state of residence-- while they did have state taxes for income (the beforementioned 3%), they did NOT tax military retirement pensions (ie:0%).

I'll admit that I may be a little bit spoiled, having been a legal resident of Florida (no state taxes) for the first 24 years of my income-earning/tax-paying life, but this seems to be a bit of excessive taxation to me!

The honeymoon is officially over!

[Ollie1946]

Even Ohio recently passed legislation exempting military pensions as does PA. I think Alabama exempts military and social security. I am thinking of doing some looking over in Huntsville area or north AL. I also believe AL property taxes are lower than most. Yes, Georgia is a serious ripoff in the tax area.

[jeff3166]

Ollie1946- Was looking at military.com in the finance/taxes section and in a quick look, it looks like about 1/3 of the states don't tax military retirement pensions. I would property taxes in Al are lower than in GA, but am not sure. I'm hoping to eventually get back to Florida, where there's no state taxes on any income earned.

[Ollie1946]

I ran my numbers when considering moving to Florida from GA and between insurance rates there plus property taxes it pretty much equaled out in my case. I don't blame you for wanting to relocate. These days GA is a confused state run by confused people who believe Atlanta is the only part of GA that counts. Sorry situation. At least in Florida you can fish off the bloody bridges and have some access to water even if you cannot afford to live on it. North Georgia used to be a grand place to visit and live, but now it is overrun with people building houses everywhere. I hope you find what you want.

[BobKovacs]

Sounds like somebody didn't do enough research prior to moving.......

You also didn't mention property taxes- have you factored in the savings over your previous residence in Illinois? I'll gladly the additional $2k in state income tax over what I was paying in NJ, since I'm saving around $5k in property taxes, and we've got 3x as much house.

[Calcbunny]

I'm with Bob, I moved here from South Jersey and my home here is huge, my taxes low, and the neighbors actually talk to each other.

[FlourChild]

Originally Posted by jeff3166

Ollie1946- Was looking at military.com in the finance/taxes section and in a quick look, it looks like about 1/3 of the states don't tax military retirement pensions. I would property taxes in Al are lower than in GA, but am not sure. I'm hoping to eventually get back to Florida, where there's no state taxes on any income earned.

You're absolutely right: AL state property taxes are considerably lower than GA's. Our property tax QUADRUPLED when we moved here. My husband's state income taxes went up considerably too. And it's not like we're getting much in return--crummy roads, no police protection to speak of, abominable schools. Atlanta essentially bleeds the rest of Georgia dry.

[jeff3166]

Bob- you are right regarding the lack of research conducted by me prior to moving here. That was an astute observation on your part ().

Just a little background-- In the spring of 2007 I moved from Florida to Illinois to start/take a new job, with the thought process of eventually getting transferred by the same organization back to Florida. Involved in the thought process was the fact that I might have to make a stop or two along the way, before finally getting to Florida. So when offered the transfer to Georgia in March, outside of some basic cost of living research, I did no research. Knowing that south Georgia isn't where I wanted to be forever, I realized that it's atleast close enough to where I wanted to be in Florida that I could easily and frequently make trips there on weekends, so I accepted the transfer in April.

So with that said, I don't plan on being in Georgia long, like I didn't plan on being in Illinois for long. With that in mind, I didn't purchase property in either state, renting a one bedroom apartment in each state. While renting, I don't directly see the benefit of lower property taxes, unless you want to take into account the fact that my rent is lower here in Georgia, compared to Illinois, in part because property taxes are less here than there. If you do want to take that into account though, you can also take into account that, generally speaking, one makes less in salary/wages here in Georgia, compared to Illinois, for doing the exact same job.

You know, all states have their various ways of sapping money from you. One way or another they're going to get their's. For the situation that you are in, it is apparently beneficial for you to be here, as opposed to where you previously were. For me, with my situation (earning an income while single w/ no dependents, receiving a military retirement pension, renting an apartment, etc.), I'm seeing little-to-no benefit at all from Georgia supposedly being a lower cost of living state than Illinois is/was.

I've only been receiving the military retirement pension for a couple of years, so call me dumb or naive if you want (I'm sure I've been called worse in the past), but I just assumed (yes, I know that saying in regards to assuming) that since my military retirement pension wasn't taxable in Florida or in Illinois, that that was pretty much the standard procedure in most (if not all) states. As I now know, that isn't true in regards to some states, including Georgia.

That wasn't my first bad assumption though, in regards to the financial matters in moving from Illinois to Georgia. Before moving down here, I called my insurance company, thinking I'm about to find out how much cheaper a 6-month auto insurance policy would be in middle-of-no-where, SW Georgia, compared to the 6-month policy I had in metro-Chicago, with all the traffic, horrible driving conditions for 4 months per year, etc. I was practically giddy on the phone, until being unpleasantly surprised in finding out that the exact same 6-month policy in Georgia would cost me $150 more. Talk about a buzz-kill.

Oh well, live and learn (and pay taxes, of course) I guess. I've lived in 5 different states (Mississippi, Virginia, Florida, Illinois, and now Georgia) in the past 5 years, hopefully in 2009 I'll be moving again, and atleast 75 miles south of where I currently am.

FlourChild- I feel your pain, and imagine you're right regarding Atlanta getting more than their fair share of the state's tax dollars, for one reason or another. As for the roads though, having spent this past winter dodging craters (aka potholes) in the roads while driving, I LOVE the roads here!

[Katsmeeyow]

The roads are great, aren't they? Being an Owner Operator of several big trucks, we have been all over, and GA has wonderful roads!

Been called worse by better, have you?

LOL I am just yankin your chain - you are such a nice person it was good to see you defend your decisions! BRAVO!

Seriously, No disrespect meant to anyone.

[jeff3166]

LOL, worse by better and worse! And yep, no disrespect to anyone at all. Believe me, when I found out about the state taxes on income here and that the military retirement was subject to state taxes as well, the lack of me doing adequate research certainly crossed my mind. I couldn't be too upset with myself though, because I know that had I gathered all that info and known about it before deciding whether or not to accept the transfer, I would have accepted the transfer anyways.

And yes!...the roads are great here. I swear, one thing that constantly crossed my mind in Illinois while driving up there and dodging potholes (and not being able to dodge some potholes), after it was determined that I would be moving here was, "I will be SO glad when i don't have to deal with these roads anymore!!"