Moving From Georgia to Chattanooga
The short drive that feels like a tax move — but mostly isn’t. Here’s where the real savings are.
Home › Chattanooga › Moving from Georgia
Why the income-tax savings are smaller than you think
Georgia has a flat 5.19% income tax (2025), which sounds like a lot to escape. But Georgia is deliberately retirement-friendly: it fully exempts Social Security, and it lets each resident 65 or older exclude up to $65,000 of retirement income per person (pensions, IRA and 401(k) withdrawals, even interest, dividends, and capital gains). A married couple, both 65+, can shield up to $130,000 of retirement income before Georgia taxes a dollar.
| Couple, both 65+, retirement income | GA income tax (approx.) | TN income tax |
|---|---|---|
| $100,000 (under the $130k exclusion) | ~$0 | $0 |
| $130,000 (at the exclusion) | ~$0 | $0 |
| $180,000 ($50k over the exclusion) | ~$2,595 | $0 |
So unless your retirement income is well into six figures, the income-tax difference between Georgia and Tennessee is small or zero. (If you’re still working in retirement, that earned income is fully taxed in Georgia — there, Tennessee’s 0% does help.)
Where you actually save: property tax and cost
This is the real case. Metro Atlanta property taxes and home prices generally run higher than the Chattanooga area, and a county-only address in Ooltewah carries an effective property-tax rate around 0.38%. Combine lower home prices, low property tax, and no income tax on the portion of your income that was taxable in Georgia, and the month-to-month cost of living typically drops.
- No estate or inheritance tax in either state — a wash there.
- Sales tax is similar-to-higher: Georgia averages around 7.8% combined; Hamilton County is about 9.25%, and Tennessee taxes groceries. Budget for that.
- Location: Chattanooga is roughly two hours north of Atlanta — close enough to keep family ties, far enough to leave the congestion and cost behind.
The honest verdict for Georgians
Don’t move for the income tax — for most 65+ Georgia retirees that’s nearly a wash. Move for lower home prices, lower property taxes, the mountains and riverfront, and the short hop back to Atlanta. See the full TN retirement tax picture and the total cost comparison. And if you’re weighing a home just over the line in Ringgold or Fort Oglethorpe, compare both sides in our TN vs. North Georgia guide.
Ready to take the next step on
the right 55+ community?
Connect with a specialist who knows this market from the inside — real cost math, honest community comparisons, and what's actually happening right now. Every agent is personally vetted by the Nova55Living founder.
Connect with a Specialist →