Active-duty and reserve pay
Military pay of Georgia residents is taxed like other wages.
An E-5 with over 6 years of service earns $49,320 a year in basic pay, and an O-3 with over 6 years $92,844. In Georgia, that basic pay is generally part of state taxable income. Housing and food allowances are never taxed by any state.
Military retired pay
Up to $17,500 of military retired pay is excluded below age 62, more with Georgia earned income, and larger retirement exclusions apply from age 62.
Your state of legal residence decides
Military pay is taxed by your state of legal residence, usually the state you lived in when you joined or one you later adopted by changing your records, not by the state where you are stationed. This comes from the Servicemembers Civil Relief Act. Spouses can choose to use the member's state of legal residence for their own income too.
See your total pay with state tax
Questions
Does Georgia tax military pay?
Georgia taxes military pay like other wages. Military pay of Georgia residents is taxed like other wages.
Does Georgia tax military retirement pay?
Up to $17,500 of military retired pay is excluded below age 62, more with Georgia earned income, and larger retirement exclusions apply from age 62.
Is BAH taxed in Georgia?
No. BAH and BAS are not taxable income for federal or state tax in any state.
Which state taxes me if I am stationed in Georgia?
Under the Servicemembers Civil Relief Act, your military pay is taxed only by your state of legal residence, not the state where you are stationed. If Georgia is not your legal residence, Georgia does not tax your military pay.