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Georgia Legislature Approves Income Tax Cuts, Sends Property Tax Workaround to Kemp

Revenue triggers seek to protect the budget as Democrats warn of deep gaps.

Overview

  • Georgia’s General Assembly approved House Bill 463 late Thursday on the session’s final night, sending a broad income‑tax cut package to Gov. Brian Kemp.
  • The plan lowers the flat rate to 4.99% in 2026 and then steps it down to 3.99% over eight years if conditions are met.
  • Standard deductions rise to $30,000 for joint filers and $15,000 for single filers, and up to $1,750 in tips and overtime is tax‑free from 2026 through 2028, which could boost take‑home pay for hourly workers.
  • To limit shortfalls, the cuts depend on revenue triggers that require more than 3% yearly growth and higher net collections than the prior three years, and the bill repeals credits including for telework and electric or hybrid vehicles.
  • In a separate move, Republicans recast a hemp bill into Senate Bill 33 to let counties use a new 1% sales tax to lower property tax bills through county taxing districts, a tactic Democrats opposed as they warned the income‑tax plan could leave a multibillion‑dollar gap.