Overview
- SB 476 passed 32–18 and would exempt the first $50,000 of income for single filers and $100,000 for joint filers, eliminating state income taxes for many households under those thresholds in the first year.
- Companion bill SB 477 advances a phased rate cut from 5.19% to 4.99% in 2026, 4.49% in 2027, and 3.99% in 2028 if revenues grow at least 1% annually, while dropping the corporate rate to 4.99%.
- To offset revenue losses, the plan rolls back or sunsets a wide array of tax credits and exemptions, with all income tax credits expiring by 2032 and targeted cuts including data center incentives and niche sales-tax breaks.
- Republicans frame the measures as middle-class relief that avoids hikes to motor fuel or sales taxes, while Democrats warn of multibillion-dollar shortfalls and potential cuts to education, healthcare, and infrastructure.
- The Senate action sends the legislation to the Georgia House, where leaders are also prioritizing property tax relief, and final passage would still require both chambers to approve identical versions before reaching the governor.