Georgia state Senate approves personal income tax cut bills, legislation will move to the House for a vote
The Georgia state Senate has passed a series of bills that would reduce the state's personal income tax rate, aiming to deliver savings to taxpayers beginning next year.
SB 476
Senate Bill 476 would exempt the first $50,000 of taxable net income for individual filers and $100,000 for joint filers, providing significant upfront relief for Georgia taxpayers.
To offset the cost of these cuts, the legislation sets an expiration date for all income tax credits by 2032 and eliminates a broad array of corporate and special-interest tax breaks, an aggressive move to streamline Georgia's tax code and recalibrate the state's fiscal priorities.
SB 477
The measure, which cleared the Senate largely on party lines with robust Republican support, proposes a phased reduction of Georgia's flat personal income tax rate: from 5.19% to 4.99% in tax year 2026, then to 4.49% in 2027, and down to 3.99% in 2028—provided state revenues grow by at least one percent year-over-year.
The bill would also cut the corporate income tax rate to 4.99%, positioning Georgia as one of the most tax-competitive states in the region.
The move accelerates a previously approved schedule of tax reductions, with supporters arguing it will provide much-needed relief for working families and help Georgia remain economically competitive.
GOP gubernatorial candidates have quickly seized the opportunity to spotlight today's passage. Lt. Gov. Bt. Jones, who is running for governor in 2026, has added an annual income tax savings calculator to his campaign website.
"Georgia families deserve to keep more of what they earn," said Lt. Governor Burt Jones. "As families sit down to balance budgets and to file their taxes, they should be able to see exactly what this plan would mean for their household. Eliminating the state income tax will keep Georgia the best place in America to live, work, and raise a family and attract the jobs and talent that power our future."
"What happens next
Some Democratic lawmakers and other critics voiced concern about the procedure for passing the bill, others voiced concern over the bill's potential impact on state revenues and vital public services. They warn that reducing the tax rate could threaten funding for education, healthcare, and infrastructure across Georgia.
The bill now advances to the Georgia House of Representatives for further consideration. It must be approved by both chambers in identical form before going to the governor for signature.
If approved, it would mark another step in the state's ongoing efforts to lower personal income taxes for residents.
