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Gov. Kemp proposes his 4th income tax rebate during his final State of the State address

Georgia Gov. Brian Kemp has announced plans for a fourth income tax rebate during his final State of the State speech.

On the floor of the Georgia Capitol on Thursday, Kemp said he wants to spend $1.17 billion from the state's budget surplus to give income tax rebates of $500 per family or $250 per person.

"With this rebate, my administration and this General Assembly will have returned over $7.5 billion in surplus revenue to the taxpayers of our state over the last four years," Kemp said.

The governor continued calls to speed up Georgia's planned income tax cuts, proposing a 20-basis-point reduction to get the state's flat tax rate down to 4.99%.

State of the State Georgia
Gov. Brian Kemp waves after the State of the State speech with Speaker of the House Jon Burns on his left and Lt. Gov. Burt Jones on his right on Jan. 15, 2026, in Atlanta. Brynn Anderson / AP

"We must continue doing everything in our power to allow the hardworking men and women of our state to keep more of their hard-earned money in their pocket in the years to come," he said. "Because as I've said before: that's your money - not the government's."

The governor pointed to the state's "rainy-day fund and strategic reserves" that he said were "enough to run state government for three months."

Teacher bonuses and infrastructure investment

During the speech, Kemp called for $2,000 one-time bonuses for teachers and university and state employees. That's a throwback to the signature promise from his first term that he delivered — $5,000 raises for every teacher. 

The governor wants to increase retirement payments to law enforcement and endow $325 million for Georgia's first comprehensive need-based college aid program.

A day before, Kemp had announced plans to spend more than $2 billion on infrastructure improvement, most of which will go to adding toll express lanes on Interstate 75 south of Henry County.

"Refusing to grow government, budgeting conservatively, and paying off debt aren't flashy," he said.

Kemp's future uncertain as he prepares to leave office

Kemp used part of his final State of the State to look back at his time in office. Georgia law limits governors to two terms. He pointed toward major investments by companies like Hyundai or Italian food purveyors La Regina.

With less than a year to go in office, it's not certain what Kemp, who remains popular in the state, will do next. He declined to take on Democratic Sen. Jon Ossoff in November, choosing instead to endorse Derek Dooley, a former University of Tennessee football coach.

Thus far, Kemp has stayed out of the governor's race, although one of the top Republicans jockeying to succeed him — Attorney General Chris Carr — calls himself a "Brian Kemp Republican." Georgia Lt. Gov. Burt Jones is another looking to take the seat.

Kemp is also trying to stamp his imprint further down the ballot. For example, he appointed John King as insurance commissioner and Barbara Rivera Holmes as labor commissioner. They are Georgia's first two Hispanic officials in statewide elected offices, part of a Kemp push to expand the party beyond white voters as Georgia grows more diverse.

The Associated Press contributed to this report.

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