Georgia Officials Unveil Plans to Expedite State Income Tax Reduction

Georgia Officials Unveil Plans to Expedite State Income Tax Reduction

Atlanta, GA – Governor Brian P. Kemp, flanked by First Lady Marty Kemp, Lieutenant Governor Burt Jones, Speaker Jon Burns, and General Assembly members, announced a collective commitment to fast-track legislation aimed at accelerating the reduction of the state individual income tax rate. The proposed amendment to HB 1437, a measure initially planning a gradual reduction starting in 2025, intends to implement a swifter decrease in the tax rate.

The modified legislation will adjust the rate for Tax Year 2024 to 5.39 percent, a decrease of 36 basis points from the initially set 5.75 percent in Tax Year 2023. The amendment seeks to expedite the income tax reduction outlined in HB 1437, positioning it at 4.99 percent once fully realized.

Governor Kemp highlighted the state’s fiscal responsibility and robust economy, built on business-friendly policies, as factors enabling the acceleration of the income tax reduction. He emphasized the aim to put more money back into the pockets of Georgians and expressed optimism about collaborating with the legislature to provide further relief.

The Office of Planning and Budget estimates potential savings of approximately $1.1 billion for Georgia taxpayers in calendar year 2024 as a result of the proposed tax cut acceleration and the previously legislated 26 basis-points reduction in HB 1437.

Lt. Governor Burt Jones commended the strategic decision, considering it a positive step toward the ultimate goal of eliminating Georgia’s income tax. Speaker of the House Jon Burns echoed the sentiment, emphasizing the conservative principle that low taxes stimulate economic growth and contribute to Georgia’s reputation as an attractive place to live and work.

The announcement aligns with Governor Kemp’s commitment to responsible fiscal governance and delivers on the promise of providing financial relief to Georgia families in the face of economic challenges.