Georgia Governor Accelerates Largest State Income Tax Cut in History

Georgia Governor Accelerates Largest State Income Tax Cut in History

Governor Brian P. Kemp, alongside First Lady Marty Kemp, state legislators, and local leaders, signed HB 1015 into law in Augusta today. This move accelerates Georgia’s largest state income tax cut in history.

Sponsored by Representative Lauren McDonald and co-sponsored by Speaker Pro Tempore Jan Jones, Chairman Shaw Blackmon, and others, HB 1015 builds upon HB 1437. HB 1437 initially provided for a step down of 10 basis points in the income tax rate, starting in 2025.

With the acceleration, the income tax rate for Tax Year 2024 will be 5.39 percent, down from 5.49 percent set by HB 1437. This marks a 36 basis-point reduction from the Tax Year 2023 rate of 5.75 percent.

The Office of Planning and Budget estimates savings for Georgia taxpayers of approximately $1.1 billion in 2024 alone due to the tax cut acceleration and reductions from HB 1437. Over the next decade, the savings are projected to reach around $3 billion.

Governor Kemp stated, “Washington D.C. politicians are currently working to raise taxes on hardworking Americans, but here in Georgia we are keeping to our commitment to grow our economy and opportunity for the people of our state, not government.”

In addition to HB 1015, Governor Kemp also signed HB 581HB 1021HB 1023, and SB 496..

HB 1023 lowers the corporate income tax rate from 5.75 percent for Tax Year 2024 to 5.39 percent by matching it with the individual income tax rate.

HB 581 enables a constitutional amendment for counties to provide a statewide homestead valuation freeze and offers a special local option sales tax for property tax relief.

HB 1021 increases the state’s income tax dependent exemption by 33%.

SB 496 expands the criteria for historic home certification and extends tax credits for rehabilitation of historic homes and structures.

Governor Kemp expressed appreciation for all involved in passing these bills.