Members of the Georgia Senate passed legislation late last Thursday that bill sponsor Sen. Blake Tillery, R-Vidalia, will eliminate the state income tax for two-thirds of Georgians, reduce the tax rate for the other third by over $5,000, and eventually eliminate the state income tax for everyone. The two proposals were unanimously backed by the Senate Republican Caucus, and now move to the House for consideration.
“Georgia families and small businesses will get tax relief while the budget priorities of the state are fully funded,” said Tillery.
The legislation includes Senate Bill 476, the Income Tax Reduction Act of 2026, which would provide tax relief on the first $50,000 of income for individual filers and the first $100,000 for joint filers. Senate Bill 477 would further reduce Georgia’s personal income tax rate year over year, continuing the state’s steady march toward lower taxes and a more competitive economy.
“Georgians deserve to keep more of what they earn,” said Sen. Tillery. “Families still feel the squeeze of inflation and higher costs driven by bad federal policy, and the last thing they need is state government taking a bigger bite out of their paycheck. By cutting income taxes, we’re giving people real relief and more control over their own money.”
Tillery added, “Georgia’s success is the result of disciplined budgeting, pro-growth policies and Republican leadership. We have proved time and time again you can cut taxes, balance the budget, and still be the best state in the nation to do business, and this legislation continues that model.”
Sen. John Albers, R-Roswell, applauded the passage and added that these two measures will deliver the largest tax relief in Georgia’s history and position the state to completely eliminate the state income tax.
“When Republicans first took control of state government, Georgia’s income tax rate was 6 percent, and it had been there for more than 30 years under Democratic leadership. We’ve now lowered that rate to 5.19 percent and returned billions of dollars to the people who earned it. These pieces of legislation were only the next step in that mission,” said Albers.
Tillery pointed out that SB 476 follows through on Governor Brian Kemp’s goal of cutting the state income tax rate to 4.99 percent for both individuals and corporations. To offset the cost, the legislation eliminates or scales back 29 targeted tax credits and applies a five-year sunset to ensure continued legislative oversight.
“SB 476 is about simplifying the tax code, making it fairer and putting more money directly back into the pockets of hardworking Georgians,” said Majority Leader Jason Anavitarte, R-Dallas. “Government doesn’t create prosperity; it is families and small businesses that do. Taken together, these two bills are transformational. They create a clear, responsible pathway to eliminating the state income tax altogether. At a time when families are struggling with higher costs, we are choosing to trust them, not the government, with their own money. This is about affordability, freedom and making sure Georgia families always come first.”
Senate Bill 477 builds on that commitment by setting the income tax rate at 4.99 percent and creates a clear path to lower the personal rate to 4.49 percent in 2027 and 3.99 percent in 2028, subject to a revenue trigger. The measure also raises the standard deduction to $16,000 for single filers and $32,000 for married couples while retaining the 4.99% corporate rate.
“The Senate is leading the effort to continue making significant cuts to our income taxes, while maintaining the fiscal soundness of our state,” said Lt. Governor Burt Jones. “I look forward to working with the House and Governor on how to maximize tax relief and get an income tax cut over the finish line immediately.”
