Kemp Seeks To Advance Record-Breaking GA Income Tax Cut

ATLANTA — Gov. Brian Kemp is planning to expedite what he calls the "largest income tax cut" in Georgia's history, his office announced Monday.

The joint proposed legislation by multiple state officials will amend House Bill 1437, which became effective in April 2022 and offers a decrease of 10 basis points in the income tax rate, Kemp's office said. HB 1437 set a 5.49 percent rate.

The amended legislation will start in 2025 and will continue yearly until the rate reaches 4.99 percent, Kemp's office said. The rate for Tax Year 2024 will be 5.39 percent.

"When I signed the largest income tax cut in state history in 2022, I did so with the understanding we would deliver on this promise in a responsible way," Kemp said in a news release. "Now, thanks to our conservative budgeting and strong state economy built on business-friendly policies, we are well-positioned to move the timeline up and put more money where it belongs - back into Georgians' pockets."

State officials estimate Georgia will save about $1.1 billion in 2024 due to the tax cut acceleration.

“Today’s announcement is a great step toward ultimately eliminating Georgia’s income tax, a top priority of mine,” Lt. Gov. Burt Jones said in the release. “I commend Governor Kemp and members of the legislature for strategically putting our state in the position to give more money back to every Georgian. Along with the announcement today and the work of the Joint Tax Review Panel, I am confident we will identify additional ways to improve our tax structure and keep Georgia the best place to live and work.”