$1B In Tax Rebates, $2K Teacher Bonuses Proposed In GA Budget

ATLANTA, GA — Before bidding farewell, Gov. Brian Kemp is once again proposing to return $1 billion in surplus funds to Georgia taxpayers and is planning to cut taxes by 20 points this year.

Additionally, he included a one-time, $2,000 pay supplement for all state employees in the amended fiscal year 2026 and fiscal year 2027 budget. This includes educators and state public safety officers.

Kemp, in his final term as governor, announced his intentions as he delivered his final State of the State address Thursday to the Georgia General Assembly. He has served two terms as Georgia governor and is not allowed to run for a third term, per state law.

If legislators pass Kemp's budget proposal as is, this will be his fourth time cutting taxes and sending tax rebates to Georgia residents. As in the past, single filers will receive $250 and married couples filing jointly will receive up to $500.

Past tax refunds have included $375 for head-of-household filers; however, Kemp did not mention these filers in the proposal.

"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 in his address.

"But we also know that one-time relief is a short-term solution that recognizes the state has collected more of your tax dollars than it needs to fund our priorities and save for whatever the future may bring. 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. Because as I’ve said before: that’s your money — not the government’s."

Previously, to receive the rebates, taxpayers would have had to file returns for the prior years. Last year's passage of the rebates came on Crossover Day in March.

The proposed 20-point tax reduction will bring the income tax rate to 2.99 percent, Kemp said.

He boasted a $4.1 billion cash reserve for capital projects since FY 2024, saying Georgians will be able to save $3.3 billion in interest payments in the next 20 years.

"These important investments, tax cuts, rebates and record state reserves would not be possible without the drive and hard work of millions of Georgians who get up every day and do the best they can to provide for themselves and their families. They go to work chasing the American Dream, hoping to earn an honest living, and leave their kids and grandkids better off than they had it," Kemp said.

"That’s the American Spirit and the spirit of what it means to be a Georgian. When I launched my campaign for governor, it was about promising those hardworking Georgians that I would fight for them every day, whether they voted for me or not, regardless of their neighborhood or zip code. Republican or Democrat or something in between, my goal was to make a positive difference in their lives."

Aside from $2,000 bonuses for educators and other state workers, Kemp plans to reduce classroom sizes from 22 students to 20 students and spend $25 million to replace school buses.

More than $14 million would benefit enrollment growth for the special needs scholarship, and $264,055,000 would go toward constructing and renovating public schools.

“I deeply appreciate Governor Kemp’s inclusion, in the state budget, of a one-time $2,000 pay supplement for Georgia’s hardworking educators. I urge the Georgia General Assembly to pass a final budget with these bonuses included," Georgia School Superintendent Richard Woods said in a statement on Thursday.

"Governor Kemp has been a true champion of Georgia teachers, increasing teacher salaries by $9,500 during his time in office. I deeply appreciate the historic investments he’s made in Georgia educators. As I shared in November, to secure Georgia’s status as the Top State for Talent, we must strengthen and sustain our educator workforce. The $2,000 bonus Governor Kemp proposed today aligns perfectly with these goals. I continue to call for Georgia to increase pay for teachers and certified staff by a total of $10,000 over the next five years, establish a competitive state salary schedule for classified staff, expand the teacher salary schedule beyond 21 years and restore funding to increase compensation for educators who earn a leadership degree. I urge our next Governor to continue the momentum of Governor Kemp’s term and keep investing in Georgia teachers, schools and students.”

Kemp's budget proposal includes investments in the workforce, health-care industry, the Department of Natural Resources and the Department of Transportation.

See the full budget online.