Georgia State Capitol by Warren LeMay is licensed under CC0
Republican lawmakers in Atlanta passed legislation last week moving Georgia closer to a 0% income tax, a win for taxpayers and businesses across the state. Thanks to Georgia’s adoption of a flat income tax in 2022, every Georgian family and small business will see a tax cut as a result of this year’s marquee income tax cut.
HB 463 will immediately lower the income tax to 4.99% from 5.09%, for the 2026 tax year. The legislation will also gradually decrease the income tax down to 3.99% over the next eight years, beginning in 2027. In addition, HB 463 raises standard deductions for joint filers from $24,000 to $30,000. It will rise $750 every year until it reaches $36,000. This legislation will put more money in taxpayers’ pockets and continue to draw businesses into the state.
Georgia has already seen a significant growth in jobs over the past decade, and the legislation passed last Thursday will only strengthen their competitive advantage. People vote with their feet, and the fastest growing states in the county – such as Tennessee, North Carolina, Texas, South Carolina, and Florida – all have either eliminated their state income tax or have committed to eliminating it over the next few years. HB 463 puts Georgia on track to joining this cohort of low tax, high growth states.
HB 463 puts Georgia in a good position to make even more progress on income and property tax relief in the coming years. Leaders in the state Senate are already committed to fully eliminating the income tax over time. Meanwhile, 2026 saw strong momentum for a meaningful property tax levy limit that would have restricted local government spending to inflation plus population growth, ensuring residents no longer experience out-of-control increases in their property bills to fund unnecessary municipal spending. Such legislation would be model policy for states across the country if lawmakers enact it in 2027.
Momentum to eliminate the income tax for good is picking up steam in Georgia. Crucially, the two frontrunner GOP candidates for Governor in 2026 support the goal of becoming the next zero income tax state. Candidate and current Lieutenant Governor Burt Jones created the ‘Georgia Senate Special Committee on Eliminating Georgia’s Income Tax’ in July 2025. Since then, he has been one of the strongest voices on eliminating the income tax. Candidate Rick Jackson has also repeatedly said on the campaign trail that lowering taxes will be his number one priority. He has endorsed a plan to eliminate the income tax all together, through a gradual reduction of the State’s income tax over the course of eight years. This is a very similar plan to how HB 463 will gradually lower the income tax from 4.99% to 3.99%, through annual reductions.
Georgia is moving in the right direction. Thanks to the leadership of Rep. Shaw Blackmon, Sen. Blake Tillery and Speaker Jon Burns, tax cuts passed this year by the House and Senate will benefit working class familiesthrough reductions to the state’s flat income tax, while drawing more business investment and new residents into the state. However, as more states join the race to zero income tax (including neighboring South Carolina that passed a bill this year to move to zero), Georgia must not rest on its laurels, or risk falling behind.
