Amid what many have called an affordability crisis, Georgia state lawmakers have introduced and passed a number of bills to reduce or return taxes to Georgians.
At the start of the 2026 legislative session, Republicans swung big with proposals to drastically cut income and property taxes.
As they moved through the legislative process, the most dramatic measures failed to garner enough support, leaving behind more incremental changes.
Here are the major tax bills that have passed out of the Georgia legislature this year. Some still need Gov. Brian Kemp’s signature, while others have already become law.
One-time tax rebate for Georgians
Last month, Kemp signed a one-time tax rebate totaling more than $1 billion that would return $250 to single filers, $375 to heads of household and $500 to joint filers.
“This measure doesn’t pick winners and losers. It helps all Georgia taxpayers,” Kemp said at the signing.
To receive this rebate, you need to have filed your tax return for 2024 and file your 2025 taxes. People who have filed those returns could see the money in a few weeks.
Lower Georgia income tax rate
Georgians could be paying less on their income taxes this year. The legislature passed House Bill 463, which accelerates the current 0.10% annual decrease on the flat personal income tax rate. Kemp still needs to sign it into law.
The current annual rate decrease hinges on state revenue reaching a certain level, but the state did not meet those revenue conditions for 2026.
HB 463 decreases the current 5.19% rate directly to 4.99% for 2026, then provides for annual decreases of 0.125% starting in 2027 until the personal income tax rate reaches 3.99%. The bill also:
- Allows $1,750 in overtime compensation and $1,750 in cash tips to be tax-free from 2026 to 2028
- Makes more of Georgians’ income tax-free by raising the standard deduction for single filers from $12,000 to $15,000, then increasing it by $375 every year until it reaches $18,000
- Raises the standard deduction for joint filers from $24,000 to $30,000, then increases by $750 every year starting in 2027 until it reaches $36,000
- Increases deductions for each dependent from $4,000 to $5,000 this year, then increases it by $125 starting in 2027 until it reaches $6,000
Larger income tax cuts did not pass
Nevertheless, this proposal is just one part of a package that Senate Republicans were hoping to pass.
Lt. Gov. Burt Jones appointed members to a Senate special committee to recommend ways to reduce the personal income tax to zero, to remain competitive with neighbors like Florida and Texas.
The committee, headed by state Sen. Blake Tillery, R-Vidalia, recommended a plan to eliminate the personal income tax by 2032, first lowering the current income tax rate to 4.99% in 2026, then to 3.99% by 2029 and finally to 0% by 2032.
The recommended plan also included a measure to make tax-free the first $50,000 for individuals and the first $100,000 for joint filers. However, the governor notably did not indicate that he was throwing his support behind the complete elimination of state personal income taxes, only the immediate decrease to an income tax rate of 4.99%.
The proposals that made it into legislation this year also didn’t include eliminating income taxes, although Tillery said during the session that it is still a goal for the Senate.
“You’ve heard everyone across the hall say, ‘Be prudent on these things. Be prudent,’” Tillery said. “Well, if you want us to be prudent, we’ll be prudent. But the plan from the Senate is still to be at zero in six years.”
One proposal from Tillery would have raised the standard deductions to $50,000 and $100,000 deductions, sunsetted all income tax credits by 2032 and put a stop to new sales and use tax exemptions for data centers. It did not make it to the finish line.
This proposal, which Tillery introduced in SB 476 and became a substitute for HB 134, was Tillery’s preferred legislation, but the House decided to pass the more incremental HB 463, which contained the language of SB 477, also authored by Tillery.
However, HB 463 still included repeals to some corporate tax credits that Tillery wanted to push.
“It is not exactly what we wanted, but it moves this ball forward,” Tillery said on the last day of the legislative session. “Friends, we are not to stand here and allow perfect to be the enemy of good. We are here to move the ball forward for Georgians, to give them income tax relief during this time of high inflation.”
Gas tax suspension
The governor signed legislation to suspend the state motor fuel tax for 60 days as gas prices continue to rise following the outbreak of the Iran war.
The suspension is now in effect, and it lasts from March 20 through May 19. During this time, Georgia drivers can expect to save around 33 cents per gallon of gasoline and 37 cents per gallon of diesel.
The average price per gallon for regular gas in Georgia has risen from $3.217 to $3.733 in a month. Nationally, that average is higher; average regular gas prices have risen from $3.413 to $4.14 in a month.
Despite the suspension, Georgia drivers are still reporting frustration with high gas prices.
Mandatory property tax inflation cap, new local sales tax to lower property tax
While Senate Republicans were focused on income taxes, House Republicans were pushing for property tax changes.
If signed into law, Senate Bill 33 would require all local governments and school districts to cap their homestead property tax increases to not exceed the rate of inflation.
In 2024, Georgia voters approved a state constitutional amendment to create a statewide homestead property tax exemption that would allow taxes on all homeowners’ primary property in the state to only increase with inflation. However, this measure, otherwise known as the HB 581 exemption, also allowed local governments and school districts to opt out of the exemption and continue levying property taxes as normal.
SB 33 would prevent them from opting out.
The bill would also create a “Local Homestead Option Sales Tax,” or LHOST, a 1% local sales and use tax that local governments can use to fund reductions in local property taxes.
Residents would first need a majority vote in a local referendum to approve a homestead tax exemption. This homestead exemption would be in addition to any existing homestead exemptions.
Then, a local government would levy an LHOST to pay for that exemption. An LHOST can last for as long as the homestead exemption lasts for a maximum of ten years. A local government can renew an LHOST by going through the same steps it did the first time.
A local government would generally be able to impose an LHOST in addition to other local sales and use taxes.
Elimination of property taxes fails to pass
The original version of this bill in House Bill 1116, which was a major legislative priority for House Speaker Jon Burns, created a path to eventually eliminate all homestead property taxes imposed by local governments by 2032 through raising sales taxes.
“This historic tax relief would be delivering on our commitment to making life more affordable for our neighbors across this entire state of Georgia, starting where it matters most — at home,” Burns said upon the announcement of the legislation.
However, the measure required a constitutional amendment, and it didn’t receive the two-thirds vote from lawmakers that it needed to appear on the Georgia ballot.
An updated version of the bill took out the elimination of homestead taxes and replaced it with the LHOST and a proposal to cap local property tax increases at 3% or the rate of inflation based on the Consumer Price Index, whichever is greater.
The measure faced pushback from Democrats.
“This bill creates the weirdest new sales tax on the planet in order to pay homeowners for property tax cuts that local school systems cannot afford,” said state Sen. Josh McLaurin, D-Atlanta, during a floor debate for HB 1116.
After HB 1116 failed to pass the Senate on Sine Die, the Georgia legislature passed a last-minute amendment to SB 33, a bill related to hemp farming that replaced it with the LHOST measure without the 3% cap on property tax increases. However, it included a different measure to eliminate local governments’ ability to opt out of the HB 581 statewide homestead exemption.
Property tax controversy lingers
Democratic state Rep. Scott Holcomb has penned a letter to the governor raising constitutional concerns over SB 33.
“Our Constitution is crystal clear that all bills for raising revenue or appropriating money shall originate in the House of Representatives,” Holcomb said in an interview with WABE. “So the fact that this is a Senate bill means that it is unconstitutional.”
Matt Brass, who presented the final amendment to SB 33, said in a statement that SB 33 contains the exact same language as HB 1116, “omitting the sections that lead to HB 1116 losing on the Senate floor.”
The governor’s office did not indicate whether the governor would sign or veto the bill.
“All legislation that receives final passage from the General Assembly undergoes a thorough review process and an update will be provided at the conclusion of that process,” a spokesperson said.
This story is available through a news partnership with WABE, Atlanta’s National Public Radio affiliate.