Governor Brian Kemp has unveiled his plan to lower state income taxes ahead of a scheduled cut in 2025.
On Monday, Kemp, joined by Lt. Gov. Burt Jones and other state lawmakers, announced he would ask the state legislature to pass legislation in the upcoming regular session of the General Assembly that will accelerate a decrease in the state individual income tax rate.
The proposed legislation would amend House Bill (HB) 1437, which provides for a step down of 10 basis points in the income tax rate, starting in 2025 and for each taxable year after until the rate reaches 4.99%. By accelerating the reduction, the rate for tax year 2024 will be 5.39%, rather than the 5.49% set by HB 1437. This will mark a cut of 36 basis points from this year’s rate of 5.75%.
If lawmakers back the plan announced Monday, that final rate could be reached in 2028 instead of 2029, as originally planned.
“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,” said Governor Brian Kemp. “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.”
The Office of Planning and Budget estimates Georgia taxpayers would save approximately $1.1 billion next year as a result of the tax cut acceleration.
Lt. Gov. Jones said the governor’s announcement “is a great step toward ultimately eliminating Georgia’s income tax,” which is a top priority of his.
