Governor Brian Kemp signed legislation Tuesday at a ceremony in Cobb County that will deliver over $1 billion in tax relief to Georgia taxpayers. This relief includes accelerating the largest state income tax cut in state history and issuing a third, one-time tax refund.
Governor Kemp signed HB 111 and HB 112 alongside First Lady Marty Kemp, members of the Georgia General Assembly, and state and local leaders.
HB 111, sponsored by Representative Soo Hong and others, accelerates the income tax cut first passed in 2022, reducing the state income tax rate by another 20 basis points. This will decrease the total income tax rate to 5.19%, down 56 basis points from the original rate of 5.75%. This cut is projected to save Georgians another $880 million on their tax returns next year.
HB 112, sponsored by Representative Lauren McDonald III and others, provides for a one-time special tax refund of up to $500 per Georgia taxpayer household. Georgians who file jointly will receive $500, single filers will receive $250, and heads of household will receive $375.
“Here in Georgia, we safeguard every dollar of taxpayer money, because we know it belongs to the people, not the government,” Governor Kemp said at the ceremony. He added that the tax relief is a result of conservative budgeting and a commitment to returning money to taxpayers.
Lieutenant Governor Burt Jones echoed these remarks, emphasizing the importance of lightening the tax burden on Georgians and job creators. He called the tax cuts “a priority” and a step towards eliminating the state income tax. He added, “With Governor Kemp’s leadership, Georgia continues to serve as an example for the rest of the nation on how to reduce taxes and give more than a billion dollars back to our citizens, while having a healthy reserve and fiscally sound budget. These bills becoming law today bring us one step closer to eliminating the state income tax, a priority I have always been a proponent of. We are able to do this because we are focused on a stable and prosperous future for all Georgians, while making financial choices that will ensure Georgia’s ongoing viability and financial stability. We will continue to make this a priority, and I look forward to seeing more of this great work in the future.”
Speaker Jon Burns said the Georgia House is proud to have championed this legislation, which is important in providing financial relief to families across the state.
Governor Kemp also noted that the General Assembly ratified his suspension of the state gas tax following Hurricane Helene, bringing additional relief to families and businesses dealing with the effects of the storm. He thanks Lieutenant Governor Burt Jones, Speaker Jon Burns, OPB Director Rick Dunn, and the members of the General Assembly for passing these important pieces of legislation.
