Georgia – This week, Georgia’s Governor Brian P. Kemp, along with First Lady Marty Kemp, Lieutenant Governor Burt Jones, Speaker Jon Burns, and other lawmakers, shared their goal to pass a new bill in the next session of the General Assembly. This bill aims to speed up the reduction of Georgia’s state income tax rate.
The proposed bill will change HB 1437, decreasing the income tax rate by 0.10% each year starting from 2025. The goal is to eventually bring it down to 4.99%.
With this faster reduction, the tax rate for 2024 will be 5.39% instead of the previously planned 5.49%. This change means a 0.36% drop from the 2023 rate of 5.75%.
Governor Kemp mentioned that when he approved a significant tax cut in 2022, it was done responsibly, aiming for long-term benefits. He credits careful budget management and a strong economy for making it possible to move the plan forward quicker. Kemp expressed his eagerness to work with the legislature to provide more financial relief to families affected by the current economic policies under Biden leadership.
The Office of Planning and Budget estimates savings for Georgia taxpayers of approximately $1.1 billion in calendar year 2024 as a result of the tax cut acceleration and the 26 basis-points reduction provided in HB 1437.
“Today’s announcement is a great step toward ultimately eliminating Georgia’s income tax, a top priority of mine,” Lt. Gov. Burt Jones said in the release.
“I commend Governor Kemp and members of the legislature for strategically putting our state in the position to give more money back to every Georgian. Along with the announcement today and the work of the Joint Tax Review Panel, I am confident we will identify additional ways to improve our tax structure and keep Georgia the best place to live and work.”
“As conservatives, we’re guided by the principle that tax dollars belong to those who earned them in the first place and that low taxes encourage economic growth,” House Speaker Jon Burns added.
“This approach has resulted in Georgians enjoying not only the No. 1 business climate but also one of the lowest per-capita tax burdens in the country. Today, conservative leadership is once again lowering taxes on working Georgians so they can support their families at a time when inflation has eroded the buying power of their paychecks.”