Georgia Governor Brian Kemp officially signed a series of major tax relief bills into law on April 15, providing more than $1 billion in combined relief for individuals and businesses across the state. The legislation, which included House Bills 111, 112, 223 and Senate Bill 141, represent a continued push by state lawmakers to reduce tax burdens, streamline the tax system and assist those affected by natural disasters.
Speaking at the Georgia Capitol during the signing ceremony on Tuesday, Gov. Kemp emphasized the significance of the package, stating that the bills are meant to illustrate a commitment to put money back into the pockets of Georgia taxpayers.
HB 111: Accelerated Income Tax Rate Reduction
House Bill 111 accelerates the implementation of Georgia’s planned income tax reductions. Under this law, the state income tax rate for both individuals and corporations will be lowered from 5.39 percent to 5.19 percent for the 2025 tax year. The bill continues the downward trajectory outlined in prior legislation, decreasing the rate by 0.10 percent annually until it reaches 4.99 percent. This move is expected to significantly reduce the tax burden on Georgia households and businesses over the coming years.
HB 112: One-Time Income Tax Rebates
House Bill 112 provides a one-time income tax rebate for individual Georgians who paid state income taxes in both the 2023 and 2024 tax years. Eligible taxpayers can expect rebates of up to $250 for single filers and $500 for joint filers. State leaders noted that this relief measure is designed to offer immediate financial support to residents coping with inflation and rising living costs.
HB 223: Extended Time for Tax Appeals
House Bill 223 extends the window for Georgia taxpayers to respond to proposed tax assessments or refund denials. Under the new law, the protest and appeal period is extended from 30 to 45 days. This change applies to most final assessments and provides taxpayers with additional time to review, prepare and file appeals with either the Georgia Tax Tribunal or their local superior court.
SB 141: Disaster Relief and Tax Exclusions
Senate Bill 141 offers targeted tax relief to those affected by natural disasters. The bill excludes from Georgia taxable income any payments received through federal disaster relief programs or from the U.S. Department of Agriculture related to Hurricane Helene, which occurred in September 2024. This tax exclusion applies to relief grants received between 2025 and 2029, meaning that impacted farmers and residents can take advantage of benefits from recovery funds without additional state tax burdens.
For more information, contact Tim Clancy, Windham Brannon’s State and Local Tax Practice Leader.
