Georgia Governor Advocates for Expedited Income Tax Cuts

Georgia 2025 Income Tax Rate

Georgia Governor Brian Kemp is advocating for an accelerated reduction in the state’s income tax rate, aiming to provide financial relief to taxpayers and stimulate economic growth. In his recent State of the State address, Kemp proposed decreasing the flat income tax rate to 5.19 for all earned income in 2025.

This proposal builds upon previous tax reforms. In April 2024, Governor Kemp signed HB 1015 into law, which accelerated the reduction of the income tax rate to 5.39 percent for the 2024 tax year, as well as expedite the planned annual decrease of 0.1 percent until it reaches 4.99 percent.

Georgia 2025 Tax Rebates

In addition to the proposed rate cut, Governor Kemp is advocating for another round of income tax rebates totaling $1 billion. These rebates would provide up to $250 for single filers, $375 for single head-of-household filers and $500 for married couples filing jointly. Similar rebates were issued in 2022 and 2023, each costing about $1.1 billion. Legislators are expected to approve the plan in the current session.

Despite these tax cuts and rebates, Kemp maintains that Georgia’s financial position remains robust. The state has accumulated over $11 billion in unallocated surplus cash, which can be attributed to higher-than-expected revenue collections and conservative budgeting practices. Governor Kemp’s tax initiatives are part of a broader strategy to enhance Georgia’s economic competitiveness and provide relief to residents amid rising costs.

Contact Windham Brannon’s State and Local Tax Practice

Windham Brannon’s State and Local Tax Practice is ready to assist you with personalized tax strategies that help you remain compliant and uncover opportunities to ease your tax burden. For questions or more information about how recent and ongoing tax changes can impact your Georgia state tax situation, contact Tim Clancy, State and Local Tax Practice Leader.