(The Center Square) – Georgia couples filing jointly would see their income tax eliminated on their first $100,000 beginning with the 2027 tax year under a plan from a Senate study committee.
The proposal, which passed the Special Committee on Eliminating Georgia’s Income Tax on Wednesday, would cut tax for single Georgians on their first $50,000 of income.
The tax break would be funded over six years, with the goal of completely eliminating the income tax by 2032.
It would be funded in increments of $3 billion to cover the $16 billion annually that the income tax brings into the state coffers, according to the proposal. The $3 billion for tax year 2027 would come in part from the state surplus, according to Sen. Blake Tillery, R-Vidalia, chairman of the committee.
“You know we have for years now, cash-funded our bond program,” Tillery said. “We know we’re going to move back to a bond program now as the rates start to fall. If we move back from the cash to bond program that creates the last $1 billion needed for the $3 billion needed in plan one.”
The second year would look at the $30 billion in tax credits to fund the tax cut.
“If we are able to reduce or eliminate just 10% of those special interest credits, then we’re able to give every family in Georgia a tax break and two-thirds of them would see a tax elimination,” Tillery said.
Funding for year three and beyond would rely on a “multiplier effect.”
“We also know that the multiplier effect on income in the hands of families who have it to spend it is much higher than the multiplier effect of putting it out as government spending,” Tillery said.
Sen. Nan Orrock, D-Atlanta, said she was concerned that the tax cut would affect funding for programs. She also questioned how Georgia would handle possible federal budget cuts.
“That was not factored into looking at the financial posture that we’re in as a state,” Orrock said. “We are going to have needs that can be documented, should have been documented about how the cuts in Washington are going to hit the state budget and call on us to look for the resources to replace some of those holes that are going to be created.”
Senate Majority Leader Jason Anavitarte, R-Dallas, called it another step forward to doing what Georgians are “demanding,” which is to “give them their money back to spend it how they want.”
“I hope this is not a moment in time where the Democrats are going to sit here and want to shout affordability in your TV commercials but today we’re going to vote against something that helps blue collar middle class families that are seeking relief,” Anavitarte said.
The plan was approved 6-3; the three Democrats voted against it. It was presented as a recommendation and no bill has been filed.
Georgia lawmakers return to Atlanta next week to begin the 2026 legislative session.
