Georgia lawmakers have passed significant tax relief measures, including state income tax cuts and one-time rebates for residents, marking another step in the state’s trend of returning budget surpluses to taxpayers. Governor Brian Kemp is expected to sign the legislation shortly.
1. Income Tax Rebate for 2024 Filers
Georgia residents who filed a state tax return in 2023 and continue to file in 2024 will receive one-time tax rebates of:
2. Income Tax Rate Reduction
Effective January 1, 2025, Georgia’s flat income tax rate will be reduced from 5.39% to 5.19%, with further reductions planned in future years, depending on economic conditions and state revenue.
Despite concerns, the state’s substantial budget surplus has allowed for this tax relief without the need for offsetting spending cuts or new revenue sources.