ATLANTA — Gov. Brian Kemp on Monday morning announced a plan to accelerate the state's income tax cut with new legislation in the coming Georgia General Assembly session.
The cut originally passed in 2022 aimed to create a flat state income tax of 5.49%, starting in 2024, and decrease each year until it gets down to 4.9% by 2029.
The legislation for the 2024 session, if passed and signed by Gov. Kemp, would reduce the 2024 rate to 5.39%. The 2022 tax cut will bring the top Georgia rate down from 5.75%.
"When I signed the largest income tax cut in state history in 2022, I did so with the understanding we would deliver on this promise in a responsible way," Gov. Kemp said in a statement. "Now, thanks to our conservative budgeting and strong state economy built on business-friendly policies, we are well-positioned to move the timeline up and put more money where it belongs -- back into Georgians' pockets. I look forward to working with our partners in the legislature to bring this further relief to families still burdened by Bidenomics."
The 2022 legislation also increases standard exemptions covering amounts someone could earn before beginning to pay state income tax.
For example, a taxpayer would get a $12,000 exemption and married couples would eventually get a $24,000 exemption, with allowances to deduct $3,000 for each child or dependent.
The 2022 law did include "protections" that would pause the rolling cuts any year state revenue doesn't grow by 3%, is lower than the past five years, or the state doesn't have enough money in its savings account.
According to the Governor's Office, the state Office of Planning and Budget estimates the proposed tax cut acceleration will result in $1.1 billion total remaining with Georgia taxpayers (some of which will already remain with taxpayers as a result of the cut to 5.39% already signed into law).
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