A series of tax-cutting bills passed by the Georgia Legislature have been signed into law by Gov. Brian Kemp (R).
Kemp said the legislation will lower the tax burden on Augustans and all Georgians, while working to secure the state’s reputation as a top place to do business. Kemp said the cuts were possible because of budgeting conservatively.
“That approach has allowed us to return billions of dollars to taxpayers, and the legislation I signed today will keep that momentum going as we further lower our state income tax rate, deliver on meaningful property tax relief, and ensure job creators have the opportunity to grow and thrive in the Peach State,” he said.
One piece of legislation, HB 463, lowers the state income tax from 5.19% to 4.99%. The new rate was effective Jan. 1, 2026. It also calls for continuing to lower the rate to 3.99%. It will save taxpayers an estimated $2.9 billion a year.
Also signed into law was SB 33. It addresses property tax reform by creating a new Local Homestead Option Sales Tax (LHOST). The measure was a priority for House Speaker Jon Burns (R).
“As we all know, property tax valuations have skyrocketed in every corner of this state, millage rates have remained the same or even increased, in some cases, placing a significant financial strain on families, homeowners, and retirees living on fixed incomes,” said Burns. “This year, the House was proud to lead the effort to cap assessment increases at a 3% rate, putting an end to unexpected property tax hikes.”
Kemp said the tax cut legislation was a direct result of citizens asking for relief, particularly property tax relief. He said the work started with the amended budget he signed earlier this year.
“So, when you talk about affordability, and you know what we’re dealing with right now, we’ve got rebate checks going back, we have passed and have the money in the budget for one-time property tax relief,” said Kemp.
“The bills being signed into law today help every family and business in Georgia,” added Lt. Gov. Burt Jones. “We are also supporting school choice and parents who want to decide on what’s best for their child’s educational needs by expanding the GOAL scholarship tax credit.”
In all, the governor signed into law nine bills that address economic concerns. The news release from the governor’s office lists the others as:
- HB 1129 creates guardrails for state-designated enterprise zones.
- HB 1185 modernizes complex corporate litigation policies and revises some standards around the Georgia Statewide Business Court.
- SB 111 expands the eligibility criteria for rural hospital organizations to include rural freestanding emergency departments and lowers indigent care thresholds, ultimately broadening access to tax-credit-eligible contributions for rural healthcare providers in Georgia.
- HB 328 increases the tax credit for student scholarship organizations (SSO), expands student eligibility, and increases accountability measures for program providers.
- HB 445 expands the right of business owners in Georgia to appeal tax reassessments of certain high-value tangible personal property to a hearing officer and establishes new qualifications and procedures for officers handling appeals.
- HB 987 codifies a voluntary framework for independent contractors to receive portable benefits through dedicated accounts, allowing contributions without affecting their employment classification.
- HB 1209, sponsored by Representative Ron Stephens, establishes a limited sales and use tax exemption for construction materials used in specific developments near certain state-owned convention facilities.
This marks one of Kemp’s final bill-signing ceremonies as he concludes his two terms in office.
