Georgia Sine Die 2026: Budget, state income tax reduction passes

Georgia lawmakers approved a sweeping tax relief package before the legislative session ended, lowering the state income tax rate and increasing deductions for millions of residents.

State income tax

What we know:

The bill reduces the state income tax rate from 5.19% to 4.99%, with a plan to gradually bring it down to 3.99% over the next eight years, as long as state revenues can support the cuts.

Lawmakers also increased the standard deduction from $12,000 to $15,000 for single filers and from $24,000 to $30,000 for married couples. Those amounts are expected to continue rising to $18,000 for individuals and $36,000 for couples in the coming years.

Additional provisions in the bill include raising the retirement income deduction for Georgians age 65 and older from $65,000 to $70,000. The legislation also exempts certain earnings — including some tips and overtime — from state income taxes.

Supporters say the measure will provide both immediate relief and long-term savings for taxpayers across the state.

Property tax cap

What we know:

The session also addressed property tax concerns, though lawmakers acknowledged the final measure was limited. The approved bill caps assessment value increases but does not cap tax rates — something House leaders said they hope to revisit next year.

Election overhaul

What we know:

Meanwhile, a proposal to overhaul Georgia’s voting system failed to pass before the session ended. Lawmakers said the issue could return in a future session, and there is a possibility the governor could call a special session to address it.

The Source: The information in this story was gathered from FOX 5 reporters Deidra Dukes and Christopher King and floor proceedings from the Georgia House of Representatives and State Senate.

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