The House amendment to the substitute to House Bill 463, AM 59 0036, reduces the state income tax, beginning on January 1, 2027, from 4.99% to 3.99% in increments of 0.125%. The bill also raises the personal income tax exemption from $4,000 to $5,000 for each dependent. Beginning on January 1, 2027, the personal income tax exemption will increase by $125 annually until the exemption reaches $6,000.

The bill also raises income tax deductions for married couples filing jointly from $24,000 to $30,000. Beginning on January 1, 2027, the deduction will increase by $750 annually until the deduction reaches $36,000. For single taxpayers or married taxpayers filing separately, the the bill raises the income tax deduction from $12,000 to $15,000. Beginning on January 1, 2027, the deduction will increase by $375 annually until the deducation reaches $18,000. All increases in deductions of state income tax would be delayed if certain state revenue estimates and triggers are not met.

House Bill 463 also raises deductions for retirement income and overtime compensation with provisions for cash tips. The bill also limits the Revenue Shortfall Reserve to 20% of the previous fiscal year's net revenue. Any revenue surplus funds in excess of 20% may be used for tax relief.

The bill also eliminates the sales tax exemption for machinery and equipment used for reducing or eliminating air and water pollution.

Legislative Tracking

Georgia Municipal Association

Tagged Bills - Income Taxes