A group of mostly Republican Georgia state senators is moving quickly to advance legislation that would reduce the state’s personal income tax, marking the first step in a long-term plan to eliminate the tax entirely by 2032.

The effort follows recommendations from a special state Senate committee appointed last summer by Lt. Gov. Burt Jones, with Sen. Blake Tillery of Vidalia chairing the panel and sponsoring the legislation. Supporters argue Georgia risks falling behind other Southern states that have already moved toward zero personal income tax.

“Georgia would be an anomaly if we don’t move in this direction,” Tillery said during a Senate Finance Committee hearing on Monday.

The timing is politically significant, as Jones is running for governor and Tillery is seeking the lieutenant governor’s office, with both making income tax elimination a central campaign issue.

What the Bills Would Do

The Senate Finance Committee approved four related bills, including Senate Bills 476 and 477, along with substitute versions of House Bills 463 and 134.

  • SB 477 would gradually reduce Georgia’s flat income tax rate from 5.19% in 2026 to 4.99%, then 4.49% in 2027, and 3.99% beginning in 2028, contingent on revenue benchmarks being met. It would also lower the corporate income tax rate to 4.99% in 2026.

  • SB 476, described by Tillery as the more aggressive option, would significantly increase income deductions to $50,000 for individual filers and $100,000 for joint filers, up from the current $12,000 and $24,000.

To offset the revenue loss, SB 476 would phase out all state income tax credits by 2032, including credits for insurance companies, banks, electric vehicles and chargers, port traffic increases, agribusiness, and certain COVID-era incentives. The bill would also halt new sales tax exemptions for data centers.

What Comes Next

The House bill substitutions were used to comply with a constitutional requirement that revenue measures originate in the House. All four bills are now eligible for a full vote in the Georgia Senate before moving to the House for further consideration.

Democrats have raised concerns that the reductions could threaten funding for public services and disproportionately benefit higher-income earners.

“I think the government can do a better job of creating infrastructure to deliver services that families all across the state need than an individual can with their tax cuts,” said Sen. Nan Orrock, D-Atlanta.

Despite potential opposition, Tillery said the long-term goal remains unchanged.

“The plan from the Senate is still to be at zero in six years,” he said, noting that additional legislation would be required to fully eliminate the tax.