Georgia lawmakers have approved a plan to cut the state’s income tax rate, but a broader effort to overhaul property taxes fell short before the end of the legislative session.
Georgia’s net tax collections totaled $2.12 billion in February, a slight decrease of 0.1% compared to February of last year.
Even with that small monthly decline, the state remains ahead overall for the fiscal year. Through the first eight months of the budget year, Georgia has collected about $21.88 billion, an increase of 1.6% over the same period a year ago.
The biggest drop in February came from individual income tax collections, which fell 4.1%. Higher tax refunds were a major factor in that decline, even as withholding payments showed a slight increase.
At the same time, sales tax collections moved higher, providing one of the brighter spots in the report. Motor fuel tax revenues also increased from the same month last year.
Meanwhile, corporate income tax collections posted a sharp decline for the month. The state also reported smaller decreases in motor vehicle tag, title and fee collections.
Despite the mixed results in February, Georgia’s overall revenue picture remains positive for the year so far, with collections continuing to run ahead of last fiscal year’s pace.
The Georgia Senate on Friday approved its version of the $42.3 billion amended state budget, keeping major tax rebates for Georgians while increasing funding for mental health services and rural infrastructure.
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 Georgia House of Representatives completed a busy fourth week of the 2026 legislative session as lawmakers passed House Bill 973, the House’s version of the Amended Fiscal Year 2026 budget. The budget, which passed with bipartisan support, is built on a revised $42.3 billion revenue estimate and includes $4.5 billion in surplus and new funding to support priorities through June 30, 2026.
Key investments in the amended budget include property tax relief through the Homeowner Tax Relief Grant program, education funding for K–12 schools and higher education, and pay supplements for teachers, school staff, and early learning educators. The House also approved funding for HOPE and the new need-based DREAMS Scholarship, along with investments in school safety, mental health services, and workforce readiness initiatives.
The budget further prioritizes public safety, healthcare, and infrastructure, with funding for prison security upgrades, behavioral health facilities, rural healthcare access, and major transportation projects, including road resurfacing and rural bridge repairs. Lawmakers also heard the annual State of the Judiciary Address from Chief Justice Nels S.D. Peterson during the week.
In addition to the budget, the House passed several bills addressing issues such as newborn safety, feral hog control, rural eye care access, veterans’ burial eligibility, and early literacy initiatives. With the amended budget now moving to the Senate, the House will soon begin work on the Fiscal Year 2027 budget as the session continues.
See the complete legislative report below:
Governor Brian Kemp used his final State of the State address last week to roll out his recommendations for Georgia’s amended Fiscal Year 2026 budget and the Fiscal Year 2027 budget, calling for major investments aimed at affordability, student opportunity, workforce development, and public higher education.
A Georgia state Senate committee tasked with charting a path to eliminate the state income tax is set to meet Wednesday, Jan. 7, to adopt its final report — a move that could tee up major tax legislation when lawmakers return to Atlanta for the 2026 legislative session later this month.
Georgia Tax Collections Edge Up in November, But Storm-Related Fuel Tax Changes Cloud the Comparison
Georgia’s net tax collections in November totaled nearly $2.4 billion, an increase of $22.4 million (0.9%) compared to the same month in FY 2025, when the state collected about $2.38 billion. For the fiscal year to date, Georgia’s net tax revenues reached nearly $13.28 billion, up $262.7 million (2.0%) from roughly $13.02 billion collected through November 2024.