HB 1001: Income tax; reduce rate of tax

Georgia currently taxes individual income at a flat rate that was set to fall gradually over several years, from 5.39 percent down to 4.99 percent, with each annual step subject to delay if state revenue growth, prior collections, or the state's reserve fund did not meet certain thresholds. House Bill 1001 removes that gradual, conditional schedule and instead sets the rate at 4.99 percent immediately for tax years beginning on or after January 1, 2026. The bill amends O.C.G.A. § 48-7-20, which governs individual income tax rates, and strikes the paragraphs that let the Office of Planning and Budget delay rate cuts based on revenue estimates or the state's Revenue Shortfall Reserve. The change would take effect July 1, 2026, and apply to all taxable years starting on or after January 1, 2026.

• Sets Georgia's flat individual income tax rate at 4.99 percent for tax years beginning on or after January 1, 2026, instead of the previous gradual step-down schedule.
• Repeals the annual 0.10 percent incremental rate reduction process and the conditions that could delay those reductions.
• Eliminates the requirement that the Office of Planning and Budget assess revenue conditions each December to decide whether to delay a scheduled rate cut.
• Removes the reporting requirement that sent the Office of Planning and Budget's determinations to legislative leaders and committee chairs each year.
• Sets the law's effective date as July 1, 2026, applying to taxable years starting on or after January 1, 2026.

Georgia individual income taxpayers, whose tax rate would go directly to 4.99 percent rather than declining gradually; the Georgia Department of Revenue, which administers withholding and collections; and the Office of Planning and Budget, which currently must evaluate whether to delay scheduled rate cuts.

Georgians filing individual income taxes would see the lower 4.99 percent rate take effect sooner than under the prior phased-in schedule, which could have taken several more years and could have been delayed if state revenue growth slowed or reserve funds fell short.

• Section 1 amends O.C.G.A. § 48-7-20(a.1) to change the tax rate figure from 5.19 percent (soon to be corrected context of 5.39 percent flat rate) to 4.99 percent, effective for tax years beginning January 1, 2026.
• Section 1 strikes the language providing for annual 0.10 percent rate reductions that would have continued until reaching 4.99 percent.
• Section 1 removes the three delay conditions tied to the Governor's revenue estimate, prior fiscal year collections, and the Revenue Shortfall Reserve balance.
• Section 1 eliminates the Office of Planning and Budget's annual reporting duty to the Speaker, the Senate President, and legislative finance committees regarding rate-reduction delays.
• Section 2 sets the effective date as July 1, 2026, applying to all taxable years beginning on or after January 1, 2026.
• Section 3 repeals all laws and parts of laws in conflict with the Act.

1. 2026-03-31Senate Tabled (Senate)
2. 2026-03-31Senate Engrossed (Senate)
3. 2026-03-19Senate Read Second Time (Senate)
4. 2026-03-18Senate Committee Favorably Reported (Senate)
5. 2026-02-26Senate Read and Referred (Senate)
6. 2026-02-25House Passed/Adopted (House)
7. 2026-02-25House Third Readers (House)
8. 2026-02-11House Committee Favorably Reported (House)

• Will Wade (R, HD-009)Primary sponsor
• Matthew Gambill (R, HD-015)
• Devan Seabaugh (R, HD-034)
• Soo Hong (R, HD-103)
• Shaw Blackmon (R, HD-146)
• Bruce Williamson (R, HD-112)
• Bo Hatchett (R, SD-050)

1. PassedHouse voteFebruary 25, 2026

   106 yea, 66 nay (2 not voting, 3 absent)

   Passage: House Vote #552

2. PassedSenate voteMarch 31, 2026

   33 yea, 15 nay (2 not voting, 4 absent)

   Motion To Engross: Hb 52, Hb 248, Hb 963, Hb 964, Hb 1001, Hb 1077, Hb 1116, Hb 1129, Hb 1132, Hb 1209: Senate Vote #876

3. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

• income tax
• tax rate cuts
• state revenue
• personal finance