Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 1001: Income tax; reduce rate of tax
Last action March 31, 2026 · Senate Tabled
House Bill 1001 would set Georgia's flat individual income tax rate at 4.99 percent starting with the 2026 tax year, dropping it directly from 5.39 percent instead of phasing it down gradually as current law requires.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
Discussed in meetings (14)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Ways & Means Committee, February 11, 2026
From 0:15:56 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1001 would lower the income tax rate to 4.99% in 2026, three years earlier than planned. Asked whether the state had met the financial conditions previously required for rate cuts, the sponsor and a governor's office representative said some conditions had been met but others had not. The representative said inflation made a revenue-comparison requirement difficult to meet and argued that conservative budgeting supported proceeding. Another member asked whether the state had covered its expenses after accelerating the previous year's cut despite unmet conditions, and the sponsor agreed. A further member cited roughly $9.5 billion returned to taxpayers and sufficient reserves. The sponsor put the amount at $9.7 billion and agreed that reserves were adequate. The committee approved the bill, recording three opposing votes. No total vote count was stated.
House Rules Committee, February 17, 2026
From 0:37:26 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the governor's proposal would lower the income tax rate to 4.99% three years early. One member questioned whether higher earners would receive greater benefits than median-income residents. The sponsor said tax cuts also help working families. Asked about revenue triggers, the sponsor said some had not been met but argued that the surplus and increased revenues supported proceeding. Another member asked which triggers were unmet; the sponsor offered to discuss details outside the meeting. A different member asked whether the state could afford both this cut and proposed property tax relief. The sponsor said the proposal would not harm other initiatives but did not have cost figures available and said allocations remained under discussion. Supportive members described the bill as reaching an existing target early and argued that the legislature could act independently of automatic triggers. The sponsor agreed with a member's statement that revenues had increased through previous rate reductions and said the triggers were intended as safeguards against revenue declines. No decision followed.
House Rules Committee, February 25, 2026
From 1:44:59 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: A motion was made and seconded to place HB 1001 on the current day's floor calendar. After an objection, the chair held a voice vote and declared that the ayes carried. Both support and opposition were voiced, but no count was stated. No substantive discussion was shown.
House floor session, February 25, 2026 (legislative day 24)
From 1:29:37 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1204
Summary by Georgia Commons: The sponsor said HB 1001 would lower Georgia's income tax rate from 5.19% to 4.99%, reaching the planned rate three years early. The sponsor argued that budget surpluses allowed the state to return money while maintaining education and public-safety spending. A questioning member said the annual cost would be $778 million, with about 73% benefiting the highest-income fifth of Georgians. Opponents argued that most families would receive small savings while the state faced healthcare, housing, foster-care and federal-funding pressures. Another opponent said the bill removed revenue-growth safeguards and could threaten services or shift costs to local property taxes. The minority report favored larger deductions or an earned income tax credit instead. Members debated whether equal percentage reductions were fair when dollar savings differed. The committee chair said existing deductions protected the first $32,000 for a family of four and that reserves and school funding remained supported. The sponsor said the highest-income fifth paid 80% of personal income taxes. During voting, members continued disputing funding needs and affordability. The House passed the bill 106 to 66.
Senate Finance Committee, March 17, 2026
From 0:15:39 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1001 would accelerate the income tax rate reduction to 4.99% in tax year 2026 rather than 2029. The sponsor described it as fulfilling the governor's campaign promise and continuing earlier reductions. A committee member asked what supported the finding that the Department of Revenue could implement the change with existing resources. The sponsor pointed to tax collections exceeding projections and the state's experience with earlier reductions, but provided no additional implementation cost details. Another member credited earlier tax collection changes, reopening the state during COVID and budgeting practices for making the reduction possible. The committee approved the bill with one member opposed.
Senate Rules Committee, March 23, 2026
From 0:13:21 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described HB 1001 as the governor's measure continuing the income tax reduction to a 4.99 percent rate. The bill's identity and location on the committee's paperwork were clarified. No substantive questions or vote followed.
Senate Rules Committee, March 25, 2026
From 0:28:25 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenter requested consideration of HB 1001 on behalf of the governor’s administration and said it would continue income tax reductions by lowering the rate to 4.99%. The chair said it had not made the consideration list and noted that other measures addressed the same subject. No vote was taken.
Senate Rules Committee, March 30, 2026
From 0:44:39 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: A presenting legislator said HB 1001 would reduce the income tax rate to 4.99 percent. No substantive questions followed. A member selected it, and the committee unanimously approved the calendar containing it.
Senate floor session, March 31, 2026 (legislative day 39, part 1)
From 1:31:04 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)
Summary by Georgia Commons: The majority leader included HB 1001 in a request to prevent floor amendments to ten bills. The clerk described a reduction in the income tax rate, without stating a rate. After an objection, the Senate approved the group motion 33-15. The transcript shows no further consideration of this bill.
- Read aloud: House floor session, January 27, 2026 (legislative day 7), 0:32:15
- Read aloud: House floor session, January 28, 2026 (legislative day 8), 0:44:14
- Read aloud: Senate floor session, February 26, 2026 (legislative day 25), 0:25:48
- Read aloud: Senate floor session, March 18, 2026 (legislative day 33), 0:30:44
- Read aloud: Senate floor session, March 19, 2026 (legislative day 34), 0:45:10
Status timeline
- Senate Tabled (Senate)
- Senate Engrossed (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
Show full history (11 actions)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Will Wade (R, HD-9)
- Matthew Gambill (R, HD-15)
- Devan Seabaugh (R, HD-34)
- Soo Hong (R, HD-103)
- Shaw Blackmon (R, HD-146)
- Bruce Williamson (R, HD-112)
- Bo Hatchett (R, SD-50)
Votes
- House voteFebruary 25, 2026
106 yea, 66 nay (2 not voting, 3 excused)
- Senate voteMarch 31, 2026
33 yea, 15 nay (2 not voting, 4 excused)
- Senate voteMarch 31, 2026
39 yea, 10 nay (2 not voting, 3 excused)
Topics
- income tax
- tax rate cuts
- state revenue
- personal finance