---
title: HB 1001. Income tax; reduce rate of tax
collection: bills
id: 2025-2026/hb1001
cite_as: HB 1001, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1001
md_url: https://georgiacommons.org/bills/2025-2026/hb1001.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1001/text
source_url: https://www.legis.ga.gov/legislation/72294
date: 2026-03-31
status: engrossed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb1000.md
next: https://georgiacommons.org/bills/2025-2026/hb1002.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 1072
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1001.md?full=1
bill_number: HB 1001
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-25
last_action: Senate Tabled
sponsors:
  - Will Wade
  - Matthew Gambill
  - Devan Seabaugh
  - Soo Hong
  - Shaw Blackmon
  - Bruce Williamson
  - Bo Hatchett
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1001/2025
upstream_id: 2085226
summaries_model: claude-sonnet-5
topic_tags:
  - income tax
  - tax rate cuts
  - state revenue
  - personal finance
---

# HB 1001. Income tax; reduce rate of tax

## Text

House Bill 1001
By: Representatives Wade of the 9th, Gambill of the 15th, Seabaugh of the 34th, Hong of the
103rd, Blackmon of the 146th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to the imposition, rate, computation, exemptions, and credits relative to income
taxes, so as to reduce the rate of the tax; to provide for related matters; to provide for an
effective date and applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended
by revising subsection (a.1) of Code Section 48-7-20, relating to individual tax rates, credit
for withholding and other payments, and applicability to estates and trusts, as follows:
"(a.1)(1) On and after January 1, <del>2025</del> <ins>2026,</ins> the tax imposed pursuant to subsection (a)
of this Code section shall be <del>5.19</del> <ins>4.99</ins> percent for taxable years beginning on or after
January 1, <del>2025</del> <ins>2026;</ins> <del>provided, however, that such rate shall be reduced by 0.10 percent
annually beginning on January 1, 2026, until the rate reaches 4.99 percent, provided that
such annual reductions in the tax rate shall be subject to delays as provided in
paragraph (2) of this subsection.
</del>
<del>(2) Each prospective annual reduction in the tax rate that would otherwise occur as
provided in paragraph (1) of this subsection shall be delayed by one year for each year
that any of the following are true as of December 1:
(A) The Governor's revenue estimate for the succeeding fiscal year is not at least 3
percent above the Governor's revenue estimate for the present fiscal year;
(B) The prior fiscal year's net revenue collection was not higher than each of the
preceding three fiscal years' net tax revenue collection; or
(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not
contain a sum that exceeds the amount of the decrease in state revenue projected to
occur as a result of the prospective reduction in the tax rates set to occur the following
year.
(3) The Office of Planning and Budget shall make the determinations necessary to
implement the provisions of paragraph (2) of this subsection and shall report its
determinations by December 1 of each year to the department, the Speaker of the House
of Representatives, the President of the Senate, and the chairpersons of the House
Appropriations Committee, the House Ways and Means Committee, the Senate
Appropriations Committee, and the Senate Finance Committee. This paragraph shall not
be applicable after the final reduction to the rate of 4.99 percent occurs."
</del> SECTION 2.
This Act shall become effective on July 1, 2026, and shall apply to all taxable years
beginning on or after January 1, 2026.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

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.

### Plain-language summary

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 it 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.

## Status

- Status: Engrossed (2026-02-25)
- Last action: Senate Tabled (2026-03-31)
- Sponsors: Will Wade, Matthew Gambill, Devan Seabaugh, Soo Hong, Shaw Blackmon, Bruce Williamson, Bo Hatchett
- Official page: https://www.legis.ga.gov/legislation/72294

> The history, votes, and amendments (1,072 characters) are at https://georgiacommons.org/bills/2025-2026/hb1001.md?full=1