--- title: SB 387. Revenue and Taxation; state income tax in its entirety; repeal collection: bills id: 2025-2026/sb387 cite_as: SB 387, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb387 md_url: https://georgiacommons.org/bills/2025-2026/sb387.md text_url: https://georgiacommons.org/bills/2025-2026/sb387/text source_url: https://www.legis.ga.gov/legislation/72166 date: 2026-01-13 status: introduced 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/sb386.md next: https://georgiacommons.org/bills/2025-2026/sb388.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 95 omitted_url: https://georgiacommons.org/bills/2025-2026/sb387.md?full=1 bill_number: SB 387 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2026-01-12 last_action: Senate Read and Referred sponsors: - Colton Moore text_version: Introduced has_text: true legiscan_url: https://legiscan.com/GA/bill/SB387/2025 upstream_id: 2071977 summaries_model: claude-sonnet-5 topic_tags: - income tax repeal - state taxes - tax credits - Georgia revenue --- # SB 387. Revenue and Taxation; state income tax in its entirety; repeal ## Text Senate Bill 387 By: Senator Moore of the 53rd A BILL TO BE ENTITLED AN ACT To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, so as to repeal the state income tax in its entirety; to repeal various income tax credits; 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. Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended by repealing in its entirety Chapter 7, relating to income taxes. SECTION 2. Said title is further amended by adding a new Chapter 7 to read as follows: "CHAPTER 7 48-7-1. For taxable years beginning on or after January 1, 2026, no income taxes whatsoever shall be levied or collected by the state or any political subdivision thereof and no income tax returns shall be required to be filed for such taxable years." SECTION 3. Said title is further amended by repealing in its entirety Chapter 7A, relating to tax credits. SECTION 4. (a) This Act shall become effective on July 1, 2026, and shall be applicable to taxable years beginning on or after January 1, 2026. (b) Tax, penalty, and interest liabilities and refund eligibility for taxable years beginning prior to January 1, 2026, shall not be affected by the passage of this Act and shall continue to be governed by the provisions of Title 48 of the Official Code of Georgia Annotated as it existed immediately prior to January 1, 2026. SECTION 5. 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. A Georgia Senate bill would completely eliminate the state income tax, along with all related income tax credits, starting with tax years beginning in 2026. ### Plain-language summary Georgia currently collects a state income tax under Chapter 7 of Title 48 of the Official Code of Georgia Annotated, and offers various income tax credits under Chapter 7A. This bill would repeal both chapters entirely. In their place, it adds a short new Chapter 7 that simply states no income taxes may be levied or collected by the state or any local government, and no income tax returns need to be filed, for tax years starting on or after January 1, 2026. The bill would take effect July 1, 2026, but its rules would apply retroactively to tax years beginning January 1, 2026. Tax liabilities, penalties, interest, and refunds tied to earlier tax years would still be handled under the old law, so the change would not erase obligations from before 2026. ### What it does - Repeals Chapter 7 of Title 48 of the Official Code of Georgia Annotated, which is Georgia's entire state income tax law. - Adds a new Chapter 7 stating that no income taxes may be levied or collected by the state or any political subdivision for tax years starting in 2026 or later. - Eliminates the requirement to file any state income tax return for tax years beginning on or after January 1, 2026. - Repeals Chapter 7A of Title 48, which contains Georgia's income tax credits, eliminating those credits along with the tax itself. - Preserves enforcement of tax debts, penalties, interest, and refunds for tax years before 2026 under the old law. ### Who it affects Every individual and business taxpayer in Georgia who currently pays state income tax or claims income tax credits, the Georgia Department of Revenue, which administers income tax collection, and local governments and political subdivisions, which are also barred from levying income taxes under the new language. ### Why it matters If enacted, Georgians and businesses would stop paying state income tax and stop filing state income tax returns starting with the 2026 tax year, ending a major source of state revenue. Existing income tax credits would also disappear, changing tax planning for anyone who currently relies on them. ### Key provisions - Section 1 repeals Chapter 7 of Title 48, the chapter that currently establishes and governs Georgia's state income tax. - Section 2 replaces it with a new Chapter 7 (O.C.G.A. ยง 48-7-1) barring any state or local income tax and any income tax filing requirement for tax years starting January 1, 2026 or later. - Section 3 repeals Chapter 7A of Title 48 in its entirety, eliminating the state's income tax credit programs. - Section 4 sets the effective date as July 1, 2026, applies the repeal to tax years beginning on or after January 1, 2026, and preserves tax liabilities, penalties, interest, and refund rights for earlier tax years under prior law. - Section 5 repeals any other laws that conflict with the Act. ## Status - Status: Introduced (2026-01-12) - Last action: Senate Read and Referred (2026-01-13) - Sponsors: Colton Moore - Official page: https://www.legis.ga.gov/legislation/72166 > The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb387.md?full=1