SB 476: "Income Tax Reduction Act of 2026"; enact

Georgia's personal income tax rate was already scheduled to drift down to 4.99% over several years, with the pace tied to state revenue triggers. This bill locks in the 4.99% rate immediately for tax years starting in 2026, removes the trigger system entirely, and sets the same 4.99% flat rate for corporations and partnerships. It also raises the standard deduction sharply, from $24,000 to $100,000 for joint filers and from $12,000 to $50,000 for single filers. To offset the lost revenue, the bill repeals a long list of existing tax breaks: insurance premium tax reductions, a bank tax credit, credits for manufacturers of medical equipment, pharmaceuticals, and protective equipment, electric vehicle and alternative fuel credits, headquarters and cigarette-export manufacturing credits, port traffic credits, and teleworking expense credits. It cuts the research investment credit in half and caps the low-income housing tax credit. It also repeals several sales tax exemptions, including for videotape rentals, aircraft and watercraft sales, pollution control equipment, and data centers, while letting existing exemption certificates run out on their old terms. Most changes take effect January 1, 2027, though the rate cuts start July 1, 2026, applying to 2026 tax years, and all remaining tax credits expire after 2031.

Individual Georgia taxpayers, corporations, and partnerships filing state income tax returns; banks, insurers, and manufacturers that currently claim specific tax credits; developers of low-income housing; retailers and buyers of aircraft, watercraft, and boats; data centers and high-technology companies; and licensed commercial fishermen who buy crab bait.

Most filers would see a lower flat income tax rate and a much larger standard deduction, reducing their taxable income. At the same time, businesses that rely on specific credits for manufacturing, clean vehicles, headquarters, or research investment would lose those benefits, and several sales tax exemptions would disappear for new purchases.

1. 2026-02-18House Second Readers (House)
2. 2026-02-17House First Readers (House)
3. 2026-02-12Senate Passed/Adopted (Senate)
4. 2026-02-12Senate Third Read (Senate)
5. 2026-02-12Senate Engrossed (Senate)
6. 2026-02-11Senate Read Second Time (Senate)
7. 2026-02-10Senate Committee Favorably Reported (Senate)
8. 2026-02-09Senate Read and Referred (Senate)

• Blake Tillery (R, SD-019)Primary sponsor
• Larry Walker (R, SD-020)
• Jason Anavitarte (R, SD-031)
• Chuck Hufstetler (R, SD-052)
• Randy Robertson (R, SD-029)
• Shawn Still (R, SD-048)
• Matt Brass (R, SD-006)
• Steve Gooch (R, SD-051)
• Max Burns (R, SD-023)
• Ricky Williams (R, SD-025)
• Chuck Payne (R, SD-054)
• Kay Kirkpatrick (R, SD-032)
• Carden Summers (R, SD-013)
• Timothy Bearden (R, SD-030)
• Jason T. Dickerson (R, SD-021)
• Drew Echols (R, SD-049)
• Sam Watson (R, SD-011)
• Russ Goodman (R, SD-008)
• Greg Dolezal (R, SD-027)
• Frank Ginn (R, SD-047)
• Bo Hatchett (R, SD-050)
• Bill Cowsert (R, SD-046)
• Ben Watson (R, SD-001)
• Mike Hodges (R, SD-003)
• John Albers (R, SD-056)
• Billy Hickman (R, SD-004)
• Clint Dixon (R, SD-045)
• Lee Anderson (R, SD-024)
• Brian Strickland (R, SD-042)
• Ed Setzler (R, SD-037)
• Marty Harbin (R, SD-016)
• David Lucas (D, SD-026)

1. PassedSenate voteFebruary 12, 2026

   31 yea, 21 nay (0 not voting, 2 absent)

   Motion To Engross: Sb 476, Sb 477: Senate Vote #542

2. PassedSenate voteFebruary 12, 2026

   32 yea, 18 nay (1 not voting, 3 absent)

   Passage: Senate Vote #543

• income tax
• tax credits
• sales tax exemptions
• standard deduction
• corporate taxes