SB 477: Income Taxes; personal income tax rate; reduce

Georgia currently taxes personal income at a flat rate that was set to gradually fall from 5.19 percent toward 4.99 percent over several years. This bill speeds up and extends that schedule: the rate would be 4.99 percent for the 2026 tax year, 4.49 percent for 2027, and 3.99 percent for 2028 and afterward. It also lowers the bar for delaying a scheduled cut, requiring the Governor's revenue estimate to rise by only 1 percent (instead of 3 percent) for the reduction to proceed on schedule. The bill also sets the corporate income tax rate and the tax rate paid by electing S corporations and partnerships at 4.99 percent, rather than tying those rates to the individual rate. It raises the standard deduction from state taxable income to $32,000 for married couples filing jointly (up from $24,000) and to $16,000 for single filers or heads of household (up from $12,000). The changes would take effect July 1, 2026, and apply to tax years beginning on or after January 1, 2026.

• Sets the personal income tax rate at 4.99 percent for 2026, 4.49 percent for 2027, and 3.99 percent for 2028 and later years, replacing the prior gradual 0.10 percent annual reduction schedule.
• Lowers the revenue-growth threshold that can delay a scheduled tax cut, from requiring a 3 percent rise in the Governor's revenue estimate to only a 1 percent rise.
• Fixes the corporate income tax rate at 4.99 percent instead of tying it to whatever the individual income tax rate happens to be each year.
• Sets the tax rate for electing S corporations and partnerships at 4.99 percent of their net income, delinking it from the individual rate.
• Raises the standard deduction from state taxable income to $32,000 for married couples filing jointly and $16,000 for single filers, heads of household, or married people filing separately.
• Ends the annual rate-reduction review process once the individual rate reaches 3.99 percent instead of 4.99 percent.

Georgia individual taxpayers who pay the state personal income tax, domestic and foreign corporations doing business in Georgia, owners of partnerships and S corporations that elect to pay entity-level tax, and state budget officials, including the Office of Planning and Budget, who track revenue triggers for the rate cuts.

Most Georgia wage earners, business owners, and corporations would see lower state income tax bills as rates fall toward 3.99 percent for individuals and 4.99 percent for entities, while a bigger standard deduction would shrink taxable income further for people who don't itemize. The lowered revenue-growth trigger makes it easier for future scheduled cuts to actually take effect rather than being delayed.

• Section 1 rewrites O.C.G.A. § 48-7-20 to set fixed personal income tax rates by year: 4.99 percent (2026), 4.49 percent (2027), and 3.99 percent (2028 onward), replacing the old incremental reduction formula.
• Section 1 also changes the delay trigger in paragraph (2), lowering the required revenue estimate growth from 3 percent to 1 percent above the prior year's estimate.
• Section 1 states the annual reporting and delay process ends once the rate reaches 3.99 percent rather than the previous 4.99 percent stopping point.
• Section 2 amends O.C.G.A. § 48-7-21 to set a flat 4.99 percent corporate income tax rate and the same rate for electing S corporations, instead of matching the individual rate.
• Section 3 amends O.C.G.A. § 48-7-23 to set the same 4.99 percent rate for electing partnerships' net income.
• Section 4 amends O.C.G.A. § 48-7-27 to raise the standard deduction to $32,000 for joint filers and $16,000 for single filers, heads of household, or separate filers.
• Section 5 makes the Act effective July 1, 2026, applying to tax years beginning on or after January 1, 2026.

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

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

   31 yea, 14 nay (3 not voting, 6 absent)

   Passage: Senate Vote #545

• income taxes
• tax rate cuts
• standard deduction
• corporate taxes
• Georgia state budget