SB387: SB387 Revenue and Taxation; state income tax in its entirety; repeal

Georgia currently collects a state income tax under Chapter 7 of Title 48 of the Official Code of Georgia Annotated, and it offers various tax credits under Chapter 7A of the same title. This bill would repeal both chapters completely. In their place, it would add a single new provision stating that no income taxes of any kind may be levied or collected by the state or any local government, and that no income tax returns would need to be filed, for tax years beginning on or after January 1, 2026. The change would take effect July 1, 2026, but would apply retroactively to income earned starting January 1, 2026. Tax years before that date would still be governed by the old law, meaning any taxes, penalties, interest, or refunds owed for earlier years would not be affected by this repeal.

• Repeals Chapter 7 of Title 48 of the Official Code of Georgia Annotated, which is the law establishing Georgia's state income tax.
• Adds a new Chapter 7 declaring that no income taxes may be collected by the state or any political subdivision (such as a city or county) starting in tax year 2026.
• Eliminates the requirement to file any state income tax returns for taxable years beginning on or after January 1, 2026.
• Repeals Chapter 7A of Title 48, which contains Georgia's income tax credit programs, since there would be no income tax for credits to reduce.
• Preserves the old tax law for years before 2026, so past-due taxes, penalties, interest, and refund claims from earlier years are unaffected.

Every Georgia individual and business taxpayer who currently pays state income tax, the Georgia Department of Revenue, which administers income tax collection, and any local governments that might otherwise levy income-based taxes, since the bill blocks income taxes at every level of state government.

If enacted, Georgians and Georgia businesses would no longer pay state income tax or file state income tax returns starting with income earned in 2026, which would eliminate a major source of state revenue and remove existing income tax credits that some taxpayers currently rely on.

• Section 1 repeals Chapter 7 of Title 48 of the Official Code of Georgia Annotated in its entirety, removing the existing income tax law.
• Section 2 replaces it with a new Chapter 7 (O.C.G.A. § 48-7-1) stating no income taxes shall be levied or collected by the state or any political subdivision, and no returns are required, for tax years starting January 1, 2026.
• Section 3 repeals Chapter 7A of Title 48, eliminating all existing state income tax credits.
• Section 4 sets the effective date as July 1, 2026, applicable to tax years beginning on or after January 1, 2026, while preserving tax, penalty, interest, and refund rules for earlier years.
• Section 5 repeals any other state laws that conflict with this Act.

1. 2026-01-13Senate Read and Referred (Senate)
2. 2026-01-12Senate Hopper (Senate)

• Colton Moore (R, SD-053)Primary sponsor

• state income tax
• tax credits
• Georgia tax law
• tax repeal