HB1001: HB1001 Income tax; reduce rate of tax

Georgia has been gradually lowering its personal income tax rate under existing law, with annual 0.10 percent reductions tied to the state meeting certain revenue conditions. Under current law the rate was set at 5.19 percent for 2025, moving toward an eventual 4.99 percent floor. This bill changes the timeline in O.C.G.A. § 48-7-20 so that the 4.99 percent rate applies immediately for taxable years beginning on or after January 1, 2026, rather than being reached through further gradual annual cuts. It keeps the existing rule that lets the Office of Planning and Budget delay future reductions by a year if state revenue growth, prior collections, or the Revenue Shortfall Reserve do not meet certain thresholds, though that rule becomes moot once the 4.99 percent rate is reached. The bill would take effect July 1, 2026, and apply to tax years starting on or after January 1, 2026.

• Rewrites O.C.G.A. § 48-7-20(a.1) to set Georgia's income tax rate at 4.99 percent for taxable years beginning on or after January 1, 2026, instead of 5.19 percent.
• Removes the need for further gradual 0.10 percent annual rate reductions by moving straight to the final 4.99 percent rate a year earlier than the prior schedule.
• Keeps the existing delay mechanism, letting the Office of Planning and Budget postpone rate reductions if revenue growth or reserve conditions are not met, though it no longer applies once 4.99 percent is reached.
• Sets the effective date as July 1, 2026, applying to tax years beginning on or after January 1, 2026.

Georgia individual income taxpayers who pay the state's personal income tax, as well as the Department of Revenue, the Office of Planning and Budget, and legislative committees that monitor the state's revenue-based rate reduction process.

Georgia taxpayers would reach the lower 4.99 percent income tax rate sooner than under the prior gradual reduction schedule, meaning smaller state income tax withholding and liability starting with the 2026 tax year rather than in a later year.

• Section 1 revises O.C.G.A. § 48-7-20(a.1)(1) to set the tax rate at 4.99 percent for taxable years beginning on or after January 1, 2026, replacing the 5.19 percent rate previously listed for 2025.
• Section 1 retains paragraph (2), which lets the Office of Planning and Budget delay a scheduled rate reduction by a year if revenue growth, prior fiscal year collections, or the Revenue Shortfall Reserve (O.C.G.A. § 45-12-93) fall short of set benchmarks.
• Section 1 keeps paragraph (3), requiring the Office of Planning and Budget to report its determinations by December 1 each year to the Governor's office, legislative leaders, and relevant committees, though this requirement stops applying once the 4.99 percent rate takes effect.
• Section 2 sets the effective date as July 1, 2026, applying to taxable years beginning on or after January 1, 2026.
• Section 3 repeals any conflicting laws.

1. 2026-03-31Senate Tabled (Senate)
2. 2026-03-31Senate Engrossed (Senate)
3. 2026-03-19Senate Read Second Time (Senate)
4. 2026-03-18Senate Committee Favorably Reported (Senate)
5. 2026-02-26Senate Read and Referred (Senate)
6. 2026-02-25House Passed/Adopted (House)
7. 2026-02-25House Third Readers (House)
8. 2026-02-11House Committee Favorably Reported (House)

• Will Wade (R, HD-009)Primary sponsor
• Matthew Gambill (R, HD-015)
• Devan Seabaugh (R, HD-034)
• Soo Hong (R, HD-103)
• Shaw Blackmon (R, HD-146)
• Bruce Williamson (R, HD-112)
• Bo Hatchett (R, SD-050)

1. PassedHouse voteFebruary 25, 2026

   106 yea, 66 nay (2 not voting, 3 absent)

   Passage: House Vote #552

2. PassedSenate voteMarch 31, 2026

   33 yea, 15 nay (2 not voting, 4 absent)

   Motion To Engross: Hb 52, Hb 248, Hb 963, Hb 964, Hb 1001, Hb 1077, Hb 1116, Hb 1129, Hb 1132, Hb 1209: Senate Vote #876

3. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

• income tax
• tax rate cut
• Georgia state budget
• personal taxes