HB1152: HB1152 Health Coverage Affordability and Fairness Act; enact

Georgia currently taxes income used to pay health insurance premiums unless it is already excluded through an employer plan. This bill, called the Health Coverage Affordability and Fairness Act, would add a new deduction to the state's tax code (O.C.G.A. § 48-7-27) letting qualifying taxpayers subtract the full amount of premiums they pay for employer sponsored insurance, marketplace coverage bought through a state or federal exchange, or COBRA continuation coverage. To qualify, a single filer or head of household would need federal adjusted gross income of $60,000 or less, and a married couple filing jointly would need $120,000 or less. The deduction covers medical, dental, and vision premiums, but not deductibles, copays, or other cost-sharing amounts, and only applies to costs not already excluded from federal income. The state revenue commissioner could require proof of payment and would write rules to administer the deduction. The Department of Revenue must report the deduction's fiscal impact to the legislature each year. The change would take effect once the Governor signs it or it otherwise becomes law, applying to tax years starting January 1, 2026.

• Creates a new Georgia income tax deduction for health insurance premiums paid by qualifying lower and middle income taxpayers.
• Limits the deduction to taxpayers earning $60,000 or less (single or head of household) or $120,000 or less (married filing jointly), based on federal adjusted gross income.
• Covers premiums for employer sponsored plans, marketplace coverage, and COBRA continuation coverage, including medical, dental, and vision, but excludes deductibles and copays.
• Directs the state revenue commissioner to write rules and may require documentation such as employer statements or insurer invoices to verify premium payments.
• Requires the Department of Revenue to publish an annual estimate of the deduction's cost and send it to the House and Senate Appropriations Committees.
• Sets the deduction to apply to tax years beginning on or after January 1, 2026, once the bill becomes law.

Georgia taxpayers earning $60,000 or less (single filers and heads of household) or $120,000 or less (married couples filing jointly) who pay premiums for employer, marketplace, or COBRA health coverage; the Georgia Department of Revenue, which must administer and report on the deduction; and legislative appropriations committees, which receive the annual cost estimate.

Eligible Georgians would owe less in state income tax by fully deducting what they spend on health insurance premiums, potentially easing the cost of keeping coverage for lower and middle income households. The change would also create new paperwork and rulemaking for the Department of Revenue.

• Section 1 names the bill the 'Health Coverage Affordability and Fairness Act.'
• Section 2 states legislative findings that many Georgia families struggle with premium costs and that a deduction could reduce the uninsured rate.
• Section 3 amends O.C.G.A. § 48-7-27 to add a new paragraph (16) defining 'qualifying taxpayer' by income thresholds and creating the 100 percent premium deduction.
• Section 3 excludes deductibles, copayments, and other cost-sharing amounts from the deduction, and bars double-counting of amounts already excluded from federal income or reimbursed through a health reimbursement arrangement.
• Section 3 authorizes the commissioner to require documentation like employer statements, marketplace forms, or insurer invoices to verify premium payments.
• Section 3 requires the Department of Revenue to give the House and Senate Appropriations Committees an annual fiscal impact estimate.
• Section 4 sets the effective date upon the Governor's approval or the bill becoming law without it, applying to tax years starting January 1, 2026.
• Section 5 repeals conflicting laws.

1. 2026-02-04House Second Readers (House)
2. 2026-02-03House First Readers (House)
3. 2026-02-02House Hopper (House)

• Samuel Park (D, HD-107)Primary sponsor
• Carolyn Hugley (D, HD-141)
• Tanya Miller (D, HD-062)
• Eric Gisler (D, HD-121)
• Tangie Herring (D, HD-145)
• Michelle Au (D, HD-050)

• health insurance
• state income tax
• tax deductions
• health care affordability