SB477: SB477 Income Taxes; personal income tax rate; reduce

Georgia's personal income tax rate is currently set to drop gradually from 5.19% toward 4.99% under existing law. This bill accelerates that schedule: the rate would fall to 4.99% for the 2026 tax year, 4.49% for 2027, and 3.99% for 2028 and later years. Those cuts can still be delayed a year at a time if state revenue growth, revenue collections, or the state's Revenue Shortfall Reserve fall short of thresholds set in current law, and the Office of Planning and Budget must report those determinations each December. The bill also changes how corporations, S corporations, and partnerships electing to pay tax at the entity level are taxed, tying their rate to the same individual rate in Code Section 48-7-20 instead of a separate fixed rate. It raises the standard deduction from $24,000 to $32,000 for married couples filing jointly and from $12,000 to $16,000 for single filers and heads of household. The changes would take effect July 1, 2026, and apply to tax years starting on or after January 1, 2026.

• Accelerates the scheduled cut to Georgia's personal income tax rate, reaching 4.99% in 2026, 4.49% in 2027, and 3.99% in 2028 and beyond.
• Keeps the existing delay mechanism that can postpone a scheduled rate cut by a year if revenue growth, revenue collections, or the state's reserve fund fall short of set thresholds.
• Ties the tax rate paid by corporations, electing S corporations, and electing partnerships to the same rate charged to individuals, rather than a separately fixed corporate rate.
• Raises the standard deduction from state taxable income from $24,000 to $32,000 for joint filers and from $12,000 to $16,000 for single filers, heads of household, and separate filers.
• Sets the law to take effect July 1, 2026, applying to tax years beginning on or after January 1, 2026.

Georgia individual income taxpayers who use the standard deduction, corporations and S corporations doing business in Georgia, partnerships that elect to pay tax at the entity level, and state budget officials who must track revenue thresholds under the delay provisions of the tax cut schedule.

Georgians would see their state income tax rate fall faster than under current law, and more taxpayers using the standard deduction would owe tax on a smaller amount of income. Businesses taxed at the corporate or partnership level would see their rate move in step with the individual rate rather than staying fixed.

• Section 1 rewrites O.C.G.A. § 48-7-20(a.1) to set the individual tax rate at 4.99% for 2026, 4.49% for 2027, and 3.99% for 2028 and later, replacing the prior 0.10% annual step-down toward 4.99%.
• Section 1 preserves the requirement that each scheduled rate cut be delayed a year if the Governor's revenue estimate, prior-year net revenue collections, or the Revenue Shortfall Reserve do not meet specified conditions as of December 1.
• Section 2 amends O.C.G.A. § 48-7-21 so corporations and electing S corporations pay tax at the same rate applied to individuals under § 48-7-20(a.1), rather than a separate fixed corporate rate.
• Section 3 makes the same change for partnerships that elect to pay tax at the entity level under O.C.G.A. § 48-7-23.
• Section 4 amends O.C.G.A. § 48-7-27 to raise the standard deduction to $32,000 for joint filers (up from $24,000) and $16,000 for single filers, heads of household, and separate filers (up from $12,000).
• Section 5 sets the effective date as July 1, 2026, applicable to taxable 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 tax rate
• standard deduction
• corporate taxes
• partnership taxes
• state budget