(Media release from the Office of Governor Brian Kemp):
Governor Brian P. Kemp, joined by First Lady Marty Kemp, Lieutenant Governor Burt Jones, Speaker Jon Burns, and members of the General Assembly announced on Monday their shared priority of introducing and passing legislation in the upcoming regular session of the General Assembly that will accelerate a decrease in the state individual income tax rate. This legislation will amend HB 1437, which provides for a step down of 10 basis points in the income tax rate, starting in 2025 and for each taxable year thereafter until the rate reaches 4.99 percent. By accelerating the reduction, the rate for Tax Year 2024 will be 5.39 percent, rather than the 5.49 percent set by HB 1437. This will mark a cut of 36 basis points from the Tax Year 2023 rate of 5.75 percent.
“When I signed the largest income tax cut in state history in 2022, I did so with the understanding we would deliver on this promise in a responsible way,” said Governor Brian Kemp. “Now, thanks to our conservative budgeting and strong state economy built on business-friendly policies, we are well-positioned to move the timeline up and put more money where it belongs — back into Georgians’ pockets. I look forward to working with our partners in the legislature to bring this further relief to families still burdened by Bidenomics.”
The Office of Planning and Budget estimates savings for Georgia taxpayers of approximately $1.1 billion in calendar year 2024 as a result of the tax cut acceleration and the 26 basis-points reduction provided in HB 1437.
“Today’s announcement is a great step toward ultimately eliminating Georgia’s income tax, a top priority of mine,” said Lt. Governor Burt Jones. “I commend Governor Kemp and members of the legislature for strategically putting our state in the position to give more money back to every Georgian. Along with the announcement today and the work of the Joint Tax Review Panel, I am confident we will identify additional ways to improve our tax structure and keep Georgia the best place to live and work.”
“As conservatives, we’re guided by the principle that tax dollars belong to those who earned them in the first place and that low taxes encourage economic growth,” said Speaker of the House Jon Burns. “This approach has resulted in Georgians enjoying not only the No. 1 business climate but also one of the lowest per-capita tax burdens in the country. Today, conservative leadership is once again lowering taxes on working Georgians so they can support their families at a time when inflation has eroded the buying power of their paychecks.”
