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Senate Finance advances bill to accelerate Georgia individual income tax cuts to 5.19%
Summary
The Senate Finance Committee voted to advance HB 111, a governor-sponsored bill that accelerates scheduled reductions in the state individual income tax rate from 5.39% to 5.19%, with a recorded committee tally of 9–2.
Representative Michelle Hung, the bill sponsor and governor’s floor leader, presented House Bill 111 to the Senate Finance Committee and said the measure “will accelerate the tax cut for Georgia’s individual income tax.”
The bill shortens the timetable for previously enacted rate reductions. Hung said the prior program—established by a 2022 law and accelerated in 2024—had already reduced the top rate from 5.49% to 5.39%. HB 111 would move the rate to 5.19% earlier than the statute’s original schedule.
The move, Hung said, was included in the current budget and is possible because of conservative budgeting and a larger-than-expected revenue balance. “This tax cut has already been included in our budget. We’re able to meet all of our expenses and crucial needs,” Hung said.
Committee members pressed for context. Senator Dolezal asked the sponsor to compare the tax cuts with unmet needs such as waiting lists for services. Hung and supporters pointed to a multi-pronged approach they said has combined tax cuts with other spending priorities, including teacher pay and building the rainy-day fund. Calvin Sorby, identified in committee as the governor’s policy adviser, told the committee the cut is a percentage reduction across all taxpayers and that higher-income taxpayers will see larger dollar reductions because they pay more state income tax.
Senators debated policy trade-offs. Senator Estevez asked about average savings for households earning $100,000 or less; the sponsor referred technical questions to the governor’s policy staff and offered an example from the committee packet showing a family earning $50,000 would see their state tax liability fall from about $5,100 to about $4,100 under earlier projections (the packet was noted as slightly out of date). Senator Orrut questioned the mechanics by which the committee could move the reduction forward when automatic statutory “trigger” thresholds were not met; the sponsor replied that HB 111 is an acceleration enacted through the budget, not an automatic trigger provision for future reductions.
The committee took a motion to advance the bill. Senator Ben Steele moved to pass HB 111; the motion was seconded. The committee recorded nine members in favor and two opposed; the motion carried. The sponsor indicated the bill will next go to the rules calendar for further floor action.
Votes at a glance: HB 111 — Motion to pass carried; recorded tally 9 yes, 2 no.
Context and background: Committee materials distributed to members trace a series of income-tax changes dating to 2018 and through subsequent sessions. Sponsors and supporters described changes over multiple bills (identified in committee as HB 1437 and HB 1015 in earlier years) that together raise standard deductions, increase child deductions, and phase down the top rate toward a 4.99% statutory end point. HB 111 continues that trajectory by accelerating the next scheduled rate step.
What’s next: With the committee vote passed, sponsors said HB 111 will be submitted to the Senate Rules calendar for additional consideration and the bill will require further readings on the Senate floor before final passage.
