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House subcommittee hears bill to accelerate Georgia income tax cuts to 5.19%
Summary
A Ways and Means income tax subcommittee heard House Bill 111, presented on behalf of Gov. Brian Kemp, to accelerate a previously enacted reduction in Georgia's individual income tax rate by 20 basis points to 5.19% for tax year 2025; the measure is at a hearing stage and a fiscal note has been ordered.
The Georgia House income tax subcommittee heard House Bill 111 on behalf of Gov. Brian Kemp, presented by Representative Sue Hong, to accelerate scheduled reductions in the state's individual income tax rate, lowering the rate by an additional 20 basis points to 5.19% for tax year 2025.
Supporters said the acceleration builds on tax legislation passed in 2022 (HB 1437) and estimated the change would save taxpayers roughly $880,000,000. Representative Sue Hong said the proposal aims to return revenue to taxpayers “when we have the ability to do this.” The bill presentation noted the change would speed up reductions that began after the 2022 session and that the measure is being offered as an LC 59 draft.
The committee treated the measure as a hearing-only item and the chair ordered a fiscal note. Committee members pressed staff and the author on budget triggers and the risk of accelerated reductions when longer-term effects of recent tax changes are not yet fully known. Representative Buckner said members are “uncomfortable” with additional reductions given recent changes and limited time to observe long-term effects. Another member asked staff to confirm the fiscal estimate and application of the triggers that were included in the earlier law.
Proponents argued the change helps keep Georgia competitive regionally; the bill presentation noted neighboring states with no income tax as part of the argument for lowering rates.
No committee vote was taken; the chair said the bill will return for a subsequent hearing after the fiscal note is completed.
The subcommittee also reminded members that the session was a first hearing and that the measure must clear the full committee after staff review and the fiscal analysis is available.
