Governor Signs Legislation Granting Broad Tax Relief for Georgia Taxpayers

On May 11, Georgia Governor Brian Kemp signed two pieces of legislation into law, granting Georgia taxpayers significant tax relief following the passage of House Bill 463 (HB 463) and Senate Bill 33. These measures accelerate previously planned state income tax reductions while expanding property tax exemptions.

Effective January 1, 2026, HB 463 reduces Georgia’s state income tax rate from 5.19% to 4.99%, making Georgia one of the few states in the region with an income tax rate below 5%. The legislation also creates a pathway for additional future rate reductions tied to the state’s economic growth and revenue performance.

Alongside income tax reform, the Georgia General Assembly also approved Senate Bill 33 (SB 33), a comprehensive property tax reform measure and a major priority of Speaker Jon Burns. The legislation is designed to provide long-term property tax relief for homeowners while offering local governments additional tools to manage funding needs.

A key component of SB 33 expands statewide homestead exemption protections by requiring a floating homestead exemption statewide. This provision is intended to help limit rapid increases in taxable home values for qualifying homeowners, providing greater predictability and long-term tax stability for Georgia families.

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