Lawmakers moving closer to ending Georgia income tax

Lawmakers moving closer to ending Georgia income tax

A Republican-led committee approved a final report outlining a plan to eliminate Georgia’s income tax.

ATLANTA - A key step toward a possible overhaul of Georgia’s tax system moved forward Wednesday after a legislative committee advanced a proposal aimed at eliminating the state income tax.

What we know:

A Republican-led committee met at the Georgia State Capitol to finalize a report outlining a plan to phase out Georgia’s personal and business income taxes. The report, completed over the summer, passed despite opposition from all three Democrats on the panel and is expected to serve as the blueprint for legislation when lawmakers reconvene Monday.

Hearing held on zero/flat income tax states

A hearing was held on Wednesday morning to discuss the possibility of zero or flat income tax for the majority of Georgia residents. 

Under the proposal, supporters say every Georgia taxpayer would see some form of tax relief. Beginning in 2027, about two-thirds of filers would no longer owe state income tax. The plan would exempt the first $50,000 of income for single filers and $100,000 for married couples filing jointly. Lawmakers backing the proposal say the goal is to gradually reduce taxes to zero by 2032.

Backers also stressed the plan would not cut government services, raise the sales tax, or create a state property tax. Democrats who voted against the report argue it raises long-term concerns and say they plan to voice their objections as the proposal moves into the legislative session.

What's next:

The final report is expected to be formally presented to the Georgia General Assembly when lawmakers return to the Capitol next week.