Georgia Legislature Approves New Income Tax Cuts and Rebates for 2025

Georgia lawmakers have passed significant tax relief measures, including state income tax cuts and one-time rebates for residents, marking another step in the state’s trend of returning budget surpluses to taxpayers. Governor Brian Kemp is expected to sign the legislation shortly.

Key Provisions of the New Tax Legislation

1. Income Tax Rebate for 2024 FilersGeorgia residents who filed a state tax return in 2023 and continue to file in 2024 will receive one-time tax rebates of:

• $250 for single filers

• $375 for heads of household

• $500 for married couples filing jointly

  
  

2. Income Tax Rate ReductionEffective January 1, 2025, Georgia’s flat income tax rate will be reduced from 5.39% to 5.19%, with further reductions planned in future years, depending on economic conditions and state revenue.

Legislative Votes and Reactions

• The rebate bill passed 52-0 in the state Senate, indicating strong bipartisan support.

• The tax cut measure passed 30-23, with concerns voiced by some Democratic lawmakers that high-income earners may benefit disproportionately.

  
  

Despite concerns, the state’s substantial budget surplus has allowed for this tax relief without the need for offsetting spending cuts or new revenue sources.

What This Means for Georgia Taxpayers

• Immediate Cash Back: Tax rebates will offer short-term relief during the 2025 filing season.

• Long-Term Savings: The rate reduction means lower income taxes for most Georgians in the coming years.

• Fiscal Outlook: Georgia’s leadership is continuing a conservative fiscal approach, using surpluses to reduce tax burdens.