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HB 463GEORGIASession 2025_26State BillSigned into law
Enacted

Georgia Economic Growth and Tax Relief Act of 2026

Original title: Ad valorem tax; certain senior citizens who volunteer with local governments; provide homestead exemption

Last action · May 11, 2026: House Date Signed by GovernorSponsors: Shaw Blackmon and 6 others

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Does

Georgia reduces its individual income tax rate to 4.99 percent, increases standard and dependent deductions, raises retirement income exclusions, and temporarily excludes up to $1,750 of qualified overtime and cash tips from taxation for tax years 2026 through 2028, while repealing various corporate tax credits and sales tax exemptions.

Why it matters

Individual taxpayers face lower state income tax rates and higher standard and dependent deductions, while employers must adjust payroll reporting for tax-exempt overtime and tips and certain businesses lose specific tax credits and exemptions.

Background
  • State income tax reductions in Georgia have been pursued incrementally through prior legislative measures tied to economic surplus triggers. context
  • The Revenue Shortfall Reserve functions as Georgia's primary rainy-day fund to manage budgetary surpluses and address fiscal shortfalls. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Individual taxpayers

Individual taxpayers experience a reduced personal income tax rate, higher standard and dependent deductions, and increased retirement income exclusions.

Directly affected

Full-time hourly employees

Full-time hourly employees receive a tax exemption on qualified overtime compensation up to $1,750.00 annually through 2028.

Directly affected

Workers in tipped occupations

Workers receiving cash tips receive a tax exemption on cash tips up to $1,750.00 annually through 2028.

Directly affected

Employers

Employers must submit detailed monthly or quarterly reporting data to the department regarding employee overtime compensation and cash tips.

Key Facts

  • The individual income tax rate is set to 4.99 percent for taxable years beginning on or after January 1, 2026.
  • The personal exemption deduction for each dependent increases from $4,000.00 to $5,000.00, with prospective annual increases up to $6,000.00 beginning January 1, 2027.
  • The standard deduction for a married couple filing a joint return increases from $24,000.00 to $30,000.00, with annual increases up to $36,000.00 beginning January 1, 2027.
  • The standard deduction for a single taxpayer, head of household, or married taxpayer filing a separate return increases from $12,000.00 to $15,000.00, with annual increases up to $18,000.00 beginning January 1, 2027.
Show all 12 facts
  • Tax rate reductions and standard deduction increases are subject to specific economic and revenue delay triggers evaluated as of December 1.
  • For taxable years beginning on or after January 1, 2027, the retirement income exclusion increases to $70,000.00 for qualifying taxpayers meeting specific eligibility requirements.
  • Qualified overtime compensation up to $1,750.00 received by full-time hourly employees is excluded from state taxation for taxable years beginning on or after January 1, 2026, and ending December 31, 2028.
  • Cash tips up to $1,750.00 received by individuals in tipped occupations are excluded from state taxation for taxable years beginning on or after January 1, 2026, and ending December 31, 2028.
  • Employers must submit monthly, quarterly, or annual reporting data regarding total qualified overtime compensation and cash tips paid to employees.
  • Multiple corporate income tax credits are repealed, including those for manufacturers of medical equipment, pharmaceuticals, alternative fuel vehicles, teleworking expenses, and port traffic increases.
  • Certain sales and use tax exemptions are repealed, including those for videotape rentals, printed advertising inserts, pollution reduction machinery, and high-technology computer equipment.
  • The Revenue Shortfall Reserve maximum limit is increased from 15 percent to 20 percent of the previous fiscal year's net revenue, allowing excess undesignated surplus funds to be used for tax relief.

Frequently Asked Questions

What is the new individual income tax rate under this Act?
The individual income tax rate is set to 4.99 percent for taxable years beginning on or after January 1, 2026.
Are overtime pay and cash tips completely exempt from state taxes?
A temporary exemption applies to and cash tips up to $1,750.00 per year for taxable years beginning between January 1, 2026, and December 31, 2028.
What are the new standard deduction amounts for joint filers?
The standard deduction for a married couple filing a joint return increases to $30,000.00, with prospective annual increases beginning in 2027 until it reaches $36,000.00.

What else do you want to know?

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Where This Stands

Current status: Signed into law.

Procedural history

22 actions
  1. May 11, 2026HouseEnrolled
    House Date Signed by Governor
  2. May 11, 2026GovernorEnrolled
    Act 465
  3. May 11, 2026Georgia General Assembly
    Effective Date
  4. Apr 10, 2026House
    House Sent to Governor
  5. Apr 2, 2026HouseFloor
    House Agreed Senate Amend or Sub As Amended
  6. Apr 2, 2026SenateFloor
    Senate Agreed House Amend or Sub
Show 16 earlier actions
  1. Feb 12, 2026Senate
    Senate Third Read
  2. Feb 12, 2026SenateFloor
    Senate Passed/Adopted By Substitute
  3. Feb 10, 2026SenateCommittee
    Senate Committee Favorably Reported By Substitute
  4. Jan 12, 2026Senate
    Senate Taken from Table
  5. Jan 12, 2026Senate
    Senate Recommitted
  6. Apr 2, 2025Senate
    Senate Engrossed
  7. Apr 2, 2025Senate
    Senate Tabled
  8. Mar 28, 2025SenateCommittee
    Senate Committee Favorably Reported
  9. Mar 28, 2025Senate
    Senate Read Second Time
  10. Mar 6, 2025SenateIntroduced
    Senate Read and Referred
  11. Mar 4, 2025House
    House Third Readers
  12. Mar 4, 2025HouseFloor
    House Passed/Adopted By Substitute
  13. Feb 26, 2025HouseCommittee
    House Committee Favorably Reported By Substitute
  14. Feb 19, 2025House
    House Second Readers
  15. Feb 18, 2025HouseIntroduced
    House First Readers
  16. Feb 13, 2025HouseIntroduced
    House Hopper

Version history & redline

6 versions on file
Comparing Floor Amendment AM 59 0036 → HB 463/AP*
removed addedOfficial text
removed: AM 59 0036 ADOPTED added: 26 HB 463/AP House Bill 463 (AS PASSED HOUSE AND SENATE) By: Representatives Blackmon of the 146th removed: and Williamson added: , Burns of the removed: 112th offer added: 159 th , Hatchett of the removed: following amendment: Amend added: 155th , Gilliard of the removed: substitute to HB 463 (LC 59 0316S) by deleting lines 1 through added: 162nd , Stephens of the removed: end added: 164 th , and removed: inserting in lieu thereof the following: added: others A BILL TO BE ENTITLED AN ACT To amend Title 33 and Title 48 of the Official Code of Georgia Annotated, relating to insurance and revenue and taxation, respectively, so as […]
Redline computed from the official version text (record lane).View this version →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Shaw BlackmonHouse · District 146RepublicanPrimary sponsor
Jon BurnsHouse · District 159RepublicanCosponsor
Matt HatchettHouse · District 155RepublicanCosponsor
Carl GilliardHouse · District 162DemocraticCosponsor
Ron StephensHouse · District 164RepublicanCosponsor
Show 2 more sponsors
Beth CampHouse · District 135RepublicanCosponsor
Blake TillerySenate · District 19RepublicanCosponsor

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Broad Shift in State Tax Structure

The legislation combines individual income tax reductions and temporary overtime/tip exemptions with the repeal of numerous specialized corporate tax credits and sales tax exemptions.

Office of Planning and Budget

Connected Entities

General Assembly of Georgia, Office of Planning and Budget
OrganizationGeneral Assembly of Georgia“Legislative body enacting the tax relief act.”Map →
OrganizationOffice of Planning and Budget“Required to make determinations and report on prospective annual tax rate reduct”Map →

Sources

Open source document

www.legis.ga.gov

Analysis Score

0–100
  • Significance90
    How much this matters to a regular citizen
  • Controversy45
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz60
    Current news / social attention level

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