By Delaney Tarr
In an increasingly expensive world, some lawmakers are fighting to lower Georgia’s income tax. Can they come up with the funds to do it?
There’s one Georgia issue at the top of every 2026 legislative discussion: the fate of the state’s income tax.
On Jan. 7, the Georgia Senate Special Committee on the Elimination of Georgia’s Income Tax approved the final report and recommendations that kicked off work in August 2025. It will serve as a guide for bills in this legislative session.
The committee recommended an ambitious plan – slash income tax for people making less than $100,000 by 2027, get rid of all income tax by 2032 and do it without offsetting the burden onto taxpayers.
Advocates say the income tax dollars will reenter Georgian’s pockets and stimulate the local economy, while opponents worry the state will not be able to recuperate lost tax revenue. It has created a major divide among party lines.
Two high-level Republican officials are leading the charge. State Senator Blake Tillery, who is vying for Lieutenant Governor in 2026 and Lieutenant Governor Burt Jones, who is running for Governor are the biggest champions.
Notably, Governor Brian Kemp is cooler on the cause of eliminating state income tax. He has previously signed several laws to lower the state income tax rate incrementally each year. The current income tax rate is 5.19 percent, and it’s on track to decrease by 0.10 percent each year.
The committee report outlined a plan to get rid of the 5.19 percent rate entirely by 2027. But it is only for individuals making less than $50,000 and families making less than $100,000. That could account for nearly two-thirds of Georgia residents, according to the committee report.
It raises a key question. Who or what will make up for the lost funding?
With the 2027 plan, supporters have looked to the state’s budget surplus. For several years Georgia has operated on a surplus, and it had roughly $2 billion extra in 2025. The report plans to cover the first fiscal year’s losses with those dollars. In the future, the report planned for more surplus dollars.
“(This) gives us confidence that Georgia will have similar levels of reserve and ‘budget space’ in future fiscal years,” the report said.
The committee also believes Georgia can find $3 billion in savings from the nearly $30 billion of tax credits and exemptions in the current tax code.
Things get more complicated as the plan continues. Supporters don’t just want to lower income tax. They want to eliminate it entirely. But statewide personal income tax accounts for over $16 billion of the state’s revenue. That takes up 47 percent of the general fund.
Opponents sounded the alarm on the plan’s pitfalls. Think tank and nonprofit Georgia Budget and Policy Institute claimed the state would have to supplement its missing money with a rising sales tax.
Georgia’s sales tax is four percent statewide, though most counties pay a higher rate. In Atlanta, buyers have to pay an 8.9 percent sales tax. It’s already a high rate, but the Budget and Policy Institute said the statewide sales tax could climb to 10.2 percent if the state eliminated income tax.
But Sen. Tillery has promised he won’t raise sales taxes, add them to groceries or gut special benefits for retirees and veterans.
“There is no need to rob Peter to pay Paul,” the report said.
Other states with no income tax like Florida, Tennessee and Texas make over half their state budget funds from sales tax, according to the Georgia Budget and Policy Institute. Georgia would have to increase its tax or drastically bump up sales revenue to match up.
The committee claims “putting money in the hands of individuals” will give them cash for childcare, groceries, gas and dining out. It is posed as an economic boost that will stimulate Georgia’s economy and offset lost dollars.
It also recommended reduced government spending, emergency spending caps for events like hurricanes, and assessments on “efficiency” for all committees and councils.
Critics aren’t so sure the proposals can compensate for $16 billion. In a response to the report, the Georgia Budget and Policy Institute said the committee’s “lack of specific recommendations” will point to one outcome: increasing sales tax and cost of living.
But there is another major plan on the horizon for 2032. Lawmakers want to eliminate homestead property taxes.
On Jan. 28, Republican House Speaker Jon Burns introduced a proposal to increase the state homestead exemption every year until 2032, and ensure homeowners won’t have to pay property taxes on their property by the deadline.
This proposal creates a $5 billion gap, with $3 billion needed to fund schools and the rest for cities and counties. There’s one key difference, though. This plan allows for a higher sales tax.
While Tillery and his supporters are opposed to a climbing sales tax, Burns’ plan would allow for a three percent hike in each county and city.
It’s unclear whether these lofty plans will materialize, or where exactly the funds are coming from. But lawmakers are set on one thing: relieving a tax burden wherever they can.
“This historic tax relief would be delivering on our commitment to making life more affordable for our neighbors across this entire state of Georgia,” Burns said.
Delaney Tarr is a Florida native-turned-Georgia lover with years of experience covering the ins and outs of Atlanta. She specializes in untold stories, eclectic profiles and hard-hitting news.
