Georgia Republicans are Putting Themselves on the Path to Income Tax Elimination

In 2026, Georgia Republicans may just be the next state to put themselves on the path to income tax elimination.  

Lieutenant Governor Burt Jones (R), a Taxpayer Protection Pledge signer, has made eliminating the state’s income tax a centerpiece of his gubernatorial campaign. Last year, Jones created a special committee led by Senate Appropriations Chairman Blake Tillery (R)to study the feasibility of eliminating the tax. After months of research and public testimony, the committee released its recommendations: Pass legislation this year to raise the state’s standard deduction to $50,000 for individuals and $100,000 for married couples and adopt further legislation to reduce business taxes and eliminate the personal income tax entirely by 2032.  

The first recommendation alone, raising the standard deduction for individuals and joint filers, would already be a major win for Georgians, amounting to a $3 billion tax cut. This change would effectively eliminate the state income tax for two-thirds of individual taxpayers, who would no longer pay the individual income tax. 

A second recommendation, accelerating the planned reduction of the state personal and business income taxes so that both rates are 4.99% by 2026, would make Georgia a more appealing state for business. This would keep Georgia competitive with other states in the region such as Florida, Tennessee, and Texas.  

After 2026, the two taxes would be decoupled, with the personal income tax continuing to drop, accelerating the process towards no income tax. 

Another notable recommendation made by the committee is to not shift the tax burden elsewhere, such as an increased sales tax or property tax, but to give Georgians real relief from tax burdens. Rather than focusing on new revenues, the proposal relies on a growing economy and a pro-growth policy environment.  

The move to eliminate the income tax is a big step in the right direction that will help to make the state more economically competitive. Across the country, states are moving towards lower, flatter tax rates. In 2025, 12 states cut their income taxes, with 14 states endorsing income tax elimination. Further reductions in Georgia’s rates will make it more economically appealing to both individuals and businesses alike. The move would put Georgia in a growing cohort of states moving towards a more taxpayer-friendly environment, including its neighbors in Tennessee and Florida. 

In recent years, Georgia has consistently posted state budget surpluses. Reducing personal income and business tax rates would allow the state to capitalize on this strong fiscal position by fostering a more competitive business climate, cutting unnecessary government red tape, and strengthening a pro-growth economy that benefits all Georgians. 

Under Governor Brian Kemp’s leadership, Georgia has taken meaningful steps toward becoming more taxpayer and business friendly, most notably with the Tax Reduction and Reform Act of 2022, which flattened the state’s personal income tax and put rates on a downward trajectory. While this progress is significant, Georgia still lags behind key regional competitors. Tennessee and Florida levy no individual income tax at all, and even Alabama’s top marginal income tax rate remains lower than Georgia’s, underscoring the need for further reform if Georgia hopes to remain economically competitive. 

Georgia Republicans have taken meaningful steps to make the state more pro-growth and affordable for its residents. Increasing the rate of tax reduction and further lowering the personal income tax moves Georgia in the right direction toward a more competitive, business-friendly climate. If enacted, this proposal would build on recent progress and help make Georgia more affordable for families, workers, and employers across the state.