Ken Lund, CC BY-SA 2.0 On Monday, Lt. Governor Burt Jones announced a highly anticipated proposal to further reduce the state income tax, enshrining Georgia’s status as an affordable, pro-growth state with a legislature committed to eliminating the income tax as soon as possible.
SB 477 will reduce Georgia’s personal income tax rate to 3.99% by 2028 – more than a 20% reduction to the current flat rate of 5.09%. SB 477 will also cut corporate and partnership taxes to 4.99% and increase the standard deduction for individuals and married couples to $16,000 and $32,000, respectively.
Georgia is already in a strong financial position, made possible by years of responsible budgeting and consistent income tax cuts, including a move to a flat tax in 2024. Committing to reduce and eventually eliminate their state income tax will only accelerate this trend and grow revenue in the out years as new families and dollars flow into Georgia.
Individuals and families will benefit immensely from this legislation, putting more money in their pockets. Americans vote with their feet, and the fastest growing states in the union – including Idaho, North Carolina, Texas, and Florida – all have either eliminated their state income tax or have committed to eliminating it over the next few years. SB 477 will improve Georgia’s prominence on the map for Americans looking to escape expensive, high-tax states that are already set to sacrifice eight congressional districts come 2030.
Joining the pack of states that are racing to reduce and eliminate their corporate and personal income taxes gives Georgia a competitive advantage in attracting new investment. Thanks to legislation like the 2022 Tax Reduction and Reform Act, Georgia has already seen record job growth over the past decade, reaching nearly 5 million by the end of 2025. But Georgia cannot afford to rest on its laurels. With money in the bank and growth on the horizon, now is the time to pass SB477 and send it to the Governor’s desk.
Lawmakers can look to the example of leaders like Governor Brian Kemp and Lt. Governor Burt Jones, who have provided the playbook for how to maintain a strong revenue flow while making the state more affordable for residents, more attractive for businesses, and more inviting for Americans looking to move. Americans for Tax Reform commends the legislature for its progress to date and looks forward to SB 477 giving Georgia an even more favorable position in the race to zero.
