Many Georgia taxpayers could see a major reduction in their state income taxes under legislation that has cleared the Georgia State Senate and is now headed to the House.
Senate Bill 476 passed the Senate last week on a 32–18 vote. The measure would eliminate state income taxes entirely for individuals earning less than $50,000 per year and for families earning less than $100,000 annually.
In addition, the bill would lower the state’s individual income tax rate from 5.19 percent to 4.99 percent for those who continue to pay income taxes.
If approved by the Georgia House of Representatives and signed into law, the changes would take effect beginning with the 2026 tax year.
Currently, nine states do not collect a state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If Senate Bill 476 becomes law, Georgia would become the 10th state without an income tax for many residents.
The bill must receive House approval before it can be sent to the governor for consideration.