Georgia Cuts Income Tax Rate Below 5% Under New Law

May 19, 2026

Georgia signed nine bills to boost the economy and reduce taxes, including lowering the state income tax rate from 5.19% to 4.99% starting in 2026, with further reductions planned. Property tax reform was enacted through a new Local Homestead Option Sales Tax. Other laws expand tax credits for scholarships, broaden rural healthcare tax-credit eligibility, and modernize corporate litigation policies. Legislation also supports independent contractors' benefits and exempts certain construction materials from sales tax.

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