Some Georgia residents have tax reasons to celebrate, as Gov. Brian Kemp recently approved $700 million worth of tax relief measures for individuals and businesses. It is estimated that Georgia taxpayers could save about $1.1 billion by 2024 and $3 billion over the next ten years.According to Gov. Kemp, the new Georgia state income tax cuts, retroactive to January 1st of this year, are designed to keep more money in Georgian’s pockets.release.
Subscribe to Kiplinger’s Personal Finance
Be a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Notably, these tax measures garnered bipartisan support. Georgia lawmakers face an election in November in which all 236 state House and Senate seats are up for grabs.In addition to income tax cuts. Georgians can expect an increased tax exemption for dependent care and, depending on voters in the November state election, a state cap on property taxes. Here is more of what you need to know.
Georgia income tax rate 2024
Georgia’s income tax landscape has already undergone recent changes. At the start of the year, Georgia transitioned to a flat tax rate of 5.49%, down from a tiered system that peaked at 5.75%. An acceleration in the newly signed legislation reduces the state income tax rate to 5.39% as of Jan. 1, 2024, a decrease from the previously scheduled 5.49%. The income tax cut could reportedly save Georgia taxpayers an additional $360 million. However, Georgia lawmakers went beyond income tax cuts. The new tax package also addresses corporate tax rates, aligning them with the decreasing personal income tax rate until both eventually reach 4.99%. The corporate tax measure is projected to cost $176 million initially and $210 million by 2029.
Georgia dependent allowances
Gov. Kemp also signed HB 1021 into law, a bill increasing the Georgia state tax deductions for dependents.
Note: Georgia currently offers a dependent exemption for unborn children. As Kiplinger has reported, taxpayers cannot claim a fetus as a dependent for federal income tax purposes. However, if you are a Georgia resident, your fetus qualifies as a dependent for state tax purposes as of July 20, 2022.
Georgia property tax rate
In November, Georgians can vote on a constitutional amendment to capping property tax increases. HB 581 enables counties to provide property tax relief through a homestead valuation freeze.If approved, this amendment would limit annual increases in property value assessments in Georgia to the inflation rate, offering homeowners protection against skyrocketing property taxes fueled partly by rising home values.Also, though not related to property tax, SB 496 is included in the package. It expands the criteria for historic home certification and extends tax credits for rehabilitation projects. The measure is designed to help preserve Georgia’s architectural heritage and support economic activity in the state.