Georgia lawmakers are gearing up for one final meeting of a key Senate committee focused on wiping out the state’s personal income tax. This push, led by Republican leaders, comes ahead of the 2026 legislative session starting in January, as they explore ways to replace billions in lost revenue while aiming to boost economic growth.
Committee Plans Final Push Before Session
The Georgia Senate Study Committee to Eliminate Georgia’s Income Tax plans to hold one more meeting before the new legislative year kicks off. A Senate spokesperson confirmed the group, first set up by Lt. Gov. Burt Jones in July 2025, got an extension past its original December 15 deadline.
This extra time allows members to wrap up discussions and refine a draft proposal. The committee last met on November 17, 2025, and has been touring the state to gather input. Lawmakers say the goal is to make Georgia more competitive, drawing in businesses and residents tired of high taxes elsewhere.
Committee Chairman Blake Tillery has stated a bill will hit the floor in 2026. Yet details remain thin on how to fill the revenue gap.
Officials point to strong state finances as a foundation. Georgia’s budget surplus hit record levels in recent years, thanks to conservative spending and economic rebounds post-pandemic.
Roots of the Income Tax Elimination Idea
Talk of ditching the income tax picked up steam after Jones floated the concept during his campaign. He argues it would put Georgia on par with no-income-tax states like Florida and Tennessee, which have seen population booms.
The current tax rate stands at 5.49 percent for most earners, down from higher levels in past years. Lawmakers have already slashed it multiple times since 2018, saving residents billions.
Proponents say elimination could save Georgians over $7.5 billion in the next decade, based on recent cuts. Jones has suggested tying this to property tax reforms to ease burdens on homeowners.
The idea echoes moves in other southern states. South Carolina and Louisiana are also eyeing rate cuts or full eliminations to spark growth.
Revenue Challenges and Replacement Options
Scrapping the tax would create a massive hole, with estimates pegging lost revenue at around $16 billion yearly. That’s a big chunk of the state’s budget, which funds schools, roads, and health care.
Lawmakers have not detailed a full plan yet. Some ideas include hiking sales taxes or leaning more on property taxes, but with controls to prevent spikes.
Experts warn of risks. A report from a budget think tank highlights how no-income-tax states often rely on higher sales or property taxes, which can hit lower-income families harder.
Here are key revenue sources Georgia might adjust:
- Sales taxes: Currently at 4 percent statewide, plus local add-ons.
- Property taxes: Could see reforms to cap growth amid rising home values.
- Corporate taxes: Might stay put to keep businesses happy.
- Other fees: Like those on fuel or tourism, which could rise.
Without a clear roadmap, critics say the plan feels rushed.
| State | Income Tax Status | Main Revenue Replacement | Economic Impact Note |
|---|---|---|---|
| Florida | None | High sales and tourism taxes | Population growth leader |
| Tennessee | None | Sales tax at 7 percent | Strong job gains in tech |
| Texas | None | Property and energy taxes | Attracts major companies |
| Georgia (Current) | 5.49 percent flat rate | Balanced mix | Surplus of $10 billion in 2025 |
This table shows how peers manage without income taxes, offering lessons for Georgia.
Voices from Experts and Residents
Dr. Daniel Kanso, a fiscal analyst, notes the lack of specifics from backers. He stresses that without a solid funding plan, services could suffer.
On the flip side, supporters like business owners see it as a win. One Atlanta entrepreneur shared how lower taxes could help expand operations and hire more workers.
Public sentiment is mixed. Social media buzz shows excitement from conservatives, but worries from educators about school funding.
Recent polls indicate about 55 percent of Georgians support the idea if revenue gets replaced smartly. That’s up from earlier surveys, fueled by national tax cut trends.
Broader Economic Effects on Families
Families stand to gain or lose big. Middle-class earners might keep more in their pockets, freeing cash for spending or saving.
Yet higher sales taxes could raise living costs. Groceries and gas might cost more, pinching budgets for those on fixed incomes.
Georgia’s economy grew 3.2 percent in 2025, outpacing the national average. Backers say tax elimination could push that to 4 percent or higher by drawing remote workers and firms.
Compare that to states like California, where high income taxes have driven outflows. Georgia aims to flip the script.
Political Landscape and What Comes Next
Republicans hold strong majorities in the legislature, giving the bill good odds. Gov. Brian Kemp has backed past cuts and signaled openness to more.
Democrats push back, calling for protections for working families. They want any plan to avoid shifting burdens downward.
The final committee meeting could drop a draft bill soon. If passed, changes might phase in over years to soften the blow.
As Georgia weighs this bold step, it joins a wave of states rethinking taxes in a post-inflation world. Readers, what do you think about ending the income tax? Share your views in the comments and pass this article along to spark discussion.
