Full Breakdown
Georgia Gov. Brian Kemp Signs Tax Relief Bills Amid Political Pushback
5/13/2026, 12:04:03 AM
Tax Relief Bills Enacted
On May 11, 2026 Governor Brian Kemp signed House Bill 463 and Senate Bill 33. The measures stop short of earlier proposals to fully eliminate the state income tax by 2032 and to abolish property taxes. HB 463 lowers the personal income-tax rate from 5.19 % to 4.99 % for tax years starting Jan. 1, 2026 and allows 0.125 % annual cuts to a floor of 3.99 % if revenue grows. It raises the standard deduction to $30,000 for married couples and $15,000 for singles, increases dependent deductions, exempts overtime and cash tips (2026-2028), and lifts the retirement-income exclusion for those 65+ to $70,000 in 2027. SB 33 creates a Local Homestead Option Sales Tax to fund homestead exemptions, makes the base-year homestead exemption mandatory statewide, and caps assessment growth at 3 % annually. Both bills repeal credits for teleworking, electric/hybrid vehicles, and medical-equipment manufacturing.
Fiscal Impact
Georgia’s personal income tax generates about $16.5 billion annually, roughly 44 % of the general fund. The HB 463 cuts are contingent on a 3 % revenue-growth threshold, and the property-tax provisions aim to offset rising homeowner costs while preserving local-government funding.
Official Statements
Kemp said the state’s “commitment to growing opportunity and budgeting conservatively” lets it “return billions of dollars to taxpayers.” Jones added the cuts “help every family and business in Georgia.” Burns noted the measures address “affordability” and let “hardworking taxpayers keep more of their money where it belongs.”
Opposition and Legal Concerns
Democrats argue the cuts favor higher earners and could shrink school and local-service funding. Rep. Scott Holcomb says SB 33 violates the constitutional rule that revenue bills originate in the House, noting “the constitution is not optional.” Staci Fox criticized the process as bypassing voters, and Sen. Josh McLaurin warned the missing page in HB 463 could create “a live litigation issue.” Local officials fear reduced property-tax revenue will strain municipal budgets.
Conflicting Reports & Gaps
Some reports note a page listing eliminated tax credits was omitted from HB 463, and the constitutionality of SB 33’s Senate origin remains unsettled. The precise impact on local government finances has not been quantified.
Verbatim Quotes
- “We've remained the No. 1 state for business for a historic 12 consecutive years because of our commitment to growing opportunity and budgeting conservatively,” — Brian Kemp, Governor of Georgia
- “The bills being signed into law today help every family and business in Georgia.” — Burt Jones, Lieutenant Governor
- “is not optional” — Scott Holcomb, State Representative
- “The legislature said, ‘No, we don’t want to ask the people... We want to do it our way.’ It says a lot,” — Staci Fox, Executive Director, Georgia Budget and Policy Institute
Outlook
Kemp faces a Tuesday deadline to sign or veto remaining bills, and Democrats have signaled potential court challenges to SB 33 and HB 463. Republican leaders say they will pursue additional property-tax reforms in the next session, while analysts will watch whether state revenue growth sustains the planned income-tax reductions.
