On 18 April 2024, the Governor of Georgia announced the enactment of a tax reduction package. The package features House Bill (HB) 1015, which amends the individual income tax rate adjustment plan initially set forth by HB 1437 in 2022. Under HB 1437, the individual income tax rate was 5.49% for tax years commencing on or after 1 January 2024. This tax rate will be gradually reduced at a rate of 0.10% per annum until it reaches a tax rate of 4.99% starting on or after 1 January 2029. HB 1015 revises the current plan, setting an individual income tax rate of 5.39% for tax years beginning on or after 1 January 2024. This tax rate will be gradually reduced at 0.10% per year commencing on or after 1 January 2025 until a target tax rate of 4.99% is achieved.
The governor also enacted HB 1023, which aligns the corporate income tax rate with the individual income tax rate starting on or after 1 January 2024. As such, the tax rate will be lowered to 5.39% for the fiscal periods commencing on or after 1 January 2024. It will be gradually reduced at 0.10% per year until it reaches 4.99% if the state meets the revenue criteria.
