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GeorgiaHB 4632025-2026 Regular SessionHouseWALLET

Ad valorem tax; certain senior citizens who volunteer with local governments; provide homestead exemption

Sponsored By: Shaw Blackmon (Republican), Jon Burns (Republican), Beth Camp (Republican), Carl Gilliard (Democrat), Matt Hatchett (Republican), Ron Stephens (Republican)

Signed by Governor

Ways & MeansFinanceGeneral Bill

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 6 benefits, 4 costs, 1 mixed.

Bigger standard deductions for Georgia households

Starting January 1, 2026, joint filers get a $30,000 standard deduction instead of itemizing. Single filers, heads of household, and married people filing separately get $15,000. Starting January 1, 2027, yearly increases are $750 and $375, respectively, capped at $36,000 and $18,000. Each increase is delayed one year when any of three state budget tests fails. Next-year estimated revenue must be at least 3% above the current-year estimate. Prior-year net collections must exceed collections in each of the three earlier fiscal years. The reserve must exceed the projected revenue loss from the next tax-rate cut. The Office of Planning and Budget reports its yearly findings by December 1.

Lower income tax rates for Georgians

Georgia’s individual income tax rate is 4.99% beginning January 1, 2026. Starting January 1, 2027, scheduled yearly cuts are 0.125 percentage points, stopping at 3.99%. Each yearly cut is delayed one year whenever the law’s standard-deduction increase is delayed. Those delays depend on state revenue growth, past collections, and reserve levels.

Bigger dependent deductions for Georgia families

Starting January 1, 2026, you can deduct $5,000 for each person you claim as a dependent, up from $4,000. Starting January 1, 2027, the deduction rises by $125 each year until it reaches $6,000 per dependent. Those yearly increases face the same revenue-growth, collections, and reserve tests as standard-deduction increases. Failed tests delay an increase by one year.

Larger retirement tax break for retirees

Starting January 1, 2027, the highest retirement-income exclusion rises from $65,000 to $70,000 per year. It covers retirement income from any source for taxpayers in the law’s highest eligibility tier. A separate $35,000 exclusion remains for taxpayers in the other stated eligibility groups. The supplied provision identifies these groups by legal reference but does not spell out their eligibility requirements.

Businesses lose manufacturing and job tax credits

Georgia removes income tax credits for makers of protective equipment, medical equipment and supplies, pharmaceuticals, and medicines. It also removes the credit for businesses making cigarettes for export. Both credits tied to increases in base-year port traffic are repealed, including the employer credit. Businesses also lose credits for Georgia headquarters tied to full-time jobs and vehicles bought or leased to transport employees. The supplied text does not state credit amounts or repeal dates.

Temporary cash tip tax break for workers

For tax years 2026–2028, individuals can deduct up to $1,750 yearly in qualifying cash tips. The occupation must regularly receive tips and have a Treasury Tipped Occupation Code. Tips must be voluntary, with no penalty for nonpayment, and their amount must be chosen by the payer without negotiation. Occupations excluded under Section 63 of the federal tax code are not eligible. The deduction expires December 31, 2028.

Temporary overtime tax break for hourly workers

For tax years 2026–2028, full-time hourly employees can deduct up to $1,750 yearly in qualifying overtime pay. The pay must qualify under Section 225 of the federal tax code. For covered railway employers, qualifying hourly overtime is defined by the applicable union contract. This deduction expires December 31, 2028.

Teleworking taxpayers lose expense tax credit

Georgia removes the tax credit for eligible teleworking expenses. Taxpayers can no longer claim that credit under the repealed provision. The supplied text does not state the credit amount or repeal date.

Vehicle and charger buyers lose tax credits

Georgia removes its income tax credits for alternative-fuel, low-emission, and zero-emission vehicles and electric vehicle chargers. Taxpayers who qualified lose access to those credits under the repealed provision. The supplied text does not state the credit amounts or repeal date.

Businesses lose sales tax exemptions

Georgia repeals several sales and use tax exemptions, removing tax relief for covered purchases. The bill summary identifies film rentals, printed advertising inserts, high-tech computer equipment, data-center equipment, and certain building-related purchases. After the law’s effective date, Georgia cannot issue new exemption certificates for equipment mainly used to reduce air or water pollution. This restriction also covers repair, replacement, and component parts. Certificates issued before that date remain governed by the prior rules.

Georgia keeps larger reserves before tax relief

Georgia raises its Revenue Shortfall Reserve cap from 15% to 20% of the previous fiscal year’s net revenue. The Governor can release only reserve funds above 8% for lawmakers to appropriate, up from 4%. These rules allow larger reserves but limit access to reserve money for spending. Undesignated surplus above the 20% cap can fund tax relief only through an act of the General Assembly. These changes do not directly grant households a tax cut or payment.

Sponsors & Cosponsors

Sponsors

  • Shaw Blackmon

    Republican • House

  • Jon Burns

    Republican • House

  • Beth Camp

    Republican • House

  • Carl Gilliard

    Democrat • House

  • Matt Hatchett

    Republican • House

  • Ron Stephens

    Republican • House

Cosponsors

  • Blake Tillery

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 371 • No: 129

Senate vote • 4/2/2026

AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE

Yes: 33 • No: 20 • Other: 2

House vote • 4/2/2026

Agree to Senate Sub as Am

Yes: 104 • No: 71 • Other: 5

Senate vote • 2/12/2026

PASSAGE BY SUBSTITUTE

Yes: 32 • No: 14 • Other: 4

Senate vote • 4/2/2025

MOTION TO ENGROSS: SB 214, HB 66, HB 79, HB 129, HB 134, HB 141, HB 370, HB 397, HB 445, HB 463, HB 532, HB 586, HB 652

Yes: 31 • No: 24

House vote • 3/4/2025

PASSAGE

Yes: 171 • No: 0 • Other: 2

Actions Timeline

  1. House Date Signed by Governor

    5/11/2026House

  2. Act 465

    5/11/2026

  3. Effective Date

    5/11/2026

  4. House Sent to Governor

    4/10/2026House

  5. House Agreed Senate Amend or Sub As Amended

    4/2/2026House

  6. Senate Agreed House Amend or Sub

    4/2/2026Senate

  7. Senate Third Read

    2/12/2026Senate

  8. Senate Passed/Adopted By Substitute

    2/12/2026Senate

  9. Senate Committee Favorably Reported By Substitute

    2/10/2026Senate

  10. Senate Taken from Table

    1/12/2026Senate

  11. Senate Recommitted

    1/12/2026Senate

  12. Senate Engrossed

    4/2/2025Senate

  13. Senate Tabled

    4/2/2025Senate

  14. Senate Committee Favorably Reported

    3/28/2025Senate

  15. Senate Read Second Time

    3/28/2025Senate

  16. Senate Read and Referred

    3/6/2025Senate

  17. House Third Readers

    3/4/2025House

  18. House Passed/Adopted By Substitute

    3/4/2025House

  19. House Committee Favorably Reported By Substitute

    2/26/2025House

  20. House Second Readers

    2/19/2025House

  21. House First Readers

    2/18/2025House

  22. House Hopper

    2/13/2025House

Bill Text

  • HB 463/AP* (v10)

    PDF

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