Georgia Republicans Move to Eliminate Income Tax on First $100,000 for Married Couples

Georgia couples filing jointly could see their state income tax eliminated on their first $100,000 of earnings beginning in the 2027 tax year under a proposal advanced by a state Senate study committee.

The plan, approved by the Special Committee on Eliminating Georgia’s Income Tax, would also eliminate income tax on the first $50,000 earned by single filers.

The proposal lays out a six-year phase-in designed to fully repeal Georgia’s income tax by 2032.

Under the framework, the state would replace roughly $16 billion in annual income tax revenue through a series of $3 billion steps.

State Sen. Blake Tillery (R-Vidalia), chairman of the committee, said the first tranche for tax year 2027 would be partially funded by Georgia’s budget surplus.

“You know we have for years now cash-funded our bond program,” Tillery said.

“We know we’re going to move back to a bond program now as the rates start to fall. If we move back from the cash to bond program that creates the last $1 billion needed for the $3 billion needed in plan one.”

In year two, lawmakers would look to Georgia’s roughly $30 billion in tax credits to help fund the cut.

Tillery argued that trimming a small portion of those credits could deliver broad relief.

“If we are able to reduce or eliminate just 10% of those special interest credits, then we’re able to give every family in Georgia a tax break and two-thirds of them would see a tax elimination,” he said.

Later phases would rely on what Tillery described as a “multiplier effect,” with more disposable income in the hands of families driving economic growth.

“We also know that the multiplier effect on income in the hands of families who have it to spend it is much higher than the multiplier effect of putting it out as government spending,” Tillery said.

Democrats on the committee raised concerns about the impact on state finances.

State Sen. Nan Orrock (D-Atlanta) questioned whether the proposal adequately accounted for future budget pressures, including potential federal cuts.

“That was not factored into looking at the financial posture that we’re in as a state,” Orrock said.

“We are going to have needs that can be documented … about how the cuts in Washington are going to hit the state budget.”

Republican leadership defended the plan as a direct response to voter priorities.

State Sen. Jason Anavitarte (R-Dallas), the Senate majority leader, said the proposal reflects growing demand to return money to taxpayers.

“Give them their money back to spend it how they want,” Anavitarte said, adding that opposing the plan would undercut Democrats’ claims of supporting affordability for working families.

The committee approved the recommendation 6–3, with all three Democrats voting against it. No legislation has been formally introduced yet.

Georgia lawmakers are set to return to Atlanta next week to begin the 2026 legislative session, where the proposal could reemerge as a formal bill.

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