Gov. Kemp signs tax cuts, business growth bills into Georgia law

Gov. Brian Kemp signed another round of bills Monday focused on lowering taxes and supporting economic growth.

“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,” Kemp said in a news release. “That approach has allowed us to return billions of dollars to taxpayers, and the legislation I signed today will keep that momentum going as we further lower our state income tax rate, deliver on meaningful property tax relief, and ensure job creators have the opportunity to grow and thrive in the Peach State.”

House Bill 463 lowers the state income tax rate from 5.99% to 4.99% beginning Jan. 1, 2026, and increases the standard deduction. It also raises the retirement income exclusion to $70,000 in 2027 and repeals some tax credits and sales and use tax exemptions. 

Senate Bill 33 was a priority for state House Speaker Jon Burns. The bill enacts broad property tax reform by establishing a new Local Homestead Option Sales Tax to provide homeowner tax relief.

“When Georgians across the state made clear that affordability was the number one issue they faced, Republican leadership delivered real, meaningful relief that allows hardworking taxpayers to keep more of their money where it belongs – in their pockets,” Burns said in a news. “From another historic income tax rebate and rate reduction to property tax relief and lower costs at the pump, the Georgia House was proud to champion measures delivering results when and where they were needed most.”

Here are the other 7 pieces of legislation Kemp signed Monday.

• House Bill 1129 creates guardrails for state-designated enterprise zones.
• House Bill 1185 modernizes complex corporate litigation policies and revises some standards around the Georgia Statewide Business Court.
• House Bill 328 increases the tax credit for student scholarship organizations, expands student eligibility and increases accountability measures for program providers.
• House Bill 445 expands the right of business owners in Georgia to appeal tax reassessments of certain high-value tangible personal property to a hearing officer and establishes new qualifications and procedures for officers handling appeals.
• House Bill 987 codifies a voluntary framework for independent contractors to receive portable benefits through dedicated accounts, allowing contributions without affecting their employment classification.
• House Bill 1209 establishes a limited sales and use tax exemption for construction materials used in specific developments near certain state-owned convention facilities.
• Senate Bill 111 expands the eligibility criteria for rural hospital organizations to include freestanding emergency departments and lowers indigent care thresholds.