Based on proposals from a special Senate committee initiated by Lieutenant Governor Burt Jones in early 2026, the primary state tax slated for reduction and eventual elimination is the Georgia personal income tax.
As part of a plan to phase out the personal income tax by 2032, Jones is pushing for significant tax changes affecting the 2027 budget year:
Massive Standard Deduction Increase (Targeted 2027): The core proposal involves raising the state's standard deduction to $50,000 for individual filers and $100,000 for married couples filing jointly.
Impact: This change is designed to effectively make the first $50,000/$100,000 of income tax-free for residents, which would eliminate state income tax liability for approximately two-thirds of Georgia workers starting in 2027.
Reduced Income Tax Rates: Under Senate Bill 477, the personal income tax rate is proposed to decrease to 4.49% for tax year 2027, following a reduction to 4.99% in 2026.
Business Tax Changes: The plan includes lowering the corporate income tax rate to 4.99%.
Elimination
of Tax Breaks: To pay for these cuts, the proposal includes
eliminating or modifying numerous tax breaks, including those for high-tech
data centers and certain insurance company investments.
These proposals are part of a broader campaign by Jones to eliminate the state income tax entirely by 2032.
For 2027, Georgia Lieutenant Governor Burt Jones is spearheading a major plan to significantly lower personal income taxes by increasing exemptions and accelerating rate reductions. As a centerpiece of his 2026 gubernatorial campaign, Jones aims to fully eliminate the state income tax by 2032.
Key Tax Changes Planned for 2027
According to the report from the Senate Special Committee on Eliminating Georgia's Income Tax, the primary changes proposed for the 2027 tax year include:
Massive Exemption Increases: Raising the standard deduction so the first $50,000 of income for single filers and $100,000 for married couples filing jointly would be tax-free.
Personal Income Tax Rate Cut: Reducing the flat individual income tax rate to 4.49% in 2027, down from a projected 4.99% in 2026.
Tax Relief Scope: The proposed increase in exemptions is estimated to completely eliminate state income tax liability for approximately two-thirds of working Georgians starting in 2027.
Broader Long-Term Tax Strategy
Beyond the immediate 2027 targets, Jones' broader fiscal platform includes:
Corporate Income Tax: Lowering the corporate rate to 4.99% as early as 2026 to remain economically competitive with neighboring states.
Property Tax Reform: Limiting year-to-year increases in home values for property tax purposes to address rising housing costs.
Offsetting Revenue Loss: To fund these cuts, the plan suggests eliminating or modifying roughly two dozen corporate tax breaks and "giveaways" while utilizing state budget surpluses.
5.19%
2025
4.99%
2026
4.49%
2027
3.99%
2028
0% 2032
Comments
I expect Burt Jones may be able to join the “no state income tax group” before 2032.
Norb Leahy, Dunwoody GA Tea Party Leader
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