Georgia Governor Brian Kemp announced the signing of two significant tax reform bills, House Bills 111 and 112, which aim to provide special tax refunds and lower state income tax rates for residents. Kemp shared this development in a post on X.
“It’s fitting that today is the day I signed HB 111 & 112 into law, delivering on our promises to provide more tax relief to hardworking Georgians,” said Brian Porter Kemp, Georgia State Executive – Governor. “As taxpayers file their returns, they can look forward to another special tax refund this year and an even lower state income tax rate for tax year 2025.”
According to the newly signed legislation, House Bill 111 will reduce the state income tax rate from 5.39% to 5.19%, effective January 1, 2025, with further reductions planned. House Bill 112 introduces a one-time tax credit with automatic refunds up to $500 for taxpayers who filed in both 2023 and 2024. These measures are intended to alleviate the tax burden on residents and promote economic growth within Georgia.
The reduction in Georgia’s income tax rate is expected to save taxpayers approximately $880 million in the subsequent year. However, analyses suggest that about 67% of these savings will benefit the top 20% of earners, indicating that while relief is provided, it disproportionately favors higher-income households.
Over recent years, Georgia has made several changes to its income tax structure. In 2015, a corporate income tax rate of 6% was introduced. Subsequent legislation reduced both the top personal income tax bracket and the corporate income tax rate to 5.75% in 2019 and further to 5.50% in 2020. These adjustments align with efforts to enhance economic competitiveness through lower tax rates.
Kemp has served as Georgia’s governor since January 14, 2019, after beginning his political career as a State Senator in 2003 and later serving as Secretary of State from 2010 to 2018. His administration has emphasized conservative fiscal policies focused on reducing taxes and enacting business-friendly legislation.
