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Georgia Panel Opens Review of Plan to Phase Out State Income Tax

Supporters cast the effort as a bid to match lower-tax neighbors.

Overview

  • A bipartisan Senate committee chaired by Sen. Blake Tillery held its first hearing in Atlanta on Aug. 19 to study eliminating the personal income tax and deliver recommendations by Dec. 15.
  • Lt. Gov. Burt Jones, a gubernatorial candidate, launched the panel and argues repeal would keep Georgia competitive, with testimony from Americans for Tax Reform’s Grover Norquist.
  • Democratic members, including Sen. Nan Orrock, warned repeal would strain services and shift costs, citing reduced federal support for programs such as food aid, education grants, and disaster relief.
  • Georgia’s income tax is projected to raise about $20 billion in 2026—nearly half of state revenue—and analyses find recent cuts disproportionately benefit higher earners.
  • Recent law set a 5.19% flat rate for 2025 with a path to 4.99%, and lawmakers cited neighboring moves, including a South Carolina House plan for a 1.99% flat tax, as competitive pressure.