If you live in Georgia, there’s some genuinely good news coming out of the state capitol.

Governor Brian Kemp recently signed two new tax bills into law: House Bill 463, the Georgia Economic Growth and Tax Relief Act of 2026, and Senate Bill 33, the Homeownership Opportunity and Market Equalization Act of 2026. Together, these laws represent meaningful tax relief for Georgia residents—and depending on your situation, they may have a real impact on what you owe at the state level.

At the signing, Governor Brian Kemp shared, “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.”

Let me break these bills down for you.

House Bill 463: Lower Income Taxes and Bigger Deductions

A lower state income tax rate starting now

Georgia’s flat income tax rate is dropping from 5.19% to 4.99%, effective January 1, 2026. And that may not be the final stop. The law allows for additional annual reductions of 0.125%, potentially bringing the rate as low as 3.99% over time, contingent on the state’s economic conditions.

For context: there had been speculation that Georgia might eliminate its state income tax altogether. That didn’t happen—but a rate heading toward 3.99% is still a meaningful shift.

Larger standard deductions

The standard deduction is also getting a bump:

  • Married Filing Jointly: Increases from $24,000 to $30,000, with annual increases of $750 allowed up to a cap of $36,000
  • Single filers: Increases from $12,000 to $15,000, with annual increases of $375 up to $18,000

If you typically take the standard deduction on your Georgia return, this change may reduce your taxable income right away.

Higher dependent deductions

The deduction per dependent rises from $4,000 to $5,000, with a path to eventually reach $6,000. For families with multiple dependents, that additional relief may add up.

Expanded retirement income exclusion for those 65 and older

Starting in tax year 2027, taxpayers aged 65 and older may be able to exclude up to $70,000 of retirement income from Georgia state taxes, up from the current $65,000. If retirement income planning is on your radar, this may be worth factoring into your projections.

A temporary break on overtime and tips

For tax years 2026 through 2028, Georgia is temporarily allowing an exemption of up to $1,750 of overtime pay and cash tips from state income tax. It’s a modest provision, but one worth knowing about if either applies to you.

Senate Bill 33: A New Path to Property Tax Relief

Georgia property taxes have been rising, and this bill is designed to address that.

SB 33 creates a new mechanism called the Local Homestead Option Sales Tax (LHOST). Beginning in 2028, counties and municipalities may place this measure on local ballots. If voters approve it, the resulting sales tax revenue can only be used to offset property taxes for qualifying homeowners — it can’t be redirected elsewhere.

The legislation also makes Georgia’s existing base-year homestead exemption mandatory statewide, which had previously been optional at the local level.

Whether LHOST ends up on your county’s ballot—and whether it passes—will depend on where you live and how local governments choose to act. But the framework is now in place.

What This May Mean for Georgia Taxpayers

Taken together, these two laws reflect a sustained commitment to reducing the tax burden in Georgia. If you’re a Georgia resident, you may see:

  • A lower effective state income tax rate beginning this year
  • A higher standard deduction reducing your taxable income
  • More generous deductions for dependents and retirement income
  • A potential path to lower property tax bills at the local level in the coming years

Of course, how any of these changes actually affect your tax situation depends on your specific circumstances including your income, filing status, age, and where in Georgia you live. A conversation with your financial advisor can help you understand what may apply to you. Reach out to talk to one of our Personal Wealth Advisors today if you have specific questions about your situation.

This post is intended for informational purposes only and should not be construed as tax or investment advice. Tax laws are complex and subject to change; individual situations vary. BIP Wealth, LLC  is a registered investment advisor. Registration does not imply a certain level of skill or training.