Georgians will owe less in income taxes this year and will get a chance in November to vote to cap increases in how homes are valued for property taxes. Gov. Kemp signed measures Thursday cutting income taxes by a projected $700 million on residents and businesses. The income tax cuts are retroactive to Jan. 1.
Under the 2022 law that created the flat income tax, the tax rate is supposed to drop 0.1% annually until it reaches 4.99% if state revenues hold up. One bill signed by Kemp accelerated the decrease, lowering the tax rate to 5.39% this year. That’s projected to save taxpayers an additional $360 million, on top of the $800 million in revenue the state is projected to forgo as part of the already-enacted cut.