Georgia Senate Bill 476, the Income Tax Reduction Act of 2026, cuts the state’s flat individual income tax rate from 5.19 percent to 4.99 percent, raises the standard deduction to $50,000 for single filers and $100,000 for married couples filing jointly, and sunsets all state income tax credits after 2031. Governor Kemp signed the bill on May 11, 2026, and the new rates apply to taxable years beginning on or after January 1, 2026.1Office of Governor Brian P. Kemp. Gov. Kemp Signs Legislation Lowering Taxes and Supporting Economic Growth You will see the effect when you file your 2026 Georgia return in early 2027.
The New 4.99 Percent Flat Rate
SB 476 locks Georgia’s flat individual income tax rate at 4.99 percent for taxable years beginning on or after January 1, 2026.2BillTrack50. GA SB476 That is a 0.20 percentage point cut from the 5.19 percent rate that applied in 2025.
Prior law had Georgia moving toward 4.99 percent in annual 0.10 percent steps, but only when three fiscal conditions were met: the governor’s revenue estimate for the next fiscal year exceeded the current year’s by at least 3 percent, the prior fiscal year’s net revenue beat the preceding three years, and the Revenue Shortfall Reserve held enough to cover the projected revenue loss.3Justia Law. Georgia Code 48-7-20 – Individual Tax Rates If any one failed, that year’s cut was delayed. SB 476 strips the trigger language from the code and jumps straight to the target rate, so the rate is no longer subject to annual fiscal review.2BillTrack50. GA SB476
Standard Deduction Rises to $50,000 and $100,000
Before SB 476, Georgia’s standard deduction was $12,000 for single filers, heads of household, and married taxpayers filing separately, and $24,000 for married couples filing jointly.4Justia Law. Georgia Code 48-7-27 – Computation of Taxable Net Income The new amounts are $50,000 for individual filers and $100,000 for joint filers.5Georgia Office of Planning and Budget. Fiscal Note – Senate Bill 476
This is the change that reaches the most taxpayers. A single filer with $50,000 or less in Georgia taxable income owes no state income tax at all, because the deduction wipes out the taxable base. The same is true for a joint-filing couple at $100,000. Earn more than those thresholds and the deduction still helps, because a larger slice of income is sheltered before the 4.99 percent rate applies.
A concrete example. A single filer with $75,000 in Georgia adjusted gross income has $25,000 in taxable income after the $50,000 standard deduction, producing a state tax of about $1,248. Under the old $12,000 deduction and 5.19 percent rate, the same filer would have owed roughly $3,270. Both the larger deduction and the lower rate contribute to the drop.
Georgia’s standard deduction is separate from the federal standard deduction, and the state does not automatically conform to the federal amount. The increase under SB 476 is a state-level choice, not a pass-through of any federal change.
Corporate and Partnership Rates Follow
Georgia law pegs the corporate income tax rate to the individual rate under O.C.G.A. ยง 48-7-20(a.1), so every domestic and foreign corporation pays at the same rate imposed on individuals.6Justia Law. Georgia Code 48-7-21 – Taxation of Corporations Because SB 476 sets the individual rate at 4.99 percent, corporations get the same cut without a separate provision. Electing partnerships are treated the same way.2BillTrack50. GA SB476 The corporate rate was 5.19 percent for 2025 and drops to 4.99 percent for taxable years beginning on or after January 1, 2026.7Georgia Department of Revenue. Corporate Income and Net Worth Tax
All State Income Tax Credits End After 2031
SB 476 eliminates all credits against Georgia taxable net income for taxable years beginning on or after January 1, 2032. No credit of any kind will be allowed for corporations, fiduciaries, partnerships, or individuals after that date, and Chapter 48-7A of the Georgia Code is repealed effective December 31, 2031.2BillTrack50. GA SB476
Georgia currently offers dozens of income tax credits, from film production to job creation in less-developed counties. All of them are now on the clock. If you or your business relies on a state tax credit, plan for the 2032 tax year to have none. The legislature could reinstate specific credits before the sunset lands, but the default under current law is elimination.
Insurance Premium Tax Credit Changes
SB 476 also amends Title 33, which governs insurance. Several premium tax credits and abatements are repealed or restricted.
- The state affordable housing tax credit is capped at 50 percent of the federal housing tax credit for the project, for initial applications received by the Department of Community Affairs on or after January 1, 2027. Prior law allowed the full federal credit amount.8Georgia General Assembly. Senate Bill 476 – Engrossed Version
- Insurance premium tax credits for insurers located in counties designated as less-developed areas are repealed.
- Provisions allowing abatement or reduction of insurance premium taxes are repealed.
- The insurance-related provisions of the Georgia Agribusiness and Rural Jobs Act are repealed effective December 31, 2031, matching the broader credit sunset.
These provisions mainly affect insurers doing business in Georgia. Affordable housing developers who structure deals around the state housing credit need to account for the 50 percent cap on new applications filed in 2027 or later.
Effective Dates
SB 476 took effect on July 1, 2026, and applies to taxable years beginning on or after January 1, 2026.2BillTrack50. GA SB476 Because the Georgia tax year follows the calendar year for most filers, the 4.99 percent rate and the larger standard deduction apply to all 2026 income, even though the bill was signed partway through the year. Credits remain available through tax year 2031, and the repeal takes effect for taxable years beginning on or after January 1, 2032, leaving roughly five and a half years to adjust tax planning.