Bill > HB826

This bill introduces an income tax exemption for overtime wages earned by full-time hourly employees in Georgia, specifically allowing workers to exclude up to $10,000 of overtime income from state taxation starting in the 2026 tax year. The bill requires employers to submit monthly or quarterly reports to the state department detailing the total overtime compensation paid and the number of employees receiving such compensation. Additionally, the department must provide a report to the Georgia General Assembly by January 31, 2028, documenting the fiscal impact of the tax exemption, with the understanding that the legislature may adjust tax rates or find alternative revenue sources if needed. The overtime income tax exemption will automatically be repealed on December 31, 2030, unless extended by the legislature. The primary purpose of the bill is to reduce the tax burden on workers who earn overtime pay, incentivize productivity, and promote economic fairness for hourly employees. The act will become effective on July 1, 2025, and apply to all taxable years beginning on or after January 1, 2026.

Budget and Finance

https://www.legis.ga.gov/legislation/71616