Bill > HB880

This bill proposes several changes to Georgia's income tax laws, primarily aimed at reducing the tax burden on individuals and increasing certain deductions and exclusions. Starting in 2025, the state income tax rate will gradually decrease annually until it reaches 3.99%, though these reductions can be delayed if certain economic conditions are not met, such as insufficient revenue growth or low balances in the Revenue Shortfall Reserve, which is a fund set aside for unexpected decreases in state revenue. Beginning in 2027, the deduction allowed for dependents will increase annually until it reaches $6,000 per dependent, and the standard deduction for individuals will also see gradual increases, with higher amounts for married couples filing jointly, until they reach $36,000 and $18,000 respectively; these increases are also subject to delays based on economic indicators. Furthermore, for individuals aged 65 and older, the amount of retirement income that can be excluded from state taxable income will increase to $70,000 annually, up from the current $65,000 limit for those meeting specific eligibility criteria. The bill also increases the maximum percentage of net revenue that can be held in the Revenue Shortfall Reserve from 15% to 20%, and any surplus funds exceeding this 20% threshold may be used for tax relief.