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GA SB520

GA SB520
State Income Tax Rates; revise; Code Section 20-2A-4; repeal and reserve

summary

Introduced
02/17/2026
In Committee
02/18/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, exemptions, and credits relative to state income taxes, so as to revise income tax rates; to repeal itemized nonbusiness deductions and revise standard deductions; to revise the child tax credit; to provide for an earned income credit; to repeal tax credits for contributions to student scholarship organizations; to amend Code Section 48-11-2 of the Official Code of Georgia Annotated, relating to excise tax imposed, rates for tobacco and vaping products, exemptions, collection and payment, and tax separately identified, so as to revise tax rates for cigars, loose or smokeless tobacco, consumable vapor products, vapor devices, and cigarettes; to amend Chapter 2A of Title 20 of the Official Code of Georgia Annotated, relating to student scholarship organizations, so as to repeal and reserve Code Section 20-2A-4, relating to list of student scholarship organizations to be provided to the General Assembly; to repeal a penalty regarding noncompliance by student scholarship organizations; to provide for effective dates and automatic repeals; to provide for conforming changes; to provide for definitions; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

AI Summary

This bill revises Georgia's state income tax structure by implementing a new tiered tax rate system for individuals starting in 2027, with rates of 2%, 4%, and 6% based on income brackets for single filers and married couples filing jointly. It also increases the standard deduction amounts for both categories of taxpayers and eliminates the option for itemized nonbusiness deductions. For corporations, the income tax rate is set at a flat 6%. The bill significantly increases the child tax credit to $1,250 per qualifying child, effective for tax years beginning on or after January 1, 2026, and introduces a new tax credit equivalent to 20% of the federal earned income tax credit, which will be refundable if it exceeds the taxpayer's liability. Additionally, the bill repeals tax credits for contributions to student scholarship organizations and revises excise tax rates on tobacco and vapor products, including a substantial increase in the tax on cigarettes and a new tax structure for cigars, loose or smokeless tobacco, and vapor products based on a percentage of wholesale cost or a fixed rate with annual inflation adjustments.

Committee Categories

Budget and Finance

Sponsors (20)

Last Action

Senate Read and Referred (on 02/18/2026)

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