Bill > HB1370

This bill proposes to amend Georgia's income tax laws to exclude a portion of overtime compensation and cash tips from taxation for taxable years beginning on or after January 1, 2027. Specifically, full-time employees paid by an hourly wage will be able to exclude up to $2,500.00 of compensation for work exceeding 40 hours per week, including overtime as defined by the federal Fair Labor Standards Act of 1938, with a special provision for employees covered by the National Railway Labor Act. Additionally, individuals will be able to exclude up to $5,000.00 of cash tips, which are defined as cash received in occupations that customarily receive tips, including those paid in cash or charged, and tips from tip-sharing arrangements, provided they are voluntary and not subject to negotiation. Employers will be required to report the total amounts of overtime compensation and cash tips paid to their employees to the state on a monthly or quarterly basis, and the Department of Revenue is authorized to create rules and regulations for the administration of these new provisions. The bill also includes a provision for its effective date, setting it for July 1, 2026, with applicability to tax years beginning on or after January 1, 2027.

Budget and Finance

https://www.legis.ga.gov/legislation/73351