summary
Introduced
02/20/2026
02/20/2026
In Committee
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 the imposition, rate, computation, exemptions, and credits for state income tax, so as to exclude tips from taxation; to provide for reporting by employers; to provide for a definition; 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 amends Georgia's income tax laws to exclude tips from state taxation, meaning individuals will no longer have to pay state income tax on tips they receive, provided that this income is reported on their federal tax return. To implement this change, employers will be required to report the total amount of tips received by their employees to the state's Department of Revenue, with specific reporting deadlines and formats outlined, starting with annual reporting for the 2026 tax year and transitioning to monthly or quarterly reporting thereafter. The bill also defines "tips" broadly to include cash tips, electronic payments, non-cash tips, and tips from tip pools, but specifically excludes mandatory service charges or automatic gratuities. This new provision will take effect on July 1, 2026, and apply to all tax years beginning on or after January 1, 2026.
Sponsors (5)
Carter Barrett (R)*,
Mitchell Horner (R)*,
Holt Persinger (R)*,
Jason Ridley (R)*,
Jordan Ridley (R)*,
Last Action
House Hopper (on 02/20/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.ga.gov/legislation/73470 |
| BillText | https://www.legis.ga.gov/api/legislation/document/20252026/243429 |
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