Georgia Proposes Dramatic Income Tax Cut for Families Under $100K

New plan would eliminate state income taxes for middle-class Georgians, but raise taxes on data centers, affordable housing, and yachts.

Published on Feb. 9, 2026

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Georgia Senate leaders have unveiled a proposal to dramatically increase the amount of income exempt from state taxes, raising the standard deduction to $50,000 for individuals and $100,000 for married couples. The plan would also lower the state's income tax rate from 5.19% to 4.99%. To fund the tax cuts, the proposal would eliminate or reduce a variety of tax breaks, including for data centers, low-income housing, and boat owners.

Why it matters

This proposal is the latest effort by Georgia lawmakers to prioritize affordability and cost of living for middle-class residents. However, critics argue that eliminating certain tax breaks, such as the affordable housing credit, could ultimately harm more Georgians than the income tax cuts would help.

The details

The plan calls for increasing the standard deduction to $50,000 for individuals and $100,000 for married couples, up from the current $12,000 and $24,000 respectively. The state's income tax rate would also drop from 5.19% to 4.99%. To fund these cuts, the proposal would eliminate or reduce a variety of tax breaks, including for data centers, low-income housing projects, small businesses in rural areas, life insurance companies, personal protective equipment manufacturers, medical equipment makers, low-emission vehicles, cigarette exporters, and boat owners.

  • The income tax legislation, Senate Bill 476, passed the Senate Finance Committee on Monday, February 9, 2026.

The players

Blake Tillery

Republican Senator and Chairman of the Senate Appropriations Committee, who unveiled the tax cut proposal.

Harold Jones II

Democratic Senate Minority Leader, who expressed concerns that the tax breaks being eliminated, such as the affordable housing credit, could harm more Georgians than the income tax cuts would help.

Senate Bill 476

The legislation that would implement the proposed income tax cuts and elimination of tax breaks.

Senate Bill 477

An alternate proposal introduced by Senator Tillery that would focus on reducing the income tax rate without eliminating tax breaks.

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What they’re saying

“Families in the middle class right now are having a hard time paying for gas, groceries, childcare. What the Senate's plan does instead is completely eliminates their income tax liability for families making less than $100,000.”

— Blake Tillery, Republican Senator and Chairman of the Senate Appropriations Committee (The Current GA)

“The problem with the bill is very simple: It's going to create tax hikes. It's going to create job loss. This bill decimates the middle class. It really has severe consequences.”

— Harold Jones II, Democratic Senate Minority Leader (The Current GA)

What’s next

The income tax legislation, Senate Bill 476, must still pass the full Georgia Senate and House before being signed into law by the governor.

The takeaway

This proposal represents a significant effort by Georgia lawmakers to provide tax relief for middle-class families, but critics argue that the elimination of certain tax breaks could ultimately do more harm than good. The debate over the best approach to balancing affordability and government funding will likely continue as the legislation moves forward.