Georgia House Replaces Governor's Income Tax Rebate with Property Tax Break

House lawmakers approve $42.3 billion budget with one-time tax relief grant for homeowners instead of income tax rebate

Feb. 6, 2026 at 9:15am

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Georgia House lawmakers have replaced the governor's proposed income tax rebate with a one-time tax break for homeowners. The House's revised $42.3 billion budget plan sets aside about $850 million for a homeowner tax relief grant program that would give back an average of $500 to homeowners, rather than the governor's proposed $250-$500 income tax rebates.

Why it matters

The House's move to prioritize property tax relief over income tax rebates reflects a shift in Republican priorities, as the GOP leadership pushes to completely eliminate local property taxes for homeowners - a major source of revenue for cities, counties and schools. This sets up a potential clash with the governor, who has proposed a more cautious approach to reducing the state's income tax.

The details

The House budget plan overwhelmingly passed with a 167-to-5 vote and now heads to the Senate, where lawmakers will likely want to make their own changes. While the governor determines the overall budget size, lawmakers can move money around within it to fit their priorities. The House's top budget writer, Rep. Matt Hatchett, said the property tax grant 'will reduce next year's tax bills for homeowners' as part of the GOP's broader plan to eliminate local property taxes.

  • The House's revised $42.3 billion budget plan was approved on Thursday, February 6, 2026.
  • The current budget year wraps up at the end of June 2026.

The players

Brian Kemp

The governor of Georgia who had proposed an income tax rebate program instead of the House's property tax relief plan.

Matt Hatchett

A Republican state representative and the House's top budget writer, who said the property tax grant 'will reduce next year's tax bills for homeowners.'

Jason Anavitarte

The Senate Majority Leader, who said the Senate GOP is prioritizing a proposal to eliminate the state's income tax.

Carolyn Hugley

The House Minority Leader, who said Democrats are still evaluating the GOP's broader property tax plan and want to ensure it provides relief for 'individual families and communities, schools, cities and counties.'

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What they’re saying

“This grant will reduce next year's tax bills for homeowners, and we will continue to work to eliminate property taxes on your home.”

— Matt Hatchett, Republican state representative and House's top budget writer

“I think ours is the clearest to sell, is the most understandable and it directly provides relief more immediately than I think some of the other proposals going on around the building. And I think Georgia citizens want us to act very quickly.”

— Jason Anavitarte, Senate Majority Leader

“Right now, the House is saying property tax relief, the Senate is saying income tax relief. We've got to wait to see what comes back and see what direction we're going to go in. I think that this measure is so important that we cannot be hasty and we cannot yield to whatever the politics of the day are, because behind those proposals are individual families and communities, schools, cities and counties that are looking to us to take care of.”

— Carolyn Hugley, House Minority Leader

What’s next

The House's revised budget plan now moves to the Senate, where lawmakers will likely make their own changes before sending it back to the House for final approval. A bill to eliminate Georgia's income tax is also expected to be filed in the coming days.

The takeaway

The clash between the House's property tax relief plan and the governor's income tax rebate proposal highlights the ongoing debate within the Republican party over the best approach to providing tax relief for Georgians. The outcome could have significant implications for state and local budgets, as well as the tax burden on individual families and businesses.