Should Georgia Eliminate The State Income Tax?

(The Center Square) – A Georgia Senate committee will study ending the state income tax.

Lt. Gov. Burt Jones, who launched his gubernatorial bid last week, said Thursday the Senate Special Committee on Eliminating Georgia’s Income Tax will hold its first meeting later this summer.

“Last year alone, nine states cut individual income taxes, and three others cut corporate income taxes,” Jones said. “In fact, among Southeast states, only South Carolina currently has a higher income tax rate than Georgia. If we wish to remain the No. 1 state for business and keep our state competitive, we must expand on the progress made over the past four years to eliminate Georgia’s income tax.”

Two of Georgia’s neighboring states, Tennessee and Florida, do not have an income tax.

Sen. Blake Tillery, R-Vidalia, is chairing the committee.

Georgia makes about $16 billion annually from income taxes, Tillery said during a budget presentation during the 2025 session of the General Assembly.

“We can take that to zero,” he said. “But we have to decide what we want to otherwise exempt, first.”

Georgia does not tax things that other states do, including labor services. Taxing services could bring in $12.2 billion, which could “almost eliminate the income tax overnight,” Tillery said.

Lawmakers passed a bill that reduces the state’s flat income tax rate from 5.29% to 5.19% for the 2025 tax year. The state is reducing the number by 0.1% until it reaches 4.99%.

Other members of the committee are Senate Majority Leader Jason Anavitarte, R-Dallas; Sens. Greg Dolezal, R-Cumming, Ed Harbison, R-Columbus, Chuck Hufstetler, R-Rome, Steve Gooch, R-Dahlonega, John Kennedy, R-Macon, Nan Orrock, D-Atlanta, Michael “Doc” Rhett, D-Marietta, Larry Walker, R-Perry, and Sen. Sam Watson, R-Moultrie.