Georgia House budget favors property tax relief over income tax rebates
The Georgia House of Representatives on Wednesday proposed property tax relief instead of income tax rebates as lawmakers debate how to spend some of the state’s massive budget reserves.
Last month, Gov. Brian Kemp proposed a $1.2 billion tax rebate that would send checks of up to $500 to Georgia families as part of his amended fiscal year 2026 budget. But the House has proposed scrapping that proposal in favor of an $850 million property tax relief plan that advocates say would average about $500 for homeowners.
“This grant will mean that this year’s property tax bills will be just a little bit easier to swallow as we continue our work to eliminate property taxes on your home,” Chairman Matt Hatchett, R-Dublin, told the House Appropriations Committee.
The official word from Kemp’s office was circumspect.
“While it is our office’s practice not to comment on proposed or pending legislation out of respect for the legislative process, the governor looks forward to working alongside legislative leaders to deliver meaningful tax relief for all Georgians,” a spokesperson said in a written statement.
The House proposal is the latest sign of significant disagreement among Georgia Republicans about how to proceed with election-year tax relief.
Kemp has proposed a repeat of income tax cuts and rebates approved in recent years. His plan would reduce the income tax rate from 5.19% to 4.99%.
The governor also has proposed another round of income tax rebates from which single filers would receive up to $250, heads of household would get up to $375 and married couples filing jointly would get up to $500.
The House budget would keep Kemp’s income tax rate cut, but it would scrap another income tax rebate in favor of property tax relief. The budget includes $850 million for one-time grants to local governments for property tax relief.
The proposal mirrors property tax relief lawmakers approved in 2023. Under that plan, homeowners received an extra, one-time exemption on the value of their homes at tax time. Hatchett said it would amount to about $500 per household.
Speaker Jon Burns has made property tax relief a top priority this year. In January, he unveiled a proposal to phase out the tax on “homestead” properties — Georgians’ primary single-family residences — by 2032.
The plan could cost schools and local governments more than $5 billion in revenue. Burns’ plan allows them to repurpose existing sales taxes or charge “assessments” — charges not based on the value of the homes — to pay for services, but the details are still being worked out.
Meanwhile, Lt. Gov. Burt Jones has proposed eliminating the personal income tax altogether. That would cost the state nearly $16 billion a year, or 42% of its revenue.
Jones’ plan would rely on budget surpluses and eliminating “corporate welfare” to make up for the lost revenue.
The debate over tax relief comes as Georgia is flush with $14.6 billion in surplus and “rainy day” reserve funds. Politicians are eager to use some of it to address constituents’ concerns about the cost of living
The House is expected to vote on its amended fiscal year 2026 budget Thursday. The Senate will then produce its own version before negotiations with Kemp and the House produce a final version.
About the Author
David Wickert writes about the state budget, finance and voting issues. Previously, he covered local government and politics in Gwinnett and Fulton counties. Before moving to Atlanta, he worked at newspapers in Illinois, Tennessee, Virginia and Washington.
