Georgia taxpayers will get rebates of up to $500 this summer
Gov. Brian Kemp on Tuesday signed a state budget that includes more than $2 billion in tax relief, bonuses for teachers and state employees, and plenty of other new spending.
The amended $43.7 billion budget covers fiscal year 2026, which ends in June. Here’s what you need to know:
Income tax rebates: The budget includes $1.2 billion in income tax rebates for Georgians. Single filers will receive up to $250, heads of household will get up to $375 and married couples filing jointly will get up to $500. If legislators approve a separate bill authorizing the refund, those checks will go out later this year.
It’s the latest in a series of tax cuts and rebates legislators have approved in recent years.
Property tax relief: The budget also includes $850 million in property tax relief that will flow through local governments. The average homeowner is expected to get about a $500 reduction on their property tax bill.
Employee bonuses: State employees, teachers and other education employees will get one-time bonuses of $2,000.
Other highlights: The budget also includes plenty of other new spending. Among other things, it includes $1.7 billion for additional I-75 toll lanes in Henry County, $409 million for a new mental health hospital, $325 million for the Georgia DREAMS need-based college scholarship program and $150 million for new bed space at state prisons.
What they’re saying: Kemp and Republican leaders hailed the budget and the tax relief as evidence of their prudent fiscal management.
“We have budgeted conservatively and responsibly through some very difficult times in our state,” the governor said. “And we are reaping the benefits of that right now.”
However, Kemp again declined an opportunity to endorse Lt. Gov. Burt Jones’ proposal to phase out the individual income tax altogether. He noted the state is already on track to lower the tax rate to 4.99% this year.
“As to further lowering the tax rate, I’m fine doing that,” the governor said. “We’ve just got to tell people how we’re going to do it and make sure we don’t leave a hole in the budget.”
What’s next: Details of the tax relief, including when the state will begin distributing the money, are still to come. In the meantime, legislators are preparing a budget for fiscal year 2027, which begins in July.
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.
