The recent Georgia Legislative Session resulted in several pieces of legislation impacting taxes and tax planning for Georgia residents. Overall, the legislation was very tax-friendly for Georgia residents and businesses. Review our summary of the legislation and how it impacts you.
Reduction in Income Tax Rate for Families
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- The income tax rate for individuals for 2023 was 5.75%
- Beginning in 2024, the tax rate is reduced to 5.39%
- An additional .10% reduction annually will begin in 2025 until the rate reaches 4.99%
Increase in Dependent Exemption
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- Recent legislation increased the dependent exemption from $3,000 to $4,000 starting January 1, 2024.
Reduction in Income Tax Rate for Businesses
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- Georgia taxable income for businesses have been aligned to the same reduced income tax on individual taxpayers (starting in 2024, 5.39%).
- This change includes the elimination of the corporate net worth tax and reduces income tax rates on companies.
- Beginning in 2025, corporate taxpayers that receive a Federal extension are given an additional month to file their corporate return.
Personal Property Tax Return Exemption Increased
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- For businesses, all tangible personal property are subject to ad valorem tax.
- Currently businesses with personal property (excluding motor vehicles, trailers or mobile homes) under $7,500 are exempt from personal property tax.
- With the passage of HB 808, the exemption increases from $7,500 to $20,000.
Rural Physician Tax Credit Expansion
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- This provision expands the Rural Hospital tax credits to include rural medical professionals allowing for a credit up to $5,000.
- The credit is limited to those qualifying by December 31, 2023 and shall apply to taxable years starting in 2024.
- The aggregate amount of tax credits allowed under this provision annually is set at $2 million per year.
If you have questions about how this topic will impact you, Team LittleOwl CPA is here to help. Schedule a discovery call today!
