The Georgia General Assembly has passed House Bill 111, which reduces the personal income tax rate. It will impact Georgia taxes and tax planning for 2025 and forward. They have also passed House Bill 112, which provides surplus tax refunds based on certain criteria. Let’s discuss what this means:
Lower Income Tax Rate
The most significant change is the reduction of the personal income tax rate effective as of January 1, 2025.
- The individual income tax rate for 2024 was 5.39%
- The tax rate for 2025 is reduced to 5.19%
Georgia will continue to reduce the personal tax rate at an increment of 0.10% each tax year until the tax rate reaches 4.99%.
Surplus Tax Refunds
Georgia is providing a one-time, non-refundable tax rebate for Georgia taxpayers who meet the criteria below:
- Must be a full-year resident of Georgia for both 2023 and 2024.
- Must have timely filing for both 2023 and 2024. This includes extensions that were filed in a timely manner.
- The rebate is limited to your 2024 tax liability.
- The filer cannot be claimed as a dependent on another’s return in 2023.
For those who are part-year or nonresident filers, a proportional rebate is available based off of the following:
- Filing status
- Percentage of income taxable in Georgia
Maximum Rebate Amounts
| Filing Status (of 2023 Return) | Maximum Rebate Amount |
| Single and Married Filing Separately | $250 |
| Married Filing Jointly | $500 |
| Head of Household | $375 |
When and where will you receive the refund?
Officials state that the refunds will potentially be issued within a 6-to-8-week period if the return has been filed by the May 1 extended deadline. Although, they will not be sent until Georgia has processed your return.
Refunds may be sent by direct deposit or check. The Department of Revenue will send the refund to your bank account or mail a check if you did not receive your most recent refund by direct deposit.
See the Frequently Asked Questions for House Bill 112 – Surplus Tax Refund.
If you have questions about how this topic will impact you, Team LittleOwl CPA is here to help. Schedule a discovery call today!
