You can imagine that for Georgia, being sandwiched between no-income-tax Florida to the south and no-income-tax Tennessee to the north, has been a problem. Now, Georgia’s Lt. Gov. Burt Jones is working hard to eliminate the state’s income tax, starting with the first two-thirds of income earners. In July 2025, Jones announced the creation of a committee to study eliminating the state’s income tax, announcing:
Last year alone, nine states cut individual income taxes, and three others cut corporate income taxes. In fact, among southeast states, only South Carolina currently has a higher income tax rate than Georgia. If we wish to remain the number one 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. It is vital that the Senate lead the effort to continue reducing our reliance on income taxes by examining additional ways to make significant cuts to our income tax rate, while maintaining the fiscal soundness of our state. Eliminating the state income tax is a commitment I have made to the Georgia people, and the work of this committee is a vital step to ensure I deliver on this promise.
The Senate committee has now released its report, with a plan to cut taxes, initially for 2/3 of all working Georgians. The plan’s executive summary explains:
We recommend making the first $50,000 for individuals and $100,000 for joint filers completely tax free beginning in 2027. We also recommend reducing the state income
tax rate for all other families and businesses.These proposals completely eliminate the state income tax on 2/3 of all working Georgians while drastically reducing the tax burden on everyone else.
✓ This proposal recognizes that the average Georgian is struggling financially. We’ve seen this in testimony before the committee, in news reports, and in survey data.
✓ Two-thirds of individual taxpayers would have no state income tax liability under this proposal beginning in 2027.
✓ Other families and businesses would see a significant reduction in their state income taxes with reductions planned over a period of several years to get their state income tax liability to zero.
✓ This plan benefits every working Georgian equally, but its impact will be felt most by families making less than $100,000.
✓ This proposal does not increase the sales tax nor create a state property tax, nor does it cut government services to Georgians.
✓ This proposal will allow hard working Georgians, like first responders, educators, front-line sales workers and many others, the chance to get their head above water and catch their breath.
Despite the efforts of Lt. Gov. Jones and the Georgia Senate, this isn’t enough for the editors of The Wall Street Journal, who believe that Republicans should reduce taxes on all income brackets evenly until the rate is zero. They conclude:
No doubt Mr. Jones, who is running for Governor this year, wants to avoid being cast as favoring a tax cut “for the rich.” But his unwillingness to refute the class-war attacks head-on as a candidate doesn’t inspire confidence that he’d do so as Governor.
All the more so if two-thirds of taxpayers are already off the rolls. That means only taxpayers in the upper half of the middle class would benefit from the next cut. This would also make it easier for Democrats or class-war Republicans to raise taxes because most Georgians wouldn’t be affected if rates rise.
The Peach State certainly should move toward eliminating the income tax to compete with zero-tax Florida, Tennessee and Texas. But the better way to do this is by retaining the current flat-tax structure and gradually moving the rate lower until it gets to zero.
Action Line: No matter which solution is ultimately enacted, Georgians will be happy to watch their tax burdens decline and their freedoms increase. Click here to subscribe to my free monthly Survive & Thrive letter.
