Georgia State Income Tax Elimination
IF STATE INCOME TAX GOES TO ZERO, WHERE DOES THE MONEY COME FROM?
This page isolates the individual income-tax piece and stress-tests how much sales-tax replacement would be needed if Georgia eliminates that revenue.
Policy reference
Georgia Senate Special Committee (January 2026)
The final report recommends major income-tax relief and states it does not support increasing state sales tax rates or creating a state property tax.
Income tax revenue (FY2024)
$16B
Net individual income-tax collections baseline.
Income-tax share of major taxes
30.9%
Share of property + income + sales taxes (state+local framing).
Sales tax increase needed to replace
6.63%
Percent points above today’s assumed combined state + local rate.
Scenario controls
How much income tax is removed?
Use this slider to model partial or full elimination, then test whether a planned sales-tax increase fully replaces the removed revenue.
Income-tax removal level
100%
Revenue removed at this level: $16B
0%100%
Planned sales tax increase
6.63%
Current combined rate: 7.5% → Proposed total rate: 14.1%
0%14%
Estimated sales tax replacement
$16B
Remaining gap (missing)
$0
Surplus of $5M if over-replaced.
Committee framing
What did the January 2026 report emphasize?
- • Targets removing state income-tax liability for many lower and middle-income filers first.
- • References roughly $15.47B in CY2023 individual income-tax collections.
- • States no support for higher state sales-tax rates or a new state property tax.
Education + Healthcare
How much of state revenue goes to education + healthcare?
Using the FY2026 state-funds revenue estimate as denominator, these two agencies account for:
50.8%
Related pages
Caveat: This page uses FY2024 DOR tax baselines for replacement math. Committee-report figures quoted for CY2023 are shown as policy context and are separately sourced.