Georgia State Tax Updates

Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Georgia.

March 26, 2026

Georgia Income Tax Elimination Proposal Raises Key Concerns

Authored by: Kiana McGowan, CPA and Katie Nguyen, CPA

On March 20, 2026, Governor Brian Kemp signed HB 1199 into law, updating Georgia’s reference to the Internal Revenue Code. Georgia is a static conformity state, meaning it adopts federal tax law as of a fixed date rather than automatically following federal changes as they occur. Under HB 1199, Georgia’s conformity date moves to January 1, 2026.

Although Georgia advanced its conformity date, HB 1199 continues and reaffirms several longstanding Georgia decoupling positions that were also reflected in the prior conformity update bill, HB 290. Specifically, Georgia continues to decouple from:

Bonus depreciation under IRC Section 168(k),
Research expenditure rules under IRC Section 174 (Georgia generally retains pre-TCJA treatment rather than federal capitalization changes),
Certain accelerated depreciation and expensing provisions within IRC Section 168 and related depreciation provisions.

HB 1199 also decouples Georgia from federal provisions, excluding overtime pay and tipped wages from taxable income.

Please find the full copy of the bill here.

If you have questions about state conformity to the IRC, please reach out to a member of the Withum SALT Team.

February 11, 2026

Georgia Income Tax Elimination Proposal Raises Key Concerns

Authored by: Bonnie Susmano, JD, MBA and Emilia Jarrin 

A Georgia special legislative committee has proposed eliminating the state personal income tax by 2032, but the proposal lacks detail on how the state would replace a revenue source that currently makes up about half of Georgia’s annual tax collections. While current budget surpluses may soften the immediate impact, permanently removing the income tax would force lawmakers to consider higher rates on other taxes, broader tax bases, or the creation of entirely new taxes in the future. Revenue shortfalls could weaken Georgia’s image as a predictable and business-friendly state.

In addition to revenue risks, the proposal raises significant administrative challenges. Georgia’s personal income tax system correlates to federal tax law, making it efficient to administer and enforce. Eliminating it would require the Department of Revenue to shift resources toward other taxes, invest in new personnel and systems, and issue new guidance, increasing compliance and audit burdens for businesses. Reduced state revenue could also shift financial pressure onto local governments, potentially leading to higher local taxes.

If you have questions about state personal income taxes, please reach out to a member of the Withum SALT Team.

June 3, 2025

Georgia Court of Appeals Upholds Ruling in Uber Techs., Inc. v. O’Connell

Authored by: Bonnie Susmano, JD, MBA and Jessie Racioppi, MSA

On May 1, 2025, the Georgia Court of Appeals upheld the Superior Court’s ruling that Uber Technologies, Inc. is liable for approximately $9M of sales tax for 2012 through 2015. Uber argued that it is an online marketplace and does not sell taxable transportation services. The Court determined under the “headquarters operators” section of the taxicab regulations that Uber is required to collect and remit Georgia sales tax. The Court also dismissed Uber’s claim that the regulation only applies to the taxicab industry and should not be applicable.

If you have questions about the taxability of services, please reach out to a member of the Withum SALT Team.

May 13, 2025

Georgia Announces Tax Rate Changes Effective July 1, 2025

Authored by: Courtney Easterday, MSA and Joe Petrucci

The Georgia Department of Revenue announced county sales tax rate changes effective July 1, 2025. Clinch County will end its 1% Special Purpose Local Option Tax, reducing its total rate to 7%. Stewart and Telfair Counties will each add a 1% Special Purpose Local Option Tax, raising their respective rates to 8%. Thomas and Washington Counties will impose a 1% Single Purpose Local Option Property Tax, increasing the total rate to 8% in Thomas County and 9% in Washington County.

If you have questions about local sales and use tax rates, please reach out to a member of the Withum SALT Team.

April 29, 2025

Georgia’s New Law Lowers Corporate Income Tax Rate, Contingently Phases in Additional Tax Rate Reductions

Authored by: Katie Nguyen, CPA and Brandon Spinella

On April 15, 2025, Georgia Governor Kemp signed HB 111, reducing the State’s corporate income tax rate from 5.39% to 5.19%, effective for tax years starting on or after January 1, 2025. HB 111 allows for further 0.1% corporate tax rate reductions tied to revenue goals beginning on or after January 1, 2026. HB 111 allows Georgia to reduce its corporate income tax rate to 4.99% based on tax collections.

If you have any questions about state tax rate changes, please reach out to a member of the Withum SALT Team.

March 10, 2025

Georgia’s Updated Regs Allow Certain Affiliated Corporations to Elect Consolidated Income Tax Filings

Authored by: Bonnie Susmano, JD, MBA and Joe Petrucci

The Georgia Department of Revenue updated its corporate income tax regulations to align with 2022 legislation (H.B. 1058) that allows certain affiliated corporations in Georgia to elect to file consolidated income tax returns. The election is irrevocable and remains in effect for five years between the Department and the electing corporate group. The revisions clarify the process for electing or ending the election and outline how to calculate the corporate tax liability. These changes apply to taxable years starting on or after January 1, 2023.

If you have questions about Georgia’s consolidated filing election, please reach out to a member of the Withum SALT Team.