Georgia Lawmakers Explore Income Tax Elimination Without New Taxes

Efforts to abolish Georgia’s state income tax gained momentum in a recent Senate committee meeting, where lawmakers emphasized their commitment to avoiding new taxes on necessities like groceries and housing. Sen. Blake Tillery, a Republican from Vidalia and chair of both the Senate Appropriations Committee and the committee studying the potential tax elimination, led the discussions on September 18, 2025.

Tillery secured consensus among committee members to refrain from imposing additional taxes on property or grocery sales, as well as any increases to the gasoline tax. This decision reflects a broader challenge facing Georgia lawmakers: to eliminate the 5.19% income tax while still funding essential government services.

In the meeting, legislators heard testimonies from officials in other states that have successfully eliminated or are in the process of eliminating income taxes. These states often rely heavily on sales taxes, which can disproportionately affect lower-income households. J. Ben Watkins, the director of bond finance in Florida, shared insights that highlighted the state’s reliance on a 6% sales tax, which accounts for approximately $50 billion of its general revenues.

Watkins noted that the absence of an income tax has spurred significant population growth in Florida, driving both sales tax revenue and economic expansion. “People have flocked to the state—remote working, second homes, retirees,” he stated. “What is our secret to success in Florida? Warm climate and low taxes.”

Contrasting this perspective, Sen. Nan Orrock, a Democrat from Atlanta, cautioned that sales taxes often impose a heavier burden on low-income earners compared to an income tax. She raised concerns about equity in taxation, emphasizing the need to consider the impacts on vulnerable populations.

Adding to the discussion, Sarah Hicks, a former budget director for Texas Governor Greg Abbott, argued that the absence of an income tax can attract businesses, leading to job creation and economic growth. “I think people go where jobs are, and they go where they know what to expect,” she remarked. Hicks indicated that about half of Texas’ revenue is derived from its sales tax.

Earlier in August, noted anti-tax advocate Grover Norquist recommended a gradual approach to income tax elimination, starting with incremental reductions. Georgia has already begun this process, with the General Assembly voting to decrease the income tax rate from 6% to 5.75% in 2022, followed by a further reduction to 5.19% this year.

Following the latest committee meeting, Tillery confirmed that the next session will take place in mid- to late-October, where further discussions on the implications of eliminating the income tax will continue. The outcome of these deliberations could significantly reshape Georgia’s tax landscape and economic future.

This article is published through a partnership with the Capitol Beat News Service, a project of the Georgia Press Educational Foundation.