News Summary
On April 15, 2025, Georgia Governor Brian Kemp enacted two bills aimed at providing financial relief to taxpayers. The new legislation introduces a one-time tax refund of up to $500 for eligible residents and reduces the state income tax rate from 5.39% to 5.19%. These measures are part of an initiative to return over $7.6 billion to Georgians. Taxpayers can track their refunds online as part of a system designed to ease economic burdens following Hurricane Helene’s impact, extending filing deadlines for affected individuals.
Atlanta, Georgia – On April 15, 2025, Governor Brian Kemp signed two significant bills into law aimed at providing economic relief to Georgia taxpayers. House Bill 111 and House Bill 112 introduce a one-time tax refund for eligible residents and a cut in the state income tax rate.
The newly enacted tax refund program will provide eligible taxpayers with up to $500, depending on their filing status. Individual filers will receive $250, heads of household will get $375, and married couples filing jointly are set to receive $500. These refunds will be automatically issued to taxpayers who file their 2023 returns by the extended deadline of May 1, 2025, with disbursement expected within six to eight weeks following the completion of the 2024 tax returns.
Payments will be processed through either direct deposit or check, based on the method used by taxpayers when filing their returns. Notably, these refunds are classified as non-taxable income under Georgia law, and no interest will be accrued on the payments. However, the state reserves the right to deduct any outstanding debts from the rebate amounts.
Taxpayers interested in tracking their rebate status must provide their Social Security Number or Individual Taxpayer Identification Number (ITIN) alongside their federal adjusted gross income from their 2023 tax return. Although the tax refund tracking system is currently only operational for past years, updates to the system will occur nightly as the new refunds are processed.
The total cost of the tax refund initiative is estimated to be around $1 billion. Governor Kemp highlighted that the refunds are designed to return money to hardworking Georgians, emphasizing his administration’s commitment to financial relief for residents. The new tax policies also reflect a broader initiative by Kemp’s administration, which previously pledged to save or return over $7.6 billion through various methods, including income tax refunds, property tax exemptions, and the suspension of gas taxes.
In tandem with the one-time refunds, House Bill 111 will also reduce the state income tax rate from 5.39% to 5.19%. This cut is anticipated to impact state revenue significantly, resulting in an estimated $880 million reduction in the following fiscal year. However, the implications of these tax cuts have sparked differing opinions among various economic think tanks in Georgia, with some experts expressing concerns over how the changes may affect various income demographics.
The passage of these bills comes in light of an extension granted to Georgians impacted by Hurricane Helene, which shifted the tax filing deadline from the usual date to May 1, 2025. This extension allows those affected by the hurricane additional time to prepare and submit their tax returns.
Taxpayers seeking assistance with checking their refund status can visit the Georgia Tax Center or contact the state’s Department of Revenue for support. With these tax initiatives, the Georgia government aims to provide financial relief and stimulate economic activity across the state.
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