HB 880 Vote Explainer: Income Tax Cuts

July 4, 2026

Quick Take

Governor Kemp is known for saying that "you don't make long-term cuts with one-time money", and that is exactly what HB 880 did. Since the Senate did not take up HB 880, the language was inserted into HB 463, which I also voted against.

Why It Matters

Income taxes in Georgia fund around 50% of the state budget. While cuts to that can have some stimulative effects, cutting too much puts critical state services at risk and disproportionately benefit the wealthiest Georgians. At a time when many of our friends & neighbors are struggling with healthcare access and rising costs, should we be cutting taxes for those who are doing just fine?

Key Facts

HB 880:

  • Sets a new flat income tax rate of 3.99%.
  • Removes all threshold requirements for reaching that rate. In other words, cuts happen whether the state can afford it or not.
  • Increases standard deductions when calculating income taxes.
  • Authorizes the Legislature to utilize the Revenue Shortfall Reserve fund to balance the budget.

My Perspective

Income taxes are only a part of the overall taxes paid by Georgia residents. Georgia funds state and local governments with consumption taxes (sales & excise taxes), which are regressive. Lower income people pay more of their incomes on necessities, and those necessities are taxed, meaning lower income households spend more of their income on consumption taxes.

A progressive income tax system - where higher earners pay a higher percentage - would serve to balance the overall tax share, but Georgia has a flat income tax. This means that overall, higher income households pay a lower percentage of their income in taxes.

Along with other GOP tax proposals, HB 880 would make the rich richer, the poor poorer, and threaten funding for state services that our most vulnerable neighbors depend on.

House Bill 880 was not picked up by the Senate, but much of it was inserted into HB 463 on the last day of the 2026 legislative session.

Related Legislation

HB 880

Income tax; reduce tax rate that may be reached under certain conditions

View Bill ->

HB 463

Income tax; revise state income tax rate, deductions and tax relief provisions

View Bill ->
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