ATLANTA — Georgians will see around $2 billion in tax relief after the General Assembly passed the amended state budget for 2026 fiscal year. The budget is now on Gov. Brian Kemp’s desk for him to sign.
Kemp applauded state lawmakers on Wednesday.
“Today, we saw major legislative action on my top priorities - saving taxpayers money and investing in a safer, more prosperous Georgia,” Kemp said.
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Here’s a look at the budget highlights.
GEORGIA TAX REBATES, PROPERTY TAX RELIEF
Kemp announced in his State of the State address that he would push for another round of income tax rebates for Georgians. After it was initially cut by the Georgia House, lawmakers from the House and Georgia Senate negotiated it back into the amended budget.
The $1.2 billion tax rebates would work like the previous ones: $250 for single tax filers and $500 for married couples.
“As I’ve said before: that’s your money -- not the government’s,” Kemp said during his State of the State address.
The budget will include $850 million for the Homeowner Tax Relief Grant program. The funds will go back to Georgia homeowners to help with their property taxes for 2026. It’s expected to save homeowners around $500.
In addition to signing off on the state budget, the Georgia House also passed House Bill 1001, which reduces the state income tax from 5.19% to 4.99%. Lawmakers in both chambers remain focused on other income tax bills.
SCHOOL STAFF BONUSES
There will be $366 million in bonuses for Georgia public school employees with the updated budget. All K-12 teachers, administrative staff, custodians, nutrition workers, school nurses, and bus drivers will receive a $2,000 one-time bonus.
The Georgia Department of Early Care and Learning will also receive $17.2 million for a $2,000 bonus for all its teachers and assistant teachers.
OTHER HIGHLIGHTS
- $2 billion in transportation initiatives
- $325 million endowment to establish Georgia Dreams, the state’s first needs-based scholarship fund
- Additional $12 million in funds for HOPE scholarships
- $29.8 million to establish School of Optometry at Georgia Southern University
- $150 million for Georgia Department of Corrections to address bed space
- $409 million for new Georgia Regional Hospital- Atlanta to address mental health bed capacity issues in the state
- $100 million for the Employees’ Retirement System of Georgia to support state retirees
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