Financial Tools

As state legislatures convene across the country in 2026, a clear pattern is emerging in state and local tax (SALT) policy. Across jurisdictions, three dominant trends have taken shape: (1) efforts to eliminate or reduce individual income taxes; (2) widespread property tax relief initiative; and (3) expansion of sales tax bases to capture modern, service-driven economy. These trends reflect a shift in how states balance revenue stability, competitiveness, and political feasibility.
Several states have introduced significant income tax reduction bills during Q1 of the 2026 legislative cycle, including both immediate and phased in relief.
In Georgia, legislators are considering multiple bills to provide corporate and individual income tax relief, such as these two notable bills:
– HB 1001 would accelerate the reduction to the state’s flat income tax rate from 5.19% to 4.99% beginning in 2026.
– HB 880 would establish a longer-term framework to further reduce the income tax rate to approximately 3.99%, subject to revenue triggers.