LITHONIA, Ga. — Georgia’s taxes are going down, and earlier than expected.
As of Monday, the new year brought in a new tax rate, lowered from an income tax of 5.75% to 5.49%.
Gov. Brian Kemp wants that income tax level to go even lower to 5.39% for state residents.
Channel 2′s Richard Elliot spoke with a tax preparer in Lithonia to see how much money this could save Georgia families.
Tax preparers, like those at Motor City Tax Pros, have to stay on top of the changes, like the one that just lowered the income tax rate on Jan. 1.
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It could save Georgia taxpayers a few hundred dollars every year, but when lawmakers come back to the Capitol next week for the 2024 legislative session, they could drop the rate even lower.
Rhonda Conley is a tax preparer and is about to get really busy helping her customers get big refunds for the 2024 tax season.
Conley spoke to Channel 2 Action News about the drop in Georgia’s income tax rate. The legislature dropped it from 5.75% to 5.49%, which could save a family of four earning $75,000 about $650.
Last month, Kemp announced he wanted to drop the tax rate an an accelerated pace, so he’s asking lawmakers to knock it down to 5.39%.
“Thank y’all, it’s a great day to cut taxes in Georgia,” Kemp said in December when announcing the drop to 5.49%.
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If approved, the tax rate would be retroactively lowered to the first of the year, something Conley said she wholeheartedly supports.
“That’s what it means for us, and anytime you can get more money, that’s a great thing, right?” Conley said.
Even with billions of dollars in reserve, tax collections are slowing and some Democrats worry what it will do long-term to state finances.
Still, lawmakers are expected to approve the accelerated pace and make things busier for Conley’s tax business.
“Make sure you have all of your documentation, make sure that you have a tax p professional that is aware of all the tax laws and can help you get the max refund,” Conley said.
Under current law, Georgia’s income tax rate will continue to drop to 4.99% by 2029.
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