Georgia employees may see a change in the amount of Georgia income tax withholding from their paycheck beginning in January, 2019

by

On March 1, 2018, the Georgia General Assembly adopted HB 918 which may reduce income taxes payable by individuals subject to taxation in Georgia.

Some major features of the bill are as follows:

  • Reduction in Top Individual Income Tax Rate. HB 918 includes a two-phased reduction in the top individual income tax rate. In 2018, the top rate of 6 percent applied to income above $7,000 for an individual and above $10,000 for a married couple filing jointly. The bill lowers that rate to 5.75 percent in 2019 and 5.5 percent in 2020. The second step down to 5.5 percent would require a joint resolution by Georgia lawmakers and the governor during the 2020 legislative session.
  • Doubling of Georgia’s Standard Deduction. HB 918 doubles the standard deduction for individuals to $4,600 from $2,300 for a single taxpayer and to $6,000 from $3,000 for a married couple filing jointly.