Georgians are starting to see their $250, $375 and $500 state income tax rebates show up in their bank accounts.
The rebates come thanks to a giant tax surplus the state saw because of the booming economy during fiscal 2022, which ended June 30.
A similar rebate was sent out out last year. It started going out shortly before Gov. Brian Kemp faced voters in the Republican primary.
State lawmakers gave overwhelming final approval to this year’s rebate in March during the 2023 General Assembly session, and Kemp, who proposed it, quickly signed it into law.
“Georgia is once again in a position to issue surplus tax refunds thanks to years of responsible, conservative budgeting and because we chose to protect both lives and livelihoods during the pandemic,” the governor said Monday. “We on the state level are doing what we can to return money back where it belongs — in taxpayers’ hands.”
After all the bills were paid and agencies returned leftover funds, the state’s surplus for fiscal 2022 was a record $6.6 billion.
Under the income tax rebate legislation, Georgians who filed tax returns for the 2021 and 2022 tax years are receiving up to $250 rebates if single-filing. Head-of-household filers are getting up to $375 and couples filing jointly up to $500.
Georgians who didn’t owe state income taxes — such as seniors living on pensions and/or Social Security — won’t’ receive the rebates.
For instance, under Georgia law, taxpayers from ages 62 to 64 can exclude up to $35,000 of their retirement income — from pensions or investments — on their state return. Taxpayers who are 65 or older can exclude up to $65,000 per person on their returns. Social Security benefits also aren’t taxed.
The state Department of Revenue estimates the rebates this year should be out by July 1.
“Our department successfully issued the majority of refunds (last year) by July of 2022, and we plan to build on that success this year,” State Revenue Commissioner Frank O’Connell said.
Under the midyear budget Kemp signed in March, homeowners will also receive an extra one-time exemption on the value of their homes at tax time this year, a move that the governor said would save those Georgians, on average, about $500. That too is due to the state surplus.
The state is not expected to run as large a surplus this fiscal year, so it’s unclear whether the rebates will continue in 2024. Revenue collections were off 3% in March, and state officials are expecting an even bigger decline in April, in large part because declines in stock markets last year mean capital gains income taxes will be far below what they were in 2022.
Credit: Bob Andres
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