Kemp pitches $1 billion tax rebate in final Georgia State of the State address

Gov. Brian Kemp (R-GA) used his final annual address to Georgia residents on Thursday as the platform to once again advocate sweeping tax cuts. 

The governor proposed using over $1 billion from the state’s budget surplus to send tax rebates to Georgians, amounting to $250 for individual filers and up to $500 for married couples filing jointly. And he called on lawmakers to accelerate Georgia’s planned income tax cuts, proposing a 20-basis-point reduction to lower the state’s flat tax rate to 4.99%, during his State of the State address. 

“This will be a fulfillment of my promise to the people of Georgia during my reelection campaign to lower our state income tax rate under 5%, and with the General Assembly’s passage and my signature, it will come a full three years ahead of schedule,” Kemp told members of the Georgia General Assembly. 

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The governor said he had returned more than $9.7 billion to Georgians since 2021 through rebates and cuts. This week, he also requested a $2,000 bonus for state employees, including teachers and law enforcement, saying the state’s “rainy day” reserves would remain above $10 billion, despite the expenditures. 

“Refusing to grow government, budgeting conservatively, and paying off debt aren’t flashy,” Kemp said.

If the proposals pass the legislature, as expected, it would be the fourth year in a row Kemp has sent residents an income tax rebate. 

Gov. Brian Kemp speaks during the State of the State, Thursday, Jan. 15, 2026, in Atlanta.
Gov. Brian Kemp (R-GA) speaks during the State of the State, Thursday, Jan. 15, 2026, in Atlanta. (AP Photo/Brynn Anderson)

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“As I’ve said before: that’s your money — not the government’s,” the governor told lawmakers. 

Since he took office in 2019, Kemp has become one of the most popular governors in the country and was ​​elected to lead the Republican Governors Association — a one-year position— in 2024. As his term winds down, it is unclear what his path will be, since he has ruled out a run for the Senate. Kemp has remained active in seeking to shape Georgia’s political future, however, rooting for Republican Derek Dooley to oust Sen. Jon Ossoff (D-GA) in November. 

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