This summer, thousands of Georgians are receiving an unexpected gift: state tax refund checks. This is the third time in just four years that the state has sent money back to its citizens, thanks to a strong state budget.
These refunds are creating a buzz across the state, but that’s not all. State leaders are also discussing the possibility of eliminating Georgia’s income tax entirely. This article breaks down these two major developments in simple terms, so you know how they might affect you.
Tax Refunds: Who Is Getting Money and When?
So, what does this refund mean for you and your family? Governor Brian Kemp announced that the state began sending out “special refunds” in early June, and payments could continue for a couple of months, depending on how fast the postal system can deliver them.
The reason for these refunds is that Georgia raised more tax money than it needed to cover its expenses. This surplus is the result of a strong state economy, and the law (House Bill 112) passed earlier this year authorizes up to $1 billion to be returned to taxpayers.
If you filed your state tax return for 2023 and 2024 and paid state taxes last year, you’re likely to receive a refund. Here’s how much you can expect based on your family situation:
$250: For single individuals or married individuals filing separately.
$375: For heads of household (such as single parents).
$500: For married couples filing jointly.
Important: You’ll only receive the full refund if you paid at least the same amount in state taxes in 2023. If you paid less, you’ll get a smaller amount. This refund is tax-free, and the state may withhold it if you owe any money (like back taxes or child support).
The Georgia Department of Revenue (DOR) worked hard to send out most of the refunds by July 1, especially for people who filed their taxes by May 1. By the end of June, they had already sent out over $488 million. The goal is to have all the initial refunds sent by mid-August, so you might receive yours soon if you haven’t already.
If you requested an extension to file your taxes, your refund could take 6 to 8 weeks longer.
You can track the status of your refund using the Surplus Tax Refund Checker on the DOR’s website. Just enter your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), along with your 2023 federal tax information to see where your refund is.
Could Georgia Really Eliminate Its Income Tax?
While the tax refunds are exciting, there’s an even bigger conversation happening under the State Capitol’s Gold Dome: Should Georgia completely eliminate its state income tax? In July 2025, state leaders officially launched an initiative to study the possibility of getting rid of the income tax.
If this happens, Georgia would be the first state in the Southeast to make this move, following the example of other states like Florida, Texas, and Tennessee, which don’t charge an income tax. Eliminating income tax could change how the state pays for public services like schools, roads, and healthcare.
While it’s not likely to happen right away, Georgia has already been reducing its income tax rate step by step. Here’s a look at the changes:
2024: The rate dropped to 5.49%.
Early 2025: It dropped to 5.39% (thanks to a new law).
Mid-2025: The rate will drop further to 5.19% (due to House Bill 111).
2028 (if revenue grows more than 3%): The rate could automatically drop to 4.99%.
The state’s current plan is to keep lowering the tax rate, with the goal of eventually eliminating the income tax entirely. While this could have many benefits, such as more take-home pay for workers and attracting businesses, there are challenges.
The state would need to find other ways to fund public services like education and infrastructure without relying on income tax.
Georgia is making headlines with its state tax refund checks, bringing good news to thousands of residents. The state is sending out up to $1 billion in refunds, and you might be one of the lucky recipients.
Meanwhile, state leaders are also debating the idea of completely eliminating Georgia’s income tax, which could reshape how the state funds its public services.
While it might take time, Georgia is on a path to reducing its income tax rate step-by-step. Keep an eye on these developments, as they could impact your finances in the near future.
