Many Georgia residents will welcome a special payment this year. Once again, Gov. Kemp signed a bill for one-time payouts to be issued to eligible Georgians. Georgia residents are expected to receive $1 billion in disbursements.
But more than just tax refunds are on the horizon.
Another law Kemp signed addresses state income tax cuts. As Kiplinger reported, Georgia moved to a new lower income tax rate last year and will continue to cut income taxes if certain economic factors are met. However, this new law accelerates the income tax cuts, and some taxpayers may see more tax savings than others.
Here’s what you need to know about the Georgia surplus tax refund and income tax cuts in 2025.
Georgia surplus tax refund 2025
As Kiplinger has reported, Georgia has sent special tax payments to residents twice before. And this year, Georgia residents can expect another payout. Taxpayers may be eligible for a surplus tax refund if they meet the following requirements:
- Full- or part-year Georgia resident (or nonresident).
- Filing the current year’s and prior year’s state income tax returns by the May 1 deadline (or by the October extension due date, if applicable).
- Had a tax liability for tax year 2023.
How much is the Georgia tax rebate in 2025?
According to the state's Department of Revenue, Georgia tax surplus refund amounts will be as follows:
- $250 for single and married filing separate filers.
- $375 for heads of household.
- $500 for married filing joint filers.
*Note: Part-year or nonresidents will be eligible for only a proportional refund. The amount received will be the maximum amount above multiplied by the share of your Georgia taxable income.
How will I receive my 2025 Georgia rebate?
After you file your taxes, your refund will be sent automatically. The payment option you chose for your state income tax return will be reflected in your surplus rebate check. Typically, you can expect payment in 6-8 weeks if you file your state income tax return by the May 1, 2025 deadline.
Georgia tax surplus refund: Check status
You can check the status of your Georgia rebate check by using the online Surplus Tax Refund tool. To use the Surplus Tax Refund checker, you will need to provide the below information:
- Your SSN or ITIN
- The amount of your federal adjusted gross income (AGI) listed on your 2023 Georgia income tax return. This can be found on Form 500 (line 16) or Form 500EZ (line 4).
Georgia state income tax rate 2025
In addition to rebate checks, Georgia will also cut the income tax rate for 2025.
Last year, Georgia switched from a tiered income tax system, which peaked at 5.75%, to a flat income tax rate of 5.49%. In the current filing season, the rate dropped to 5.39%. And Georgia’s new income tax rate is expected to go even lower in future years.
- Each subsequent year, the rate will decrease by .10%.
- The final flat income tax rate of 4.99% is projected to be reached in 2028.
For these rate drops to occur, the state budget must meet certain economic targets, such as increasing the annual revenue estimate by at least 3%. While some claim the 3% rule was not met to warrant a 2025 reduction, Gov. Kemp has signed a bill to slash 2025’s income tax rate to 5.19% — one year ahead of schedule.
This may be better news for some more than others.
According to the Georgia Budget and Policy Institute, an income tax cut from 5.39% to 5.19% provides higher savings to wealthier individuals and lower savings to lower-income residents, with:
- $313 million going to Georgians with incomes $75,000 and up.
- $144 million going to Georgia residents with incomes of $45,000 and below.
However, total taxpayer savings for all income groups is expected to be $870 million. This tax relief will most likely come from Georgia's $11 billion budget surplus, which the Governor’s Office of Planning and Budget reported last fall.
