GA SB520: Tax Reform - Progressive Income Tax with Expanded Credits (SB520) | PolicyEngineShifts Georgia from a flat 5.19% income tax to a graduated system (2%-6%), increases standard deductions to $17,000/$34,000, creates a refundable state EITC at 20% of federal, and expands the child tax credit to $1,250 (refundable). Phase 1 (2026): Standard deduction, CTC, and EITC provisions. Phase 2 (2027): Progressive tax brackets.Key Provisions

Increased Standard Deduction: Increases the Georgia standard deduction by $5,000 for single filers and $10,000 for joint filers, with a 25% phase-out above $140,000/$280,000 AGI. ($12,000 (single) / $24,000 (joint) → $17,000 (single) / $34,000 (joint))

Enhanced Child Tax Credit: Increases the Georgia child tax credit from $250 to $1,250 per qualifying child and makes it fully refundable. ($250 per child (non-refundable) → $1,250 per child (fully refundable))

New State EITC: Creates a new Georgia state Earned Income Tax Credit equal to 20% of the federal EITC, fully refundable. (None → 20% of federal EITC (up to ~$1,650))

Progressive Tax Brackets (2027): Replaces Georgia's flat 5.19% income tax with progressive brackets: 2% on first $15,000 (single) or $30,000 (joint), 4% on next $15,000/$30,000, and 6% on income above $30,000/$60,000. Effective 2027. (Flat 5.19% rate → 2% (first $15K/$30K), 4% ($15K-$30K / $30K-$60K), 6% (above $30K/$60K))

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