25 LC 59 0136
House Bill 826
By: Representatives Miller of the 62
nd
, Park of the 107
th
, Smith of the 18
th
, Frye of the 122
nd
,
and Werkheiser of the 157
th
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
1
relating to the imposition, rate, computation, exemptions, and credits for state income tax,2
so as to exclude up to $10,000.00 of overtime wages per employee from taxation; to provide3
for reporting by employers; to provide reporting by the department to the General Assembly;4
to provide for a sunset date; to provide for related matters; to provide for a short title; to5
provide for legislative purpose; to provide for an effective date and applicability; to repeal6
conflicting laws; and for other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
This Act shall be known and may be cited as the "Overtime Income Tax Exemption Act."10
SECTION 2.11
The purpose of this Act is to reduce the tax burden on workers who earn overtime pay,12
incentivize productivity, and promote economic fairness for hourly employees.13
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SECTION 3.
14
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the15
imposition, rate, computation, exemptions, and credits for state income tax, is amended in16
subsection (a) of Code Section 48-7-27, relating to the computation of taxable net income,17
by deleting "and" at the end of paragraph (14), by replacing the period at the end of18
paragraph (15) with "; and", and by adding a new paragraph to read as follows:19
"(16)(A) Up to $10,000.00 of income received by a full-time hourly waged employee
20
as compensation for work performed in excess of 40 hours in a week, provided that21
such income is included in the taxpayer's federal adjusted gross income and, but for this22
paragraph, would be subject to taxation by this state.23
(B) For the tax year beginning on January 1, 2026, and each tax year thereafter, each24
employer shall submit to the department, on forms prescribed by the department, the25
total amount received by full-time hourly waged employees as compensation for work26
performed in excess of 40 hours in a week, the total number of employees for which27
such compensation was paid, and additional information as may be required by the28
commissioner to effectuate this paragraph. Such data shall be provided monthly or29
quarterly and shall be due no later than the due date for the corresponding monthly or30
quarterly withholding tax returns.31
(C) No later than January 31, 2028, the department shall submit a report to the General32
Assembly documenting the fiscal impact of the income tax exemption provided in33
subparagraph (A) of this paragraph. The General Assembly may adjust tax rates or34
identify alternative revenue sources to address revenue shortfalls resulting from such35
exemption and modify or extend such exemption at any time before the repeal of this36
paragraph.37
(D) This paragraph shall stand repealed and reserved on December 31, 2030."38
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SECTION 4.
39
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years40
beginning on or after January 1, 2026.41
SECTION 5.42
All laws and parts of laws in conflict with this Act are repealed.43
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