Insight

A Guide to Georgia’s 2025 Tax Legislation Changes

New tax laws hope to address past criticisms with Ga. agencies

American flag new tax law signed pen
GS

Greg Sirico

March 20, 2025 03:30 PM


How Georgia handles its taxes will never be the same.

As new tax laws passed in Georgia’s 2024 legislative session take effect this year, the financial landscape for local governments and taxpayers is rapidly changing.

Georgia taxpayers have several newly enacted regulations to consider in 2025, such as HB 581 and SB366, when discussing income and property taxes.

Additionally, another new Georgia law establishes a new tax court that allows the Department of Audits and Accounts to examine the state's current tax benefit structure and comparatively review its performance against its initial intention.

As we look closer at some tax-based laws coming into effect in Georgia this year, let’s explore how these provisions are expected to shake up state legal operations in 2025.

House Bill 581 Transforms State Property and Sales Taxes

Passed in April 2024, HB 581 introduces significant reforms to Georgia’s property and local sales tax systems, with the power to impact jurisdictions across the state.

Key provisions of the legislation include the authorization of a statewide floating homestead exemption applicable to all local governments, with an opt-out option that must be completed by March.

The bill also revises regulations related to tax estimates, the three-year lock, sales ratio studies, and settlement conference processes.

Additionally, it simplifies the local sales tax cap and establishes a new category of local sales tax aimed at providing property tax relief.

In 2025 and beyond, local sales tax limits will be restricted to 2%, despite several options to circumvent the limit, including penny costs for sectors such as transportation, education and other municipalities.

The value of a homestead, or an individual's current residence, is not expected to increase more than each year's inflation rate, creating new avenues for local sales tax that will likely aid in collecting property taxes.

According to the Georgia Municipal Association, this new option seeks to provide sales tax flexibility throughout the state.

Municipalities and local government representatives say the bill will address and consolidate county commissions, officials and elected leaders such as council members or mayors who can alter tax rates.

Senate Bill 366 Aims for Accountability

The "Tax Expenditures Transparency Act of 2024,” or Senate Bill 366, creates measures to enhance transparency and accountability in Georgia’s tax expenditure practices.

Under the new law, at least 12 economic analyses of tax expenditures will be conducted annually, with priority given to those nearing expiration within two years or with costs exceeding $20 million.

The bill also mandates comprehensive summaries of tax expenditures in the governor’s budget and requires annual reviews by legislative committees.

Additionally, evaluations will involve input from key stakeholders, including economists and business leaders, to ensure a thorough analysis.

The law states that legislators must have sufficient time to read and review appropriations bills, now allocating at least 24 hours after an amendment has been introduced.

Budgeting reports provided by the governor’s office must be made available promptly, and include a list of all existing revenue sources, the net revenue estimates from each source, and a tax expense summary.

To further support the trend of transparency, all audits will be made publicly available on the Department’s website each fiscal year and vetted by independent auditors.

By implementing these provisions, the legislation aims to strengthen oversight and improve the accountability of Georgia’s tax system.

Creating a New Tax Court

Since receiving full voter approval in November 2024, the Georgia State Tax Court has been established to tackle all tax-specific legal matters.

Under this recently enacted legislation, the tax court will reside in the state government’s judicial branch and fully replace the Georgia Tax Tribunal, a longstanding fixture of the executive branch.

The newly formed tax court will predominantly rule on tax cases between businesses operating throughout the state and the Georgia Department of Revenue, serving as an appellant court.

Prior to the court’s formation, all appeals and tax-related grievances were sent through the Fulton County Superior Court, which is not an appellant court.

Like the Georgia Tax Tribunal, Gov. Brian P. Kemp will appoint all presiding judges. Their appointments will be subject to a majority vote in both the state Senate and House judiciary committees.

Simpler, Smoother, Faster

Georgia’s new laws hope to address past criticisms with tax agencies across the Peach State, from streamlining financial reporting and simplifying tax exemptions to strengthening transparency.

The formation of the Georgia State Tax Court is a primary example of the state’s renewed focus on more efficient tax dispute resolutions.

Although fresh and untested, this set of tax-based reforms aims to create a more equitable and accountable tax system for all.

Georgia state residents and business owners should remain aware of reforms to properly adapt to an evolving tax framework.

Headline Image: Adobe Stock/ Negro Elkha, istock.com/kyoshino

Related Articles

"Lawyer of the Year"


James A. Trigg LOTY

James A. Trigg

IN PARTNERSHIP

Georgia's Protector


by Justin Smulison

As one of the nation’s leading brain injury authorities, Adam Malone’s legal accomplishments continue to benefit Georgia’s public and its legal community.

Lawyer sitting in a chair with a book posing for photo

"Lawyer of the Year"


Lawyer wearing suit poses for headshot

Ed Snow

Commercial Finance Law

Atlanta, GA

2024

Georgia Proposes Law Requiring Parental Consent for Minors on Social Media


by Gregory Sirico

With data collection on the rise, Georgia lawmakers are currently petitioning for Senate Bill 351, which would require a user's age before social media use.

Teenager with hood on using phone as notifications pop up

Trending Articles

Introducing the 2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore


by Jennifer Verta

This year’s awards reflect the strength of the Best Lawyers network and its role in elevating legal talent worldwide.

2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

Is Your Law Firm’s Website Driving Clients Away?


by Jamilla Tabbara

Identify key website issues that may be affecting client engagement and retention.

Phone displaying 'This site cannot be reached' message

A Guide to Workers' Compensation Law for 2025 and Beyond


by Bryan Driscoll

A woman with a laptop screen reflected in her glasses

Best Lawyers Launches CMO Advisory Board


by Jamilla Tabbara

Strategic counsel from legal marketing’s most experienced voices.

Group photo of Best Lawyers CMO Advisory Board members

Common Law Firm Landing Page Problems to Address


by Jamilla Tabbara

Identify key issues on law firm landing pages to improve client engagement and conversion.

Laptop showing law firm landing page analytics

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

New Employment Law Recognizes Extraordinary Stress Is Everyday Reality for NY Lawyers


by Bryan Driscoll

A stressed woman has her head resting on her hands above a laptop

Turn Visitors into Clients with Law Firm Website SEO That Converts


by Jamilla Tabbara

Learn how to create high-converting law firm landing pages that drive client engagement and lead generation.

Laptop screen displaying website tools to improve client conversion rates

SEO for Law Firms: Overcoming Common Challenges


by Jamilla Tabbara

Tackle common SEO challenges and take the next step with our guide, How to Make Your Law Firm Easier to Find Online.

Graphic image of a phone displaying SEO rankings, with positions 1, 2 and 3 on the screen

6 Steps to Finding the Right Keywords for Your Legal Content


by Jamilla Tabbara

Follow a practical guide to keyword research and boost your law firm’s SEO to reach more potential clients.

 letters symbolizing keywords for legal content

Is Your Law Firm Missing Key Client Acquisition Opportunities?


by Jamilla Tabbara

Discover our free resource to identify ways to stand out and attract more clients.

Arrows and light bulbs rising, symbolizing growth and client acquisition opportunities for law firms

Why Mobile Optimization for Legal Websites Is Essential


by Jamilla Tabbara

Mobile optimization helps law firms build credibility, connect with clients and improve digital marketing.

A group of mobile devices with websites perfectly optimized for smaller screens.