Georgia Gov. Brian Kemp signed major tax relief legislation into law Monday, lowering income taxes, expanding deductions, and introducing new property tax relief measures for homeowners.

The income tax bill gradually reduces the state rate from 5.19% to 4.99% starting in 2026, with plans for further cuts if revenue growth allows, while also increasing standard deductions, dependent exemptions, and retirement tax relief.

It additionally provides temporary tax exemptions for overtime pay and cash tips, though it offsets some costs by eliminating certain tax credits and exemptions.

A separate law allows local governments to use sales tax revenue to reduce property taxes and strengthens statewide homestead protections to limit tax increases on homeowners, CBS News has reported.

Supporters call the measures broad tax relief for families and businesses, while critics argue they could reduce funding for public services.