Georgia Tax Collections Show Positive Growth in September

News Summary

Georgia reported nearly $3.27 billion in net tax collections for September, marking a $60.3 million increase from the previous fiscal year. Key growth drivers include rises in individual income and corporate tax revenues, contributing to a total of $8.17 billion for the fiscal year to date. Despite a dip in net sales and use tax revenue, the overall figures reflect a positive trend in the state’s financial health, with lawmakers considering potential tax reforms.

Atlanta – Georgia’s net tax collections for September reached nearly $3.27 billion, marking an increase of $60.3 million, or 1.9%, compared to the previous fiscal year, which recorded net collections close to $3.21 billion. This growth reflects a steady increase in various tax revenues and indicates a positive trend for the state’s financial health.

For the fiscal year to date, Georgia’s net tax revenue collections totaled $8.17 billion, which is an increase of $64.5 million, or 0.8%, in comparison to the same period in September 2024. The significant rise in individual income tax and corporate tax collections were the main contributors to this overall growth.

Individual Income Tax and Corporate Tax Increases

In September, individual income tax collections approached $1.49 billion, reflecting an increase of $45.4 million, or 3.2%, from the $1.44 billion collected in September of FY 2025. This rise can be attributed to a decrease in tax refunds issued, along with higher withholding and estimated payments by taxpayers.

Corporate income tax collections also showed robust growth, increasing by $45.2 million, or 7.6%, from $597.5 million in the previous fiscal year. Additionally, estimated payments for corporate income tax were up by $8.2 million, indicating heightened business activity within the state.

Sales and Use Tax Dynamics

Sales and use tax gross collections experienced a growth of $45 million, or 2.9%, totaling $1.59 billion compared to September 2024. In contrast, net sales and use tax revenue dipped by $26.7 million, or -3.5%, down to $767.7 million from the previous year. Despite this, the adjusted sales tax distribution to local governments rose by $6.5 million, or 0.8%, reaching $780.2 million.

Sales tax refunds saw a notable increase, jumping by $65.2 million compared to FY 2025, which may have contributed to the decline in net collections.

Other Tax Collections

Motor fuel tax collections showed an uptick of $3.6 million, or 1.8%, reaching $200.1 million, while motor vehicle tag and title fee collections surged by $6.5 million, or 20.8%. However, title ad valorem tax (TAVT) collections fell by $6.7 million, or -8.5%.

Legislative Considerations

As Georgia navigates its tax dynamics, lawmakers are contemplating the potential elimination of the state’s personal income tax to enhance the state’s competitiveness. This legislation could have significant implications for future tax revenue and economic development.

Conclusion

The September tax collection figures demonstrate a resilient performance from Georgia’s economy, driven primarily by individual income and corporate tax revenues. Despite some fluctuations in sales and use tax collections, the overall growth points to a stabilizing fiscal environment as the state looks ahead.

Deeper Dive: News & Info About This Topic

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