Income tax; exclude a portion of overtime compensation and cash tips
Summary
A BILL to be entitled an Act to amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, exemptions, and credits for state income tax, so as to exclude a portion of overtime compensation and cash tips from taxation; to provide for reporting by employers; to provide for rules and regulations; to provide for a definition; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.
Bill status
in committee
1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 18, 2026
Last action Mar 6, 2026
Maddy AI version diff · 1 comparison
What changed between versions
LC 44 3398/a
→
LC 44 3495S/hs
·
5 edits
MODERATE
This bill was amended to extend the tax exemption for overtime pay and cash tips from 2027 to 2026, and to add a sunset provision that repeals the exemption on December 31, 2028. The changes clarify the definitions of 'cash tips' and 'tipped occupations' to align with federal standards, and allow employers to submit tip reporting data at the end of 2026 instead of monthly or quarterly.
Scope change
The bill now applies to taxable years beginning on or after January 1, 2026, instead of January 1, 2027, and includes a sunset clause that ends the exemption on December 31, 2028.
TIMELINE
The tax exemption for overtime compensation and cash tips now applies to taxable years beginning on or after January 1, 2026, instead of January 1, 2027.
A new sunset provision was added, requiring the exemption to be repealed and reserved on December 31, 2028.
REQUIREMENT
Employers are now allowed to submit tip reporting data at the end of the 2026 tax year instead of monthly or quarterly.
DEFINITION
New definitions were added for 'cash tips' and 'occupation that customarily and regularly receives tips' to align with federal Treasury codes and exclude certain occupations.
TECHNICAL
The original bill text was replaced with a substitute version that incorporates these changes.
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
4
Key actions
1
Committee
1
Mar 6, 2026
Lower · Passed
House Committee Favorably Reported By Substitute
lower
Feb 18, 2026
Introduced
House Hopper
lower
2 primary · 0 co-sponsors
Sponsors
Ask Maddy
·
AI policy assistant
Ask Maddy about HB 1370
Scope: GA
Hi! I can help you understand HB 1370. What would you like to know?
Try one of these
i
Maddy answers using official bill text and legislative records. Always verify before sharing.
Sources cited inline