Georgia’s state budget is showing signs of strain heading into the final stretch of 2026, with October tax collections barely moving compared to a year ago. The numbers matter because they signal what resources state lawmakers will have when they gather in January — and whether a special session may come even sooner.
According to reporting from the Capitol Beat News Service, Georgia brought in $2.71 billion in net tax revenue in October — just $6.7 million more than the same month last year, a year-over-year increase of only 0.2%. That nearly flat result stands in contrast to the previous three months, which had each posted gains between 2.3% and 3.5%.
Individual Income Tax Collections Take a Hit
The sharpest decline came from individual income taxes, which dropped $115.1 million — or 8.6% — compared to October 2025, landing at roughly $1.22 billion. Withholding payments, the portion of income taxes taken directly from paychecks, fell by $106.6 million, also an 8.6% drop.
Not every category moved downward, however. Corporate income tax collections jumped $29.7 million, a 48.7% increase. Gross sales and use tax collections also climbed, rising $135.3 million year over year — an 8.5% gain.
Gas Tax Suspension Continues to Reduce Revenue
Motor fuel tax collections fell for a seventh consecutive month, declining $8.3 million, or 4.3%, compared to October 2025. That ongoing decline is a direct result of Gov. Brian Kemp’s executive order suspending the state’s 33.3 cent-per-gallon gasoline excise tax — 37.3 cents for diesel — which has been in effect since March to ease the burden of rising fuel prices on Georgia drivers. The suspension runs through November 30.
The October drop of $8.3 million is larger than the $422,000 decline recorded in September and the $6.6 million drop in August, but smaller than the $10.6 million shortfall in July. Earlier in the year, the losses were far more significant — motor fuel revenue fell $73.3 million in April, and more than $196 million in both May and June.
A Special Session May Be on the Horizon
Governor Kemp has signaled that the state’s fiscal situation could require action before the Georgia General Assembly’s regular session convenes in January. In a statement issued on November 4, the day after the election, Kemp drew a clear line around what any potential special session would — and would not — address.
“I will not be calling a special session of the Georgia General Assembly in order to curtail executive branch powers or debate redistricting changes,”
Kemp said.
He added,
“There are, however, budgetary issues that may need to be addressed before the convening of the regular session in January.”
What those specific budget issues are has not been detailed publicly, but October’s sluggish revenue figures — particularly the significant drop in individual income tax collections — may factor into the governor’s decision-making in the weeks ahead.
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