Georgia taxpayers may soon receive checks of up to $500 after the state Senate approved the refunds Thursday.

The Senate also approved a reduction in Georgia’s income tax rate. Combined, the refund and tax rate cut would put more than $2 billion back in taxpayer’s wallets through fiscal year 2026.

The tax measures now await the signature of Gov. Brian Kemp, who has made them a top priority. Supporters say Georgia can afford to return money to taxpayers due to its conservative budget practices.

“While other states are raising taxes on their citizens at a time of sky-high prices, when they can least afford it, we are going in the opposite direction,” Sen. Bo Hatchett, R-Cornelia told fellow senators Thursday.

Democrats supported the tax refund but opposed cutting the tax rate — a move they said would primarily benefit the wealthy.

“This is nothing but a tax cut for the rich dressed up in some pretty language,” said Sen. Elena Parent, D-Atlanta.

Thursday’s Senate votes are the latest in a series of tax cuts and refunds legislators have approved, even as they have increased state spending. The tax relief is possible because Georgia accumulated $16.5 billion in reserves and budget surpluses in recent years.

The Senate approved the tax refund, House Bill 112, by a vote of 52 to 0. The bill would provide refunds for taxpayers who filed returns in both 2023 and 2024. Individuals or married people filing separately would receive a refund of up to $250. Heads of household would get up to $375, while married couples filing jointly would receive up to $500.

The Department of Revenue did not respond to questions about how soon taxpayers could receive the refunds.

HB 112 is expected to reduce the state’s reserves by about $1.2 billion through 2026.

The Senate approved the tax rate cut, House Bill 111, by a vote of 30 to 23. It would accelerate tax cuts originally approved in 2022, reducing the income tax rate for individuals and corporations from 5.39% to 5.19% for 2025. Lawmakers plan to reduce the rate to 4.99% by 2027 — two years ahead of the original schedule.

Democrats cited an analysis from the liberal-leaning Georgia Budget and Policy Institute, which found the top 1% of earners — those making more than $769,300 a year — would see an average tax cut of $2,787 per year. The bottom 20% of earners — those making $24,400 a year or less — would get an average tax cut of $10 a year.

HB 111 is expected to cost the state about $1 billion in lost revenue through 2026.

Sen. Nan Orrock, D-Atlanta, said the money from the tax cut could be better spent on health care, education and services for seniors, children and veterans.

Sen. Blake Tillery, R-Vidalia, said high-earners will get the biggest break because they pay the lion’s share of taxes. And he said lower-income families pay little or no income taxes.

The tax refund and rate cut come amid uncertainty about how the Trump administration’s efforts to slash federal spending could affect Georgia’s budget. Lawmakers won’t know for sure the effect of those cuts until after they approved a budget for fiscal year 2026, which begins in July.

The House approved its spending plan last week. The Senate is expected to approve its own budget soon.

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