Property taxes in Georgia: how your bill is calculated
The seller's tax bill is not your tax bill. Here is how to estimate what you will actually pay, and why it can change after you buy.
The formula
Georgia property tax is calculated in three steps. The county tax assessor sets a fair market value for the home. State law assesses property at 40% of that value. The tax is the assessed value multiplied by the millage rate, divided by 1,000, minus any exemptions.
A mill is $1 of tax per $1,000 of assessed value. Your total millage is the sum of the rates set by every body that taxes the property — the county, the school district, a city if you are inside city limits, and sometimes special districts. Those bodies set their rates each year.
| Step | Example |
|---|---|
| Fair market value set by the assessor | $400,000 |
| Assessed value (40%) | $160,000 |
| Multiply by total millage ÷ 1,000 | Use your county's current rate |
| Subtract exemptions (e.g. homestead) | Varies by county |
Why the seller's bill can mislead you
Listings often show last year's tax amount. That number reflects the seller's situation: their exemptions, possibly a value that has been frozen or capped under a homestead exemption for years, and the assessor's prior estimate of value. When you buy, the seller's exemptions end, and in many counties the sale price prompts a fresh look at the value.
So estimate your own taxes. Take a realistic market value (often near your purchase price), multiply by 40%, multiply by the total millage for that address, and subtract the exemptions you will qualify for. Your lender does a version of this to set your escrow; ask them to show you the figure they used.
City limits and school districts matter
Two homes a mile apart can carry noticeably different tax bills because one sits inside a city that levies its own millage, or in an independent city school district. A mailing address does not tell you which jurisdictions tax a property — the county tax assessor's or tax commissioner's records do. Check before you fall for a house.
County pages are a good place to start comparing: Fulton, DeKalb, Cobb, Gwinnett, Henry and others.
Homestead exemptions
If the home will be your primary residence, apply for a homestead exemption with the county tax assessor. You must own and live in the home on January 1, and in most counties the application is due by April 1 for that tax year. Many counties offer more than the statewide basic exemption — some freeze or limit increases in the taxable value while you own the home. See the Georgia homestead exemption guide.
Assessment notices and appeals
Each year the county mails an annual assessment notice showing the value it intends to tax. If you think the value is too high, you have 45 days from the date of the notice to file an appeal with the county board of assessors. The notice explains how. Sales of comparable homes are the most persuasive evidence; your purchase price, if recent and arm's-length, is strong evidence too.
Read the notice when it arrives — the estimated tax on it is not the bill, but the value on it is what your bill will be built from.
When the bill is due and how escrow handles it
Georgia counties bill property taxes annually, and due dates vary by county — many fall in the autumn, and some counties split the bill into installments. If you have an escrow account, your lender pays the bill from it and adjusts your monthly payment after an annual escrow analysis. A rise in the tax bill shows up as a higher payment, sometimes with a shortage to make up.
At closing, taxes for the current year are usually prorated between buyer and seller according to how many days each owns the home.
Worked example: estimating your first bill
Say you buy for $400,000 and the total millage for the address is 30 mills (a placeholder — use the real rate). Assessed value is $160,000. Before exemptions the tax is $160,000 × 30 ÷ 1,000 = $4,800 a year, or $400 a month in escrow. If the county's homestead exemptions take $X off the assessed value, subtract $X × 30 ÷ 1,000 from that figure. Until your exemption is granted, budget for the full amount.
Questions to ask before you make an offer
- Which county, city and school district tax this exact parcel?
- What is the current total millage for those jurisdictions?
- Does the current owner have exemptions or a frozen value that will end at the sale?
- Is the land or home under a special use valuation (such as a conservation covenant) that a new owner could breach?
- Has the property been reassessed recently, and is an appeal pending?
Common questions
How are property taxes calculated in Georgia?
The county sets a fair market value, the home is assessed at 40% of that value, and the tax equals the assessed value times the total millage rate divided by 1,000, minus exemptions.
Will my property taxes go up after I buy a house in Georgia?
They often do. The seller's exemptions end at the sale, and the county may revalue the home based on the price. Estimate your own bill from the current millage and a realistic value rather than relying on the seller's last bill.
How long do I have to appeal my property assessment in Georgia?
45 days from the date of the annual assessment notice. The notice explains how to file with your county board of assessors.
What is a millage rate?
The tax rate expressed in mills — dollars of tax per $1,000 of assessed value. Your total millage is the combined rate of the county, school district, city and any special districts that tax the home.
Where do I find the millage rate for a Georgia address?
On the county tax commissioner's or tax assessor's website, or on the last tax bill for that parcel. Make sure the rate matches the address's city and school district.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.