Georgia Property Tax 2026: HB 581 Floating Homestead, 40% Assessment and Opt-Out Counties

Georgia rewrote the rules of its property tax system with House Bill 581 (the "Save Our Homes Act"), which took effect in January 2025. The law created a statewide floating homestead exemption that caps annual taxable value growth at inflation — but many of the state's most populous counties and school districts opted out for 2026. This guide covers where HB 581 applies, where it does not, the 40% assessment ratio, the strict 45-day appeal window, and the senior exemptions that remain more valuable than ever in opt-out jurisdictions.

How Georgia Property Tax Works

Georgia property tax is administered at the county level under uniform state law. Each property is:

1. Appraised at fair market value by the county Board of Tax Assessors as of January 1.
2. Assessed at 40% of fair market value (Georgia's constitutional standard for residential and most property).
3. Taxed by multiple overlapping jurisdictions: county, school district (often the largest component), municipalities, and special districts.

Assessment notices are typically mailed between April and July depending on the county. The 45-day appeal clock starts from the mailing date printed on the notice, not the date you receive it.

HB 581: the Floating Homestead Exemption

House Bill 581 (Amendment 1 ratified by voters in November 2024) created a statewide floating homestead exemption that took effect January 1, 2025. Key mechanics:

How the floating exemption works

For qualifying homestead properties, the increase in the taxable portion of assessed value is limited to the rate of inflation (Consumer Price Index) over the prior year. If fair market value rises faster than CPI, the homestead exemption automatically "floats" upward to absorb the excess — preventing the taxable value from growing faster than inflation.

This effectively caps annual tax growth at the CPI rate for qualifying homesteads, until the property is sold or transferred (at which point it resets to current market value).

Opt-out provisions

Local taxing authorities — counties, school districts, cities — could opt out of HB 581 for each tax year from 2026 through 2029, with an annual renewal of the opt-out required. Most major metropolitan counties, school districts, and cities opted out, including:

• Fulton County (county + Fulton County Schools + most cities)
• Gwinnett County (county + Gwinnett County Schools)
• Cobb County (county + Cobb County Schools + Marietta, Kennesaw, Acworth)
• DeKalb County (school district opted out; county levy may differ)
• Chatham County (Savannah)
• Most Atlanta-metro municipalities (Atlanta, Sandy Springs, Dunwoody, Johns Creek, Milton, etc.)

What this means practically

In opted-in counties (mostly rural and smaller counties), HB 581 operates as advertised: your homestead taxable value cannot grow faster than CPI year over year.

In opted-out counties (most urban/suburban areas), HB 581 does not apply — assessed value can rise with market appreciation, and homeowners rely on the traditional $2,000 standard homestead and any local senior or floating homestead (Stephens-Day) exemptions.

HB 92 companion legislation

HB 92, passed alongside HB 581, allows homeowners to file for the homestead exemption during the 45-day appeal window after the assessment notice is received. This gives late-arriving homeowners one last chance to claim the exemption for the current tax year.

Standard and Senior Homestead Exemptions

Independent of HB 581, Georgia has a stack of standard and special homestead exemptions. These remain essential for homeowners in opted-out counties.

Standard Homestead Exemption

$2,000 off assessed value for county, school, and state tax. This is the statewide minimum. File with the county tax assessor by April 1 of the year for which the exemption is claimed (or during the 45-day appeal window per HB 92).

Stephens-Day Homestead Exemption (Floating)

Pre-dating HB 581, the Stephens-Day exemption is offered locally by certain counties to freeze the taxable value at the year the homestead was established. Savannah/Chatham County has one of the longest-running Stephens-Day programs. Where Stephens-Day is in effect, it generally survives the HB 581 opt-out and may be stacked with other exemptions.

Senior Homestead (Age-Based Local Exemptions)

Most Georgia counties and school districts have enacted local senior homestead exemptions beyond the state's $2,000 standard. These vary dramatically:

• Fulton County (age 65+): exemption on the first $50,000 of assessed value for county tax, with income limits
• Gwinnett County (age 65+): $20,000-$40,000 exemption range plus school district exemptions
• Cobb County (age 62+): school tax exemption increases based on age and income
• Columbus-Muscogee (age 65+): substantial school tax exemption

Check with your county tax commissioner's office for the specific local senior exemption stack — they are often the single largest tax reduction available to age 65+ homeowners.

Disabled Veterans Exemption

Exemption equal to the federal maximum under 38 U.S.C. § 2102, typically exceeding $100,000 of assessed value for 100% service-connected disabled veterans. Surviving spouses of veterans killed in action qualify for the same exemption.

Blind or Totally Disabled Exemption

$2,000 additional exemption beyond the standard homestead.

Appealing Your Assessment — 45 Day Window

Georgia law requires the county Board of Tax Assessors to mail an annual Notice of Assessment to every property owner. The 45-day appeal clock starts on the notice's mailing date.

Step 1: File appeal with Board of Tax Assessors

Use form PT-311-A (or the county-specific form) to file an appeal. You must specify grounds: (a) fair market value is incorrect, (b) uniformity of assessment is violated, or (c) taxability/exemption issue. Online filing is available in most larger counties.

Step 2: Board of Tax Assessors response

The Board reviews your evidence and either accepts your proposed value or rejects it. If rejected, you may proceed to the Board of Equalization.

Step 3: Board of Equalization

A three-member county citizen panel hears your appeal in an informal setting. You present evidence (comparable sales, photos of condition issues, independent appraisals). Decisions are written.

Step 4: Arbitration or Superior Court

From the Board of Equalization, appeals proceed to non-binding arbitration (residential) or Superior Court (commercial, or residential by election). Filing fees apply at this level.

3-Year Value Freeze After Successful Appeal

If you win a reduction, Georgia law prohibits the Board of Tax Assessors from raising that value for the next three tax years (except for physical improvements). This makes a successful appeal unusually valuable.

Payment Schedule

Georgia county tax bills are typically mailed in September/October by the county Tax Commissioner. Payment is due by the county-specific due date, usually between October 15 and December 20. Partial-payment plans are available in most counties.

Delinquent taxes accrue interest (typically 1% per month) and penalties. After 12 months of delinquency, the county may initiate tax sale proceedings — an unpaid tax lien is sold at public auction. The homeowner has a 12-month redemption period to repay with interest before the tax-sale purchaser can take title.

Frequently Asked Questions

What is HB 581 in Georgia?

House Bill 581 (the "Save Our Homes Act") created a statewide floating homestead exemption effective January 1, 2025, that caps annual taxable value growth for qualifying homesteads at the rate of inflation (CPI). However, local taxing authorities could opt out for tax years 2026-2029. Most major metropolitan counties — Fulton, Gwinnett, Cobb, DeKalb, Chatham — and their school districts opted out, so HB 581 is only in effect in opted-in (mostly rural) counties.

What is Georgia's property tax assessment ratio?

40% of fair market value, set by the Georgia Constitution. Unless specified otherwise by law, all real property is assessed at 40%, with the millage rate applied to that assessed value after exemptions. For homestead properties in opted-in HB 581 counties, the taxable portion of assessed value is capped at CPI growth rate year over year.

When is the Georgia property tax appeal deadline?

45 days from the mailing date of the annual Notice of Assessment. HB 92 (2024) also allows filing for the homestead exemption during this same 45-day window, giving late-arriving homeowners a second opportunity. File with the county Board of Tax Assessors using form PT-311-A. After a successful appeal, state law freezes that value for three years (except for physical improvements).

How do I claim the Georgia senior homestead exemption?

Senior exemptions are locally administered by each county and school district. Typical eligibility is age 62 or 65+, with income limits varying by jurisdiction. File with your county tax commissioner's office. Common deadlines: April 1 for the current tax year, or during the 45-day appeal window under HB 92. Senior exemptions vary from $2,000 (state standard) to full school tax exemption in some counties.

Does Georgia have a floating homestead exemption?

Yes, in two forms. HB 581 (effective 2025) created a statewide floating exemption that caps taxable value growth at CPI, but local jurisdictions can opt out and most metropolitan areas did for 2026. Separately, the pre-existing Stephens-Day floating homestead exemption operates in certain counties (notably Savannah/Chatham County) and typically survives HB 581 opt-outs.