Georgia Property Tax for Real Estate Investors: What to Budget For

Property tax is one of the biggest costs of holding a rental in metro Atlanta, and the number most likely to change after you buy. Here is how it works in Georgia.

How the bill is built

• The county assessor sets the value. The Fulton, DeKalb, Cobb and Gwinnett county tax assessors value each property as of January 1 every year.
• Assessed at 40%. Georgia taxes real estate on 40% of its fair market value. A house valued at $400,000 has an assessed value of $160,000.
• Millage rates. The county, the school district and the city each set a millage rate, in dollars per $1,000 of assessed value. Combined, they often work out to about 1.3% to 1.8% of market value inside the City of Atlanta and DeKalb, and somewhat less in parts of Cobb and Gwinnett.
• No homestead exemption on a rental. A home you own and live in can get homestead exemptions and, in many counties, limits on yearly increases. An investment property gets neither.

What happens after you buy

Georgia counties reassess every year, and a recent arm’s-length sale is strong evidence of value, so your purchase price usually becomes the new value the next January 1. Underwrite taxes on what you pay, not on the seller’s bill.

Appealing your value

The county mails an annual assessment notice, usually in the spring or early summer. You have 45 days from the date of the notice to file an appeal with the county board of assessors. Recent purchase prices, repair estimates and comparable sales are the usual evidence.

How it affects a loan

We use taxes at full market value, not a homestead figure, when we size a DSCR rental loan.

Common questions