Like many states across the nation, Georgia started 2026 by looking at how to increase affordability for its people. This went across party lines, making it quite the achievement. Eventually, both the Georgia income tax and property taxes came under the microscope. Both were seen as obstacles to solving various issues across the state, especially those related to housing. The disagreement came over how to cut them while still funding basic government services.
The bill has gone through many iterations and debates, and currently sits in the Georgia State Senate, as further debate is sure to shape it. With origins as a complete elimination of both tax types, the bill is now much closer to a simple cap, which should benefit taxpayers across the state. In this article, we will go over how the bill started and where it stands in the present day.
States Fight Against Property Taxes
Georgia is one of many states to take aim at property taxes, with the likes of Texas, Ohio, and Florida passing large cuts in the past few years. Texas and Florida have even floated eliminating property taxes altogether, at least for school districts, which are the largest recipients of taxes. Rising taxes are currently a major issue in Illinois, while they are being used as a bargaining chip between New York City and the rest of the state. Georgia has been trying to fix its property tax system for a while, with 2026 seeing it as the main legislative focus.
The Origins of the Current Bill
When it first began to develop in the House, the bill focused on eliminating property taxes entirely. This would be achieved by gradually increasing the homestead exemption over the following few years, with 2032 seeing a 100% exemption. This would mean that all primary residences would not pay property taxes at all, though second homes, rental properties, and other types of homes would still be taxed. As Georgia uses sales, income, and property taxes to fund the government, this would be both a boon for homeowners and a curse for government institutions.
This initial proposal ran into issues with practicality. First, for it to go into effect, a constitutional amendment would have to be passed. This was a legislative impossibility, as it would require two-thirds of both the House and Senate to vote for it. If this were broken down purely on party lines, it would be an impossibility. The second issue was that there was no realistic way to make up the budget shortfall. The initial idea was to increase the sales tax dramatically, along with taxes on certain specialty types of real estate. This proposal initially came together as House Resolution 1114. After months of debate, HR 1114 failed to progress in its proposed state. However, HR 1114 was repackaged as a moderate bill, which did see success.
House Bill 1116
While HR 1114 garnered the attention, House Bill 1116 saw much more support. Built on HR 1114, HB 1116 focused on capping property taxes, rather than eliminating them. This not only had more support across the legislature, but it did not require a constitutional amendment. It certainly came down to the wire, as HB 1116 barely passed on Crossover Day, the last chance for legislation to move from one chamber to the next. This was quite an impressive feat, as the initial resolution had to be completely overhauled in a matter of days.
HB 1116 did away with the idea of eliminating property taxes, due to both budgetary and political practicality. Instead, it focused on a 3% cap on property tax increases, or the rate of inflation, whichever was higher. Local jurisdictions can exceed the cap if local voters approve the increase. This is meant to control massive tax spikes while allowing for smooth and steady growth of property taxes. In theory, this keeps taxes under control while still providing a steady and predictable revenue stream to schools and other entities that need funding. A provision was also included that allowed a sales tax increase of one cent to help cover the loss of revenue for local governments.
The Georgia State Senate
While clearing the House was a huge step, the bill must now be able to make it through the Senate. While debate has not yet begun on the bill, it is generally expected to be divided along party lines yet again. The main opposition to the bill says that it will hamper the ability of local governments, especially schools, to raise money and adjust to changes in the economy. Proponents laud the bill’s ability to keep taxes stable and reliable, which should benefit both taxpayers and government agencies dependent on them. Rural counties, which depend on property taxes over those for income or sales, would benefit in particular from a cap, instead of a full-on cut.
Georgia Gets Some Tax Relief
While permanent tax relief is currently being decided, both sides of the aisle agreed to pass along savings to the people of Georgia earlier in 2026. The Georgia legislature had debated whether to offer $2 billion in income tax rebates or $2 billion in property tax relief. Instead, all sides compromised and settled on $1.2 billion in income tax rebates and $850 million in property tax relief. The property tax savings are applied directly to tax bills, while the income rebates will come to taxpayers as checks. This was made possible by a budget surplus. Previous tax relief in 2023 saw a similar one-time reduction for homeowners, with the possibility of more such gestures in the future.
Exemptions and Appeals Can Lower Taxes Further
While the current bill is still in the Senate, there are things you can do to lower your taxes in Georgia. Exemptions are the first option, and seniors in and around Atlanta saw a substantial increase in their exemptions passed in 2025. Homeowners and businesses can improve upon exemptions and legislation with property tax appeals. These allow you to dispute the values put forward by your assessor, possibly lowering your taxes by cutting the value. To sweeten the deal, successful appeals will lock in a property’s assessed value for three years, shielding real estate from surging values thanks to market forces or aggressive assessment.
O’Connor is Here to Help
With legislation up in the air and property values and taxes rising, having a tax professional by your side is more important than ever. Even if the new bill passes, property tax appeals and other techniques can cut even more off of your tax bill. We at O’Connor are here to offer our expertise. For over 50 years, we have been fighting taxes across the nation. Originally founded in Texas, we have expanded all over the nation, including a branch office in the Atlanta area. As one of the hottest property markets in America, Atlanta is seeing record values that keep increasing at a record clip. Even with a future tax cap, many homes have become unaffordable for longtime residents.
We at O’Connor will help you by analyzing your assessment, looking for any errors. Next, we will launch a property tax appeal, representing you at every stage along the way. You will be given a client success consultant, who will act as your constant point of contact to help guide you through the process. We will also gather the evidence needed to win your case, as successful appeals require a slew of evidence. Best of all, there is no upfront cost to work with O’Connor. We will only take a contingency fee from your savings if we are able to save you money on your taxes. We currently help both homeowners and businesses in Cobb, Dekalb, Fulton, and Gwinnett counties.
