2026 saw many ups and downs in Georgia property tax law. Starting with an ambitious plan to eliminate property taxes entirely, a long saga of deals and last-minute changes led to relatively minor changes. However, while most of the Atlanta area will see a small impact thanks to recent changes, the rest of the state could see significant cuts to their property tax bills, or at least see a slower growth in their assessed values.
While we previously covered the various legislative movements in great detail, we will wrap everything together so that you know what to expect as the new year approaches. We will break down what you can expect in 2027 and beyond, as other potential laws and regulations come online.
A Law Circumvented
Modern Georgia legislation first addressed the growing property tax crisis in 2025 with the “Save Our Homes Act.” This created a floating homestead exemption across the state, which would cap the assessment growth of primary homes at 3% or the growth of inflation. This bill saw extensive support on both sides of the aisle. However, there was a clause built in that undermined much of it. Counties and other jurisdictions could choose to opt out of the exemption if they wanted to. The vast majority of counties did so, largely rendering the Save Our Homes Act toothless.
An Odd Path to Success
With the original bill rendered nearly useless, other means were put forward to help resolve the affordability crisis. One of the major pushes was to make a universal 100% homestead exemption, which would effectively eliminate property taxes for homeowners. However, this required two-thirds of the Georgia House and Senate to pass an amendment, which was politically impossible. Instead, the whole idea was scrapped, and a new solution, House Bill 1116, was established.
Although HB 1116 initially saw more success, it was also struck down as the legislative window was closing. Late into the night, legislators pulled a Hail Mary and stuffed the language of HB 1116 into Senate Bill 33. Originally meant to regulate THC, SB 33 was instead hollowed out and stuffed with much of HB 1116’s intent. Through some late-night wrangling, SB 33 was passed.
What Is in the New Law?
The main thrust of SB 33 is that the floating homestead exemption is now mandatory. Whereas most counties had gotten out of the floating exemption before, all must now comply. This means that there is now a 3% cap on assessment growth, which is tied to inflation. This should keep housing costs down and will hopefully prevent the massive spikes that have been seen across Georgia, especially in the Atlanta area. Since property tax millage rates in Georgia are applied to the assessed value of a property, slowing the growth of the value should lead to hindered growth in tax bills. While voters can override the cap, most jurisdictions are bound to stick to the new rule.
More Relief
While the cap is a grand start, other measures will also be put in place. This includes the Local Homestead Option Sales Tax (LHOST), which gives communities more financial flexibility. LHOST will allow a county or other body to levy a 1% sales tax, which can then be used to bring even more property tax relief. The intent of LHOST is to spread the tax burden to the whole community, while also maintaining funding for vital government services, such as schools, first responders, and roads. In addition, many groups, such as seniors, have been given stronger exemptions in the last few years, especially in the Atlanta area.
When Will Georgia Property Tax Relief Go Into Effect?
The entire law will be introduced in stages, with the 3% assessment cap going into effect on January 1, 2027. This will then have a large impact on future bills and will prevent massive increases from occurring. This means that any homeowners lacking an exemption should quickly file at the earliest opportunity. While extensive, these savings can only be achieved if a taxpayer has a homestead exemption on their primary residence.
Jurisdictions will not be able to use LHOST as of yet. While an LHOST referendum was proposed, it was not included on the ballot for the November election. The proposal was defeated mostly along party lines, and time will tell if the LHOST portion of the law will be put in place in the future. If passed, the LHOST would be placed on many products, including fuel. The possible price increase for necessities was one of the reasons that the original LHOST effort was defeated. Even if the sales tax is not passed, the original homestead cap should be a boon for homeowners across Georgia.
How Non-Homestead Properties Can Save
With the new law based on the homestead exemption, many types of properties find themselves outside of the new protection. This includes rental properties, both rental homes and short-term rentals like Airbnb. In addition, commercial properties of all sorts will find themselves unprotected. In addition, any secondary homes owned will be outside of the new law, as only the principal residence can have an exemption.
This means that many Georgia property owners will have to pursue other measures to find tax relief. This is primarily achieved through property tax appeals. These challenge the values placed on a home or business by the assessors, and can also fix outstanding issues, such as incorrect assessments. Appeals can also challenge rejected homestead exemptions, allowing homeowners a second chance at both the original savings and the new law.
In addition to the starting reduction, a successful appeal in Georgia will also freeze an assessment for three years. This means that even commercial or rental properties can get the freeze. Appeals and the freeze can even be used in tandem with the homestead exemption for qualifying properties, potentially allowing a huge amount of savings. Since the 3% cap is now on the books, an assessment will take years to truly rise following a freeze. By combining these two unique measures, homeowners in Georgia can achieve a property tax break that no other American can.
O’Connor Is Here to Help
Whether you need help with your homestead exemption or you are appealing and aiming for an assessment freeze, it always helps to have a veteran firm by your side. As one of the largest property tax firms in the nation, we at O’Connor are uniquely equipped to handle all of your needs. With 52 years in business, we have seen every tax situation possible, and our experts know how to perfectly navigate every troubling situation.
In Georgia, we use data-driven techniques to study your assessment. Once we find any issues, we then consult our advanced databases to find the perfect comparable properties. Since appeals are based on having such evidence, this portfolio of proof gives us the ammunition to succeed. We will then represent you at any hearings, presenting the evidence in the best possible manner. This guarantees you the best chance possible to get both a reduction and an assessment freeze. We can also help you file your homestead exemption at no cost. We also offer business-focused services, such as sales and use tax, cost segregation, and business personal property (BPP) services. There is no cost to enroll with us, and you will only pay if your taxes are successfully lowered.
