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Figuring out property taxes in Atlanta, GA

Atlanta, Georgia, USA downtown and midtown skyline at dusk.

A robust economy driven by a strong business environment and good quality of living make Atlanta one of the best cities in the world. If you plan to buy real estate property in Georgia’s economic powerhouse, you must first get a good grasp on property taxes in the area.

What is property tax?

Before anything else, we have to know what property tax is. Property tax is an annual amount paid to a local government by a land owner. It is based on a couple of factors like location and property value.

Once collected, these taxes are used to fund public services such as repairing roads, maintaining parks, and constructing schools. They also fund other essential services like firefighting and law enforcement that help keep order and safety in the community.

Property tax in Atlanta

There is no state property tax in Georgia. Instead, they vary by location and are computed based on millage rates set by the counties. These millage rates are equal to a certain amount in taxes for every $1,000 of a property’s assessed value.

In Atlanta, the millage rate (2018) is $10.27. This means that for every $1,000 of your property’s assessed value, you will need to pay $10.27 in property taxes.

Computing for property tax in Atlanta

To calculate property taxes in Atlanta, you must first figure out the assessed value of your property. This is equivalent to 40% of your property’s Fair Market Value (FMV). If the FMV is $100,000, then the assessed value will be $40,000.

$100,000 x 0.40 = $40,000

Next, divide the millage rate by 1,000. Since Atlanta’s millage rate is 10.27, the result will be 0.0127.

10.27 / 1,000 = 0.0127

After that, you will just multiply the assessed value of $40,000 with 0.0127. This will get you a total property tax of $410.8.

$40,000 * 0.01027 = $410.8

Homestead exemptions in Atlanta

If you are a home owner in Atlanta, you might want to get a homestead exemption to save money. Homestead exemptions are legal provisions that reduce the property taxes of home owners. These apply only to primary residences and the exemption rates vary by location.

In Atlanta, the basic homestead exemption is $30,000. There are also special exemptions available for seniors, disabled veterans, and surviving spouses of a peace office or firefighter killed in the line of duty. You can go over these special exemptions in more detail here.

Computing for property tax in Atlanta with a homestead exemption

To compute your property tax with a homestead exemption, simply subtract the exemption amount with the assessed value of your property.

Let us say that your home has an assessed value of $40,000. If you had applied for a basic homestead exemption of $30,000, your home would have a taxable value of only $10,000.

$40,000 – $30,000 = $10,000

By multiplying that with the millage rate of $10.27 for every $1,000, you will get your total reduced property taxes.

$10,000 x 0.01027 = $102.7

If you had not applied for a homestead exemption, your property tax would have been $410.8. But since you did, it will only be $102.7. This means $308.1 in savings.

Property taxes can be tricky. If you need help with understanding how they work in Atlanta, I can be your guide. I’m Heidi Reis, and you can call me at 404-859-2018 or email me at info(at)abodeagency(dotted)net.