If you're considering buying a home in Georgia, it's important to have an idea of what your property taxes will be. Fortunately, property taxes in the Peach State are generally low compared to the national average. However, it's crucial to note that property taxes can vary significantly depending on your location within Georgia.
How Georgia Property Taxes Work
The amount of property taxes you pay in Georgia is based on the assessed value of your home, which is determined by assessors in each county. They appraise every home, considering factors such as property type and neighborhood, to establish its market value. The assessed value is then calculated by applying the Georgia assessment ratio, which is typically 40%. For example, if your home's market value is $100,000, the assessed value would be $40,000.
Some cities in Georgia use different assessment ratios, such as Decatur, which has a 50% ratio. Additionally, there are various property tax exemptions available in Georgia, which can lower your assessed value and consequently, your taxes. These exemptions vary by county, with the statewide exemption at $2,000, but it only applies to the statewide property tax.
Georgia Property Tax Rates
Property tax rates in Georgia are often described in mills, which represent $1 of taxes for every $1,000 in assessed value. The largest portion of property taxes in most counties is allocated to schools, with rates typically ranging from 15 to 20 mills.
To make a fair comparison between locations, it's useful to examine effective property tax rates. These rates reflect the median property taxes paid as a percentage of the median home value, providing a better understanding of what new homeowners can expect to pay.
Highlights from Georgia Counties
Fulton County
Home to Atlanta and other cities like Sandy Springs, Fulton County has the highest property taxes in terms of dollar amount. However, the average effective tax rate of 1.09% is lower than the national average. It's important to consult with a financial advisor in Atlanta if you have questions about property taxes and your overall financial plans.
Gwinnett County
Located northeast of Atlanta, Gwinnett County has an effective property tax rate of 1.30%, above the state and national averages. Homeowners in Gwinnett County can potentially reduce their property taxes through exemptions, such as the homestead exemption.
DeKalb County
DeKalb County houses about 10% of Atlanta's real estate, including the city of Decatur. The average homeowner in DeKalb County pays $2,845 annually in property taxes, higher than the state average but lower than neighboring Fulton County.
Cobb County
As one of the largest counties in Georgia, Cobb County boasts one of the lowest effective property tax rates at just 0.84%, below the state average. For a home valued at $100,000, the annual property tax payment would be only $840.
Chatham County
Situated on the Atlantic Coast and home to Savannah, Chatham County has relatively low property taxes compared to the national average. The median property tax payment is $2,285, which is over $500 cheaper than the national average.
Clayton County
Clayton County, a suburban area south of Atlanta, has a median annual property tax payment of just $1,557. However, the effective tax rate is 1.28%, deviating from the pattern seen in other counties.
Cherokee County
Cherokee County has an average effective property tax rate of 0.92%, lower than most other Georgia counties. The county offers various exemptions, including the double homestead exemption for eligible homeowners.
Henry County
Part of the Atlanta metropolitan area, Henry County has a higher average effective property tax rate at 1.33% compared to other Georgia counties.
Richmond County
Commonly referred to as Augusta, Richmond County has relatively low property tax payments but higher tax rates. The typical homeowner pays $1,207 annually, resulting in an effective tax rate of 1.05%.
Muscogee County
Muscogee County falls in the middle in terms of property tax rates in Georgia, with an average effective tax rate of 1.06%. The median property tax payment is $1,516.
Before making any decisions about buying property in Georgia, it's essential to consider property taxes as a part of your overall financial plan. Consulting with a financial advisor can provide valuable insights and guidance tailored to your specific needs.