The 40 percent assessment ratio

Georgia values property at fair market value and then assesses it at 40 percent of that figure. Millage rates are applied to the assessed value, not the market value, which is why a Georgia assessment notice showing a number far below what the house would sell for is normal rather than an error.

Each county's board of tax assessors sets the value, and an owner can appeal. The tax commissioner then bills and collects for the county, the school system, and any city.

Homestead exemptions and what happens when you sell

A homestead exemption reduces the taxable value for an owner-occupant, and many Georgia counties add their own exemptions on top of the statewide one, including larger ones for seniors. Some counties also cap assessment increases for homesteaded property.

Exemptions attach to the owner, not the property. When you sell, yours ends, and the new owner's bill can be materially higher — a routine reason a financed buyer's affordability calculation changes late in the process. It does not affect your proration, but it is worth knowing about.

Proration at closing

A sale that closes mid-year splits the year's taxes between seller and buyer, and the closing attorney handles the calculation on the settlement statement. Where the year's millage has not been set, the prior year is used as an estimate and the contract governs any later true-up.

Delinquent taxes from earlier years are a different matter: they are a lien on the property and are paid in full from the proceeds.

Tax sales and the 12-month redemption

When taxes go unpaid the tax commissioner can levy and sell the property at a tax sale, typically on the courthouse steps. The purchaser receives a tax deed, but it is not immediately absolute: the owner and certain other parties generally have 12 months to redeem.

The redemption price is what the purchaser paid plus a premium — 20 percent for the first year or part of a year, and 10 percent for each year after. That is expensive, but it is a real second chance, and it is more generous than most states. After the redemption period the purchaser can foreclose the right of redemption by giving statutory notice.

Judicial in rem tax foreclosure is much faster

Georgia also permits counties to use a judicial in rem tax foreclosure, and several metro Atlanta jurisdictions do. It runs through superior court against the property itself, and the redemption period afterward is far shorter than 12 months.

If your property is in a county using the in rem process, the timeline is compressed and the assumption of a year to redeem is wrong. Check with the tax commissioner rather than relying on the general rule.

Selling with delinquent taxes

You do not need to clear delinquent Georgia property taxes before selling. The closing attorney obtains the figure from the tax commissioner and the full amount — tax, interest, penalties, and costs — is paid from the sale proceeds.

If a tax sale or an in rem action has already been scheduled, the date is the constraint. Send us the county and the date and we will tell you whether a closing can beat it.

Frequently asked questions

Why is my Georgia assessment so much lower than my home's value?

Georgia assesses property at 40 percent of fair market value. Millage is applied to that assessed value, so the number looks low by design.

Do I have to pay delinquent taxes before selling in Georgia?

No. The closing attorney gets the payoff figure from the tax commissioner and it is paid from your proceeds.

How long do I have to redeem after a Georgia tax sale?

Generally 12 months, at the sale price plus a 20 percent premium for the first year and 10 percent per year after. Counties using judicial in rem foreclosure have a much shorter period.

Will my buyer's tax bill be higher than mine?

Often yes. Homestead and senior exemptions attach to the owner and end when you sell.

What transfer tax does Georgia charge?

$1.00 for the first $1,000 of consideration plus $0.10 for each additional $100 — effectively $1 per $1,000 — customarily paid by the seller.

Sources

This guide is general information, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Georgia professional about yours.