A monthly house payment consists of four basic parts—principal,
interest, taxes and insurance (PITI). Most of your monthly payment
is a combination of principal and interest, however, the other major component of your monthly payment is real estate property tax.
Ad valorem tax, more commonly known as property tax, is a large
source of revenue for governments in Georgia. The basis for ad
valorem taxation is the fair market value of the property, which is
established by your county board of assessors January 1st of
each year. The tax is levied on the assessed value of the property is by law established at 40% of the fair
market value. The amount of tax is determined by the tax rate (mill rate) levied by various entities (one mill is
equal to $1.00 for each $1,000 of assessed value).
HOW TO ESTIMATE YOUR ANNUAL GEORGIA PROPERTY TAX
To estimate your annual property tax, multiply the fair market value of your home by 40%. Deduct from this
amount your county homestead exemption (see the list below to determine your homestead exemption).
Divide the balance by 1,000 and multiply this amount by the mill rate listed below for the city and county of
your residence. This final figure is your estimated annual property tax. Divide this figure by 12 to calculate
your monthly property tax payment.
SAMPLE PROPERTY TAX ESTIMATE:A home located in Forsyth County with a fair market value of $300,000.
Appraised Value x 40%
Deduct Homestead Exemption (if applicable)
Divide the Balance by 1,000
Multiply by the Appropriate County Mill Rate
$300,000 x .40 = $120,000
$120,000 - $8,000 (for Forsyth County) = $112,000
$112,000 / 1,000 = $112$112 x 22.63 = $2,534.56 (Annual property tax estimate)
GEORGIA HOMESTEAD EXEMPTIONS BY COUNTY
NOTE: Before you can receive the benefit of your county's Homestead
Exemption, you must file a one-time application with your county Tax
Assessor's Office. In order to be eligible for the exemption—you must
own the property for which you are filing, the property must be your
primary residence (owner-occupied) and you must be a legal resident
of the county. After filing your initial application, the exemption is
automatically renewed each year thereafter unless there is a change
in ownership or you no longer meet the eligibility requirements.
Contact your local county Tax Assessor’s Office for more information.