A comprehensive guide of property taxes in Atlanta, GA. Before buying your dream home, better equip yourself with this knowledge. Frank Farkas can help.
If you’re considering moving to Atlanta, Georgia, any time soon, apart from the obvious like the cost of living, the best schools, and where to eat, you should inform yourself of all things taxes, especially when buying property. Property taxes are something that you should calculate in your budget when moving to another state because they can make or break your budget. This is why here we created a guide on property taxes in Atlanta, Georgia, what property taxes include, how they’re calculated, and based on that data, how you can lower them, etc.
Understanding Property Taxes in Atlanta, Georgia
Based on recent stats from the latest fiscal year at the Tax Foundation, the property taxes in Georgia are somewhere is in the middle compared to the rest of the country. Researchers calculated and reviewed the effective rate that shows the total amount of property taxes paid each year as a percentage of the total value of all occupied homes. Based on the results, Georgia’s effective property tax rate ranked 27th highest in the country, making the Peach State not so expensive to live in. In fact, on average, state and local governments across the country bring in about $1,500 a year in property taxes per person. These are the more specific numbers:
- Effective property tax rate: 0.94 percent
- Median home value: $173,700 (21st lowest)
- Per capita property taxes: $1,124.80 (19th lowest)
- Median household income: $56,183 (19th lowest)
What are the Property Taxes in Atlanta, Georgia?
Personal property taxes are also known as property taxes and are fees that you pay for your personal belongings. Namely, private property is defined as any movable property that is not attached to a home or building. The definition, rates, and ways of taxation vary from state to state, but what they all have in common is that those mostly affect businesses.
The amount every homeowner pays depends on the assessed value of their property. This value is usually based on the house’s value on the market, but that does not mean it is equal to that same value. To determine the true assessed value of each home, assessors in Atlanta first appraise every household in each county. This way, they can determine the market value of each house. Once market value is calculated for each piece of real estate, the Georgia assessment ratio is applied. In Atlanta, as well as in most of the counties in the state assessment ratio of 40% is used. This means that if your home’s market value is $200,000, the assessed value is $80,000.
Atlanta’s Property Tax Rates
The property tax rates statewide are described in mills equal to $1 of taxes for every $1,000 in assessed value. When comparing millage rates between two locations, it is best to use effective property tax rates as they give a great idea as to how much a new homeowner can expect to pay in property taxes.
Namely, property taxes, as we all know, fund most services at the local level, so while each state is in charge of setting a minimal property tax rate, each county and municipality sets its rate too.
When are property taxes due?
Property tax payments in Atlanta are due December 20. As a taxpayer, you have 60 days from the date of billing to pay. Additionally, file tax returns for all property should be submitted between January 1 and April 1. This way, you are informing your local tax office about your opinion of the value of your property before mailing proposed assessments. That being said, if you disagree with the County Board of Tax Assessors’ evaluation of your home or other property, you can appeal the assessment.
Can property taxes be paid online?
In Atlanta, you can pay your property taxes online, as described here. However, for more personalized information on how to pay, you should contact the county tax commissioner’s office. For this and other information like filing for homestead exemptions, receiving property tax returns, filing an appeal of your property tax assessment, purchasing tax liens, and so on, it is best to contact the county tax commissioner’s office.
How To Calculate The Tax On Your Home In Atlanta?
Basically, the formula to figure the tax you have to pay for your home having the standard $2,000 homestead exemption is the following:
[(assessed value) – $2,000] * millage rate = tax due
Example: Assessed value is 40% of the fair market value. If a person that owned a home with a fair market value of $100,000 in an unincorporated area of a county where the millage rate was 25.00 mills, that person’s property tax would be $950.00–[(100,000 * 40%) – $2,000] * .02500 = $950.00. Multiply $100,000 by 40% which is equal to the assessed value of $40,000 and subtract the homestead exemption of $2,000 from the assessed value. Then multiply $38,000 by the millage rate of .02500 which is equal to $950.00.
Now that you know what property taxes in Atlanta, Georgia are and how to calculate them, you can start planning out your budget, the closing costs, and looking at real estate to buy. Don’t forget that a good real estate agent makes the entire search for a new home easier and more enjoyable, helping you avoid the most common issues and mistakes people make when buying real estate.