Many homeowners with a mortgage may not think about property taxes very much, since the tax bill is likely paid out of their mortgage escrow account automatically. If you're selling your home in Georgia, however, property taxes and other real estate taxes may factor into your closing costs.
Here are the typical tax rates for a home in Georgia, based on the typical home value of $330,342.
| Tax Type | When you pay | Typical amount |
|---|---|---|
| Property Taxes | Yearly | The average property tax rate is 0.91%, which works out to $3,006 each year for the median home value in the state. |
| Transfer taxes | After selling, at closing | Georgia charges you about 0.1% of your home's sale price to transfer the title to the new owner. If you sell for Georgia's median home value — $330,342 — you'd pay $330. |
| Capital gains taxes | After selling, when filing yearly income taxes | Under the current federal capital gains tax rules, a typical Georgia homeowner who has lived in their house for at least two years out of the last five years will pay nothing in federal capital gains taxes when they sell their house. |
Property taxes in Georgia
The average effective property tax rate in Georgia is 0.91%, but this can vary quite a bit depending on which county the home is in.
| County | Property tax rate | Effective tax* |
|---|---|---|
| Towns County | 0.42% | $1,387 |
| Brantley County | 1.58% | $5,219 |
Property tax breaks and credits in Georgia for sellers
If you’re selling a home, there are tax breaks and write-offs available to you to save money.
If you make any significant repairs and improvements to your home prior to listing it on the market, they could be tax deductible. The key is that these repairs must be related to the sale. Keep records of any buyer requests for repairs after the home inspection or any lists that your agent makes for you, and save all estimates and receipts.
Repairs fall into the bucket of required maintenance to keep the home functioning, and you can deduct them immediately. Improvements increase the property’s value and can only be deducted over a number of years.
When filing your yearly tax return, you can deduct the interest paid for the first $750,000 of your mortgage debt for a primary home as well as a secondary home. If you're married filing separately, you can deduct $375,000.
To qualify, your primary home must meet the following criteria:
- The home must be a house, co-op, condo, mobile home, house trailer, houseboat or an apartment.
- The home must be used as collateral for the loan.
- The home must have sleeping, cooking, and toilet facilities.
In order to deduct interest on a second home, it must be collateral for the loan. If you rent out your second home, you must use the home yourself for a minimum of 14 days or more than 10% of the rental time.[1]
State property tax exemptions in Georgia
Georgia offers a standard homestead exemption along with several other exemptions for seniors and disabled individuals.
For more information, see the Georgia Department of Revenue.
Property tax breaks and credits in Georgia for buyers
If you’re buying a home, many tax breaks and credits available to you are meant to reduce the costs associated with home ownership.
As the new owner of a home, you can deduct your mortgage interest for a portion of the year just like mentioned above.
Other tax-saving programs and credits, such as homestead exemptions and first-time homebuyer credits may be available. For more information about property tax relief programs in Georgia, see the Georgia Department of Revenue.Transfer taxes in Georgia
| 💰 Estimated cost: | 0.10% |
Transfer tax is a blanket term used to describe fees charged by the state or local municipality when transferring property from one entity to another.
Georgia's current transfer tax rate is usually $0.10 per $100. So, for a house worth $330,342 — the median home price in the state — the transfer tax due will be $330.
Some cities and counties also charge their own transfer taxes. Check with your realtor and title company to see what taxes you'll owe in your area.
The specifics on who pays the transfer tax in Georgia are sometimes up for negotiation, but usually the seller is responsible.
»MORE: Learn more about transfer taxes in Georgia
Transfer tax exemptions in Georgia
Most real estate transfers in Georiga are subject to the transfer tax, but some are exempt. Common exemptions include transfers due to bankruptcy, divorce, estates, and gifted property.Capital gains tax in Georgia
| 💰 Estimated cost: | $0 |
Capital gains are profits made from selling an asset. If you sell your property at a gain, you may owe taxes on the profits to the IRS and the state. Fortunately, there are ways to avoid paying taxes on your home sale profits.
Federal capital gains taxes in Georgia
A typical Georgia homeowner selling their primary residence will not owe federal capital gains taxes.
If you have lived in your house for at least two out of the last five years, you can exclude up to $250,000 in profits, or up to $500,000 if filing jointly with your spouse.[2]
In 2023, the typical U.S. home seller made $121,000 on the sale of their home. While this is a healthy profit, it's far below the threshold to be liable for capital gains taxes.[3]
Keep in mind that your profit isn't simply the sale price minus your original purchase price. You can factor in the cost of permanent improvements and other expenses when calculating the total gain. For more information on determining your gain or loss, as well as eligibility requirements for this exclusion, see IRS Publication 523, "Selling Your Home."
If you don't qualify for the exclusion—either because you didn't live in the home long enough or made a large profit from the sale—you may owe capital gains tax. The amount you pay depends on your overall income.
Federal capital gains tax rates for tax year 2024
A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $47,025 for single and married filing separately
- $94,050 for married filing jointly and qualifying surviving spouse; and
- $63,000 for head of household.
A capital gains rate of 15% applies if your taxable income is:
- More than $47,025 but less than or equal to $518,900 for single;
- More than $47,025 but less than or equal to $291,850 for married filing separately;
- More than $94,050 but less than or equal to $583,750 for married filing jointly and qualifying surviving spouse; and
- More than $63,000 but less than or equal to $551,350 for head of household.
However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.[4]
State capital gains taxes in Georgia
In most states, capital gains are taxed as income at the state level, as well.
Georgia generally follows the same exclusion rules as the IRS, allowing $250,000 of gain on home sales ($500,000 for married joint filers), if they owned and used the home as their principal residence for two out of the five years before the sale. In Georgia, any capital gains not subject to exclusions are taxed as ordinary income at 5.49%.»MORE: Avoid capital gains taxes when selling a house
Methodology
The Clever team of researchers gathered data for property taxes, transfer taxes, and capital gains rules using publicly available information from government websites.
Additionally, we utilized the following data:
- Home values, list prices, and sale prices: Based on Zillow data as of August 2024.
- Transfer taxes and mortgage taxes: Based on public data as of February 2024.
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Our team of industry-leading researchers is committed to making homeownership more accessible by educating buyers through guides like this one. We've spent thousands of hours analyzing publicly available data, surveying consumers, and interviewing industry experts. Our research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.
