Questions / Buying and selling · Leer en español
What happens to my Georgia homestead exemption (HB 581) when I sell?
It does not transfer. Georgia's floating homestead exemption limits yearly increases in a homestead's assessed value to the rate of inflation, but the base value resets when the home sells. The buyer starts over and must apply for their own exemption.
Updated
What HB 581 does
| Item | Detail |
|---|---|
| Law | HB 581, the Save the Homes Act, signed April 18, 2024 |
| Approved by voters | November 2024 |
| In effect | Taxable years beginning in 2025 |
| What it limits | Yearly increases in a homestead's assessed value, to the rate of inflation |
| Local opt-out | Some cities, counties and school districts opted out by March 1, 2025 |
What happens when you sell
The property's value resets with a sale. Your limited assessment ends with your ownership. The buyer's taxes are based on the reset value, and the buyer must apply for their own homestead exemption.
Why this matters for your sale
A buyer's property tax may be higher than yours. Buyers and lenders use the projected tax, not your current bill, so show buyers a realistic estimate to avoid a surprise late in the deal. Whether your area participates depends on your city, county and school district.
How it works on Chimpre
Your agent lists the current annual property tax with your home, and can note that the amount will be reassessed after sale.
See who is looking for a home like yours
Chimpre introduces your home to agents whose active buyers are searching for a home like yours, in your area, at your price, with the space they need. Your agent shows you who is interested before anything goes public.
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