Atlanta Property Tax Rate 101: An Easy Landlord Guide
The Atlanta property tax rate is a critical tool that helps you evaluate how much it’ll cost to own and maintain your Atlanta property overall. After all, property taxes can be a small expense or a major bill to budget for, depending on the location. Read along to learn about the Atlanta property tax rate, the components of a tax bill, when it’s due, and more.
Main Takeaways:
- You can multiply the mill Atlanta property tax rate (8.87) by your assessed property value and divide by 1,000 to get your total tax bill amount.
Contents of This Article:
- Understanding Property Taxes
- What is the Atlanta Property Tax Rate?
- How to Calculate Property Taxes
- When Are Property Taxes Due in Atlanta?
Understanding Property Taxes
Property managers in Atlanta know that property taxes are crucial to owning a home or investment property. If you’re an investor in Atlanta or looking to buy a property here, it’s important to know how property taxes may impact your monthly mortgage payment or overall investment budget.
In general, property taxes in Georgia are relatively low compared to other parts of the United States. For example, Georgia’s median real estate tax payment is around $2,160 per year. This is around $500 less than the US median of $2,690. Some states, like New Jersey, have very high property taxes, and homeowners here pay around $8,897 per year. However, each county is different; some may be higher than others.
How Property Taxes Are Calculated
Three essential numbers go into calculating your annual Atlanta property tax bill. These include:
- Assessed Value- First, you need to know the current value of your rental property. You can find this number by getting a professional appraisal, which is typically based on local sales data, how much income the property could produce, or the replacement cost minus depreciation. In Georgia, the Board of Tax Assessors determines the fair market value and “assesses” it at 40%.
- Mill Levy or Tax Rate- Next, you’ll need to know the mill levy, or Atlanta property tax rate, to find out how much you’ll pay per dollar of your home’s assessed value. You’ll multiply your area’s mill rate by the assessed rental property value and divide by 1,000 to get your total tax bill.
- Tax Exemptions- You can lower your tax bill if you qualify for tax exemptions or credits. For instance, most homeowners qualify for a homestead exemption.
Factors That Impact Taxes
Remember, property taxes differ depending on several factors. Additionally, the amount you pay can change yearly based on these factors. Some of the most important ones include the following.
- Property Value- The biggest determiner of your property taxes will be your property’s value. If local home prices rise, so does your property value–and your taxes. On the other hand, if local home prices fall, your taxes could, too.
- Government Spending- Local government spending also plays a role in how much you’ll pay in property taxes. When local government bodies need bigger budgets, they’ll increase tax rates, which impacts how much you’ll pay.
- Tax Laws and Policies- Another large factor that’ll impact how much you pay in taxes is state and local policies. Certain laws influence what taxes you’re charged and how much they’ll cost.
What is the Atlanta Property Tax Rate?
The Atlanta property tax rate is rising. According to a press release from July 3, 2024, the Fulton County Board of Commissioners has “adopted a millage rate which will require an increase in property taxes by 3.74 percent.”
The press release states that the increase will result in a millage Atlanta property tax rate of 8.87 mills, increasing the current rate by 0.32 mills. Without the tentative tax increase, the millage Atlanta property tax rate will be no more than 8.55 mills.
However, that’s not the only rate to pay attention to. The total Atlanta property tax rate consists of a combination of rates set by local authorities like the school district, county, and city. For instance, in 2022, the total tax millage in Fulton County was 31.40. However, it may change each year.
How to Calculate Property Taxes
To find how much you’ll owe in property taxes, you need the Atlanta property tax rate, assessed property value, and any exemptions that may lower your bill. Here’s what it may look like for a property worth $400,000.
$400,000 x 40% = $160,000 (Assessed Value)
Next, subtract any exemptions, like a homestead exemption, which may be around $2,000.
$160,000 – $2,000 = $140,000 (Taxable Value After Exemptions)
Next, the taxable value is multiplied by the millage rate set by the Board of Commissioners.
One mill = $1 Tax Per $1,000 Taxable Value
So, if the Atlanta property tax rate is 31.40, here’s how much you’ll pay.
$140,000 x (31.410/1,000) = $4,397.40
This, along with absorption rates, are key factors you should use to decide how much to charge for rent.
Components of an Atlanta Property Tax Bill
When you pay property taxes in Atlanta, some of the funds are distributed to different entities. For instance, the largest portion of your tax bill typically funds local public schools. It helps fund teacher salaries, school maintenance, academic programs, and other educational resources. In 2022, 51% of Atlanta property taxes went to Atlanta Public Schools (APS).
Another significant portion of your taxes (around 25% in 2022) goes to the City of Atlanta to help fund municipal services. The money goes toward public safety, parks and recreation, public works, and other city operations to help keep the city running smoothly.
Finally, the rest of your tax bill (around 24% in 2022) goes toward the Fulton County Government. This portion helps fund services like libraries, public health programs, the court system, and social services.
When Are Property Taxes Due in Atlanta?
The deadline for property taxes in most counties is December 20. But due dates for property taxes can differ from one county to another in Georgia.
For instance, property taxes in the City of Atlanta are due on August 15. However, taxes in Fulton County are due October 15, and property taxes in Dekalb County have two installment due dates–September 30 and November 15.
If you’re wondering how to pay your tax bill, many counties in Georgia offer the option to pay your property taxes online. All you have to do is find your county’s website and search for a “Pay Property Taxes” page. For instance, in Fulton County, you can pay your property taxes on their government tax site.
Let BMG Atlanta Help Lessen Your Workload
Knowing everything you can about property taxes, including how they’re calculated, factors that impact them, and the Atlanta property tax rate, is crucial for real estate investors. After all, you’ll be paying taxes, so it’s best to understand where your money is going. Additionally, you’ll want to budget properly so you’re not left with an overwhelming tax bill.
One way you can ensure accurate tax records is with a professional property management team. Bay Property Management Group may not handle property taxes for you. We send monthly and annual financial statements for all of your properties–one less thing you have to worry about at tax time. Contact BMG today to learn more about our comprehensive rental management services in Atlanta, Georgia.
