How does Georgia's HB 581 floating homestead exemption affect my taxes and appeal?
How does Georgia's HB 581 floating homestead exemption affect my taxes and appeal?
HB 581 created a statewide floating homestead exemption (O.C.G.A. § 48-5-44.2) that caps annual increases in a homestead's taxable value to an inflation index — but counties, cities, and schools could opt out by March 2025, so it does not apply everywhere.
House Bill 581, signed April 18 2024 and ratified by voters in November 2024, created a new statewide floating homestead exemption effective January 1 2025, codified at O.C.G.A. § 48-5-44.2.
What it does. For an eligible homestead, the exemption is the difference between the property's current fair market value and an adjusted base-year value. The base-year value can rise each year only by an inflation (CPI) rate set by the State Revenue Commissioner, not by the full market increase. In effect, it caps how fast the taxable value of your home can grow.
- The base for the 2025 digest year is the 2024 assessed value; no inflation index applied for 2025.
- The first inflation index rate under HB 581 applies for the 2026 digest year.
- Example from the DOR: a $300,000 base value with 2% CPI becomes a $306,000 adjusted base year value.
The big catch — opt-outs. HB 581 let counties, cities, and school districts opt out of the floating exemption by following an advertise-and-resolve process, with an early deadline in March 2025. A number of jurisdictions (for example, several school districts and counties) opted out, so the exemption does not apply uniformly across Georgia. Check whether your specific county, city, and school district adopted it before relying on the cap.
How it interacts with your appeal. HB 581 caps the taxable value growth, but your fair market value can still rise on the Annual Notice of Assessment — and FMV is what drives uniformity comparisons and the 40% assessed value. So:
- You may still appeal your fair market value even if the floating exemption limits this year's taxable increase.
- Lowering FMV through appeal can lower or reset your base-year value, compounding the cap's benefit going forward.
- The exemption does not replace the three-year freeze you earn by appealing — both can operate together.
Confirm your jurisdiction's opt-in/opt-out status with your county Board of Tax Assessors and the DOR overview before assuming the cap protects you.