Key Takeaways
HB 581 created a statewide floating homestead exemption, effective 2025, that caps taxable value growth on homesteaded property to the inflation rate.
It is not a freeze. Your value still rises each year, but only by the inflation rate, not full market gains.
Counties, cities, and school districts could opt out by March 1, 2025. Most metro-Atlanta school districts did, creating a county-by-county patchwork.
HB 92 (2025) let local governments rescind an opt-out by April 30, 2025. Most kept their original choice.
In 2026, Georgia's HOME Act (Senate Bill 33) made the inflation cap mandatory for all counties, cities, and school districts starting in 2027, ending the local opt-out.
Introduction
2026 update: Georgia passed the HOME Act (Senate Bill 33), which makes the inflation-rate assessment cap mandatory statewide and removes counties' and cities' ability to opt out. The opt-out landscape described below reflects the original HB 581 rollout from 2024, which the HOME Act now supersedes going forward.
Georgia reassesses your property every year, and market values across the state have climbed fast. Rising assessments mean rising tax bills. Georgia's HB 581 floating homestead exemption is the state's response to that pressure.
A floating homestead exemption caps how fast the taxable value of your homesteaded property can grow. Instead of tracking your full market gain, your assessed value rises only at the rate of inflation.
Below, we explain how the exemption works, which jurisdictions opted out, what FLOST is, and what comes next. Even with the cap in place, you can still appeal your Georgia property tax assessment if it looks too high.
How HB 581's Floating Homestead Exemption Works
Georgia's House Bill 581 property tax reform passed the state's General Assembly in 2024. Voters approved it in a November 2024 statewide referendum. It creates a new type of property tax relief called a "floating homestead exemption." However, in 2025, our Georgia homeowner survey found that only half of Georgians knew about this newly introduced floating homestead exemption.
The term "floating" in the context of HB 581's homestead exemption refers to the dynamic nature of the exemption's value.
Think of the floating homestead exemption as a protective shield for your home's taxable value:
Base Year: If you have the homestead exemption, 2024 is the base year for your home's taxable value.
Limited Annual Increases: After that, your taxable value can rise only by the state's annual inflationary index rate.
The "Floating" Part: The gap between your home's market value and its inflation-adjusted value becomes your exemption. It floats up as that gap grows.
Importantly, this is not a value freeze. The exemption limits how fast your taxable value rises to the inflation rate. Your value still goes up each year, just more slowly.
Example HB 581 calculation:
2024 fair market value for a home: $300,000
2024 assessed value (40% of market): $120,000
For all properties in 2027 and going forward due to the HOME Act:
Market value increases to $330,000 (a 10% increase)
Without the exemption, the new assessed value would be $132,000 (40% of $330,000)
But with inflation at 3%, your assessed value can rise only to $123,600 ($120,000 plus 3%)
Your floating exemption amount is $8,400 ($132,000 minus $123,600)
This $8,400 is your floating exemption. It represents the portion of your assessed value exempt from taxation under HB 581 and the HOME Act's cap on assessment increases.
Local governments can still raise the millage rate (the tax rate) to bring in revenue, even when your home's assessed value is capped.
See how much you could save by appealing your Georgia assessment. Start your Ownwell appeal today.
Why Was the Save the Homes Act Created?
The Save the Homes Act was designed to:
Protect homeowners from being "taxed out" of their homes when property values rise sharply
Provide more predictable property tax bills that increase gradually
Help long-term residents stay in neighborhoods that see rapid value increases
Think of it like a speed limit for your property taxes. They can still go up, just not as quickly as they might have otherwise.
A key to understanding HB 581 is its resemblance to Chatham County's Stephens-Days Homestead Exemption, in place since 1999.
HB 581's statewide floating homestead exemption mirrors that Stephens-Days exemption. It aims to broaden a successful local tax relief model across Georgia.
One notable difference is that counties, cities, and school districts were allowed to opt in or out of the floating homestead exemption.
Your Neighbors Might Be Paying Less...
Local Government Response: The Opt-In/Opt-Out Landscape
HB 581 gave counties, consolidated governments, municipalities, and local school districts a one-time chance to opt out of the statewide floating homestead exemption.
Governing bodies planning to opt out had to hold three public hearings and pass a resolution by March 1, 2025.
Below are the differences and reasons for some local governments opting in or out.
Opted In | Opted Out |
|---|---|
The floating exemption applies (or whichever exemption benefits the homeowner more). | Many counties and cities already had local homestead exemptions, some offering greater or different relief than the new statewide floating exemption. |
It could provide immediate property tax relief to homeowners in counties with limited pre-existing homestead exemptions. | School districts were concerned about reduced revenue growth from slower property tax collections if value growth exceeded inflation. |
Counties and municipalities could implement a new Floating Local Option Sales Tax (FLOST) of up to 1% to offset property taxes. School districts cannot participate in the FLOST, which is one reason many opted out. |
Who Opted In and Who Opted Out?
Below are major counties and school districts that opted in or opted out of HB 581's floating homestead exemption.
Remember, though, the 2026 HOME Act supersedes this law, so counties and cities can no longer opt out in 2027 and going forward.
Jurisdiction | Opt-In/Opt-Out |
|---|---|
Atlanta (City) | Opt-Out |
Barrow County Schools | Opt-Out |
Bartow County Schools | Opt-Out |
Bibb County Schools | Opt-Out |
Butts County Schools | Opt-Out |
Catoosa County | Opt-In |
Catoosa County Schools | Opt-In |
Chatham County | Opt-Out |
Chatham County Schools | Opt-Out |
City of Lilburn | Opt-In |
Clarke County Schools | Opt-Out |
Clayton County | Opt-Out |
Cobb County | Opt-Out |
Cobb County Schools | Opt-Out |
Dalton Public Schools | Opt-Out |
DeKalb County | Opt-Out |
DeKalb County Schools | Opt-Out |
Dougherty County Schools | Opt-Out |
Douglas County Schools | Opt-Out |
Dublin City Schools | Opt-Out |
Forsyth (City, Monroe Co.) | Opt-In |
Fort Oglethorpe (City, Catoosa Co.) | Opt-In |
Fulton County | Opt-Out |
Fulton County Schools | Opt-Out |
Gwinnett County | Opt-Out |
Gwinnett County Schools | Opt-Out |
Heard County Schools | Opt-Out |
Houston County Schools | Opt-Out |
Lowndes County | Opt-Out |
Monroe County | Opt-Out |
Newton County | Opt-In |
Newton County Schools | Opt-Out |
Oglethorpe County Schools | Opt-Out |
Palmetto (City) | Opt-Out |
Ringgold (City, Catoosa Co.) | Opt-In |
Savannah (City) | Opt-Out |
Social Circle (City) | Opt-Out |
Ware County Schools | Opt-Out |
Whitfield County Schools | Opt-Out |
The Potential for Divergence: Two Separate Local Tax Systems?
Georgia's decision to let local governments opt out has created the potential for two distinct local tax systems operating in parallel across the state.
1. Divergence in Property Tax Relief
Homeowners in counties or districts that opted in could face very different tax rules and degrees of relief. That gap can appear even between properties with similar market values.
2. Revenue Complexities
HB 581 will likely add administrative complexity for the Georgia Department of Revenue and county tax assessors. They must track two different sets of property tax rules based on each entity's opt-in or opt-out status.
The optional FLOST will also create uneven local tax burdens across the state. Residents in counties that adopt the FLOST could see a different overall burden than those that opted out or could not levy it.
3. Intrastate Movement
The impact is uncertain, but different local tax systems could influence where people and businesses choose to live or locate. Tax burdens are often a factor in those decisions.
Areas that adopted the floating homestead exemption could also create structural disincentives for new homebuyers. The base-year assessed value resets when a property sells.
The Future of Property Taxation in Georgia
Georgia's experiment with the floating homestead exemption marks a major shift in state property tax law. As with any major change, the system will likely be adjusted over time.
The first revision came with House Bill 92 in 2025. It let local bodies rescind their opt-out decision by April 30, 2025. According to the Tax Foundation's analysis of the reform, most kept their original choice to opt out.
Georgia's General Assembly has continued to refine the rules. Governor Kemp signed the HOME Act (Senate Bill 33) into law on May 11, 2026.
The HOME Act makes the inflation-rate cap on homestead assessments mandatory for every taxing jurisdiction starting in 2027. Counties, cities, and school districts can no longer opt out.
It also creates a Local Homestead Option Sales Tax (LHOST) that counties can put to voters beginning in 2028 to fund additional homestead relief.
As a homeowner, it is worth staying informed about:
Which exemptions apply in your jurisdiction (county, city, and school district)
How your local governments chose to implement the new system
Additional changes that may come in future legislative sessions
Understanding these changes helps you prepare and take advantage of available tax relief. Even with the cap, you can still appeal an over-assessment. A successful Georgia appeal can lock in your assessed value for three years under the 299(c) three-year assessment freeze.
At Ownwell, we are committed to keeping Georgians informed about their property taxes. We can also help homeowners and commercial property owners appeal their assessments today.
How Much Are You Over Paying?
Frequently Asked Questions
Is the floating homestead exemption a property tax freeze?
No. It caps annual growth of your taxable value to the inflation rate, so your value still rises, just more slowly.
How do I know if my county, city, or school district opted out?
Check the opt-in/opt-out table above and confirm with your county tax assessor. That table reflects the HB 581 era; under the HOME Act, the opt-out ends and the cap becomes mandatory statewide beginning in 2027.
Does HB 581 replace my existing homestead exemptions?
No. You receive whichever exemption provides the greater benefit, so existing local exemptions still apply where they help more.
What is FLOST?
FLOST is a Floating Local Option Sales Tax of up to 1% that counties and cities, but not school districts, can levy to offset property taxes.
Can I still appeal my assessment under HB 581?
Yes. You can appeal an over-assessment, and a successful appeal can lock your value for three years under Georgia's 299(c) freeze.
Don't let rising property values drive up your taxes for the next three years. Appeal with Ownwell today to lock in your assessed value with a successful Georgia appeal.
