Georgia homeowners just got a major update to how their property tax bills are calculated. On May 11, 2026, Governor Brian Kemp signed the HOME Act (Senate Bill 33), a law that closes a loophole in the state’s 2024 property tax reform and makes a statewide inflation cap mandatory for every county, city, and school district starting with the 2027 tax year.
If you own a home in Georgia — especially if you’re a longtime owner age 55 to 75 who has watched your home’s assessed value climb fast — here is what actually changed, how it interacts with the senior homestead exemptions you may already have, and what you need to do about it.
What Just Changed — Georgia’s HOME Act (SB 33)
The HOME Act, formally the Homeownership Opportunity and Market Equalization Act, was signed into law on May 11, 2026. Its core change is simple but significant: it makes the inflation-indexed assessment cap that already existed under a 2024 law mandatory for every county, city, and school district in Georgia, effective with the 2027 tax year.
Before SB 33, local governments could opt out of that cap. Most of the state’s largest metro-Atlanta counties did exactly that. SB 33 removes the opt-out entirely, so the cap will apply statewide going forward.
Quick Timeline: HB 581 (2024) to County Opt-Outs to SB 33 (2026)
2024 — HB 581 creates the floating exemption, but allows opt-outs
House Bill 581 created a new statewide “floating homestead exemption” tied to inflation, but it let cities, counties, and school boards opt out of adopting it by March 1, 2025.
2024-2025 — Most metro-Atlanta counties opted out
A large share of the state’s most populous counties and school districts — including several in the metro-Atlanta area — chose to opt out, creating a patchwork where the cap applied in some places and not others.
2026 — SB 33 removes the opt-out, effective statewide for 2027
The HOME Act eliminates that local opt-out. Starting with the 2027 tax year, the floating exemption cap applies everywhere in Georgia, regardless of what a local government decided in 2024-2025.
How the Floating Homestead Exemption Actually Works
The floating exemption doesn’t cap your home’s market value — it caps how fast the taxable value of your homesteaded property can grow each year. That growth is limited to the year-over-year change in the Consumer Price Index (CPI-U), not the full jump in your home’s market value.
If your home’s market value rises faster than inflation — which has been common in many Georgia counties over the past several years — the exemption automatically grows, or “floats,” to absorb the extra difference so your taxable value doesn’t rise faster than CPI.
This cap generally applies to county, school, and most city ad valorem taxes. It does not apply to bonded debt millage rates, which are set separately to repay voter-approved bonds.
A Simple Example: How Much Could This Save You
Here’s a simplified illustration of how the cap works in practice for a homesteaded property:
- Year 1 taxable value: $250,000
- Market value increase: 8% (to $270,000)
- CPI-U increase that year: 3%
- Taxable value under the floating cap: capped at roughly $257,500 (a 3% increase), instead of jumping to the full $270,000 market value
In this example, roughly $12,500 of assessed value growth is shielded from taxation that year — though it isn’t erased permanently. If a home is later sold, the taxable value typically resets to market value for the new owner.
Georgia’s Existing Senior Homestead Exemptions (Don’t Confuse These)
The statewide floating cap is separate from — and easy to confuse with — several existing Georgia homestead exemptions. It’s worth knowing the difference:
| Exemption | Who Qualifies | What It Reduces | Income Test? |
|---|---|---|---|
| Standard homestead exemption | All homesteaded owner-occupants | $2,000 off county/school assessed value | No |
| Age 65+ county exemption | Homeowners 65 and older | $4,000 off county ad valorem taxes | Yes, household income limit applies (Social Security excluded up to a set threshold) |
| Age 62+ school exemption | Homeowners 62 and older | School ad valorem taxes | Yes, similar income test |
| Local “floating” senior exemption (pre-existing in some counties) | Varies by county, often 62+ | Freezes or slows growth in county-assessed value | Varies by county |
| Statewide floating cap (HB 581 / SB 33) | All homesteaded owners statewide, starting 2027 | Caps taxable value growth to CPI-U | No |
Note that some counties already had their own older “floating” or inflation-proof exemption for homeowners 62 and up, separate from the new statewide version. If your county offered one of those, ask your assessor’s office how it will interact with the new mandatory statewide cap.
Does This Replace or Stack With Senior Exemptions?
In most counties, the statewide floating cap under HB 581/SB 33 works alongside existing local senior exemptions rather than replacing them. A homeowner age 65+ who already qualifies for the $4,000 county exemption should still receive that reduction in addition to the CPI-based cap on taxable value growth.
That said, local implementation can vary. Because counties administer these exemptions individually, it’s worth calling your county tax assessor’s office to confirm exactly how the two will be applied together on your specific bill.
Who Needs to Do Anything Right Now
- If you already have a homestead exemption on file, you generally do not need to reapply just because of the new statewide cap — it should apply automatically starting with the 2027 tax year.
- If you’re a new homeowner, or you’re not sure whether a homestead exemption is on file for your property, contact your county tax assessor to confirm your status.
- Remember the standard rule: you generally must own and occupy the home as your primary residence as of January 1 of the tax year to qualify for that year’s exemptions.
How to Apply for a Georgia Homestead Exemption
If you need to apply, here’s the general process:
- File an application with the board of tax assessors in the county where the home is located.
- Watch the deadline — it’s tied to the county’s property tax return due date, which is commonly April 1, though it can vary by county.
- Gather typical required documents: proof of Georgia residency, a valid ID matching the property address, and closing or deed documents showing ownership.
Should You Reapply, Wait, or Check With Your County? A Quick Decision Guide
- If you’ve owned and homesteaded your home for years: you likely don’t need to do anything — the cap should apply automatically in 2027.
- If you bought your home in the last year and haven’t filed for homestead exemption yet: apply now, before your county’s deadline, so you’re on record before 2027.
- If you’re 62 or 65+ and unsure whether you’re already receiving senior exemptions: call your county tax assessor and ask them to confirm which exemptions are currently applied to your account.
- If your county previously opted out of HB 581’s floating exemption: no action needed — SB 33 removes that opt-out for you automatically starting 2027.
FAQ
Does the floating exemption lower my tax bill right away, or just slow future increases?
It mainly slows future increases. It caps how fast your home’s taxable value can grow each year, so it won’t necessarily lower this year’s bill, but it should reduce how much your taxable value — and therefore your tax bill — grows in years when your home’s market value rises faster than inflation.
What happens if I sell my home — does the exemption transfer?
No. The floating exemption is tied to the homesteaded owner and property. When a home is sold, the taxable value typically resets to current market value for the new owner, who would then need to file their own homestead exemption application.
Is this the same everywhere in Georgia after 2027?
Yes, that’s the core purpose of the HOME Act — it removes the local opt-out that created inconsistent rules across counties under the 2024 law, so the CPI-based cap will apply statewide starting with the 2027 tax year.
Bottom Line
Georgia’s HOME Act (SB 33) closes a major loophole from the 2024 property tax reform, making the inflation-based floating homestead exemption mandatory statewide starting in 2027. Most homeowners with an existing homestead exemption don’t need to do anything right now, but new homeowners and anyone unsure of their status should confirm their homestead filing with their county tax assessor before the deadline. If you’re 62 or 65 and older, double-check that your existing senior exemptions are still on file, since the new statewide cap is meant to work alongside them, not replace them.