What the new property tax law means for homeowners and why you should still appeal
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What just happened
Governor Brian Kemp signed Senate Bill 33 formally the Homeownership Opportunity and Market Equalization (HOME) Act of 2026 into law on May 11, 2026. The HOME Act builds on the floating homestead exemption that Georgia voters approved in 2024 (HB 581) and adds new protections for owner-occupied homes statewide.
What the HOME Act does
Statewide homestead cap (effective 2027). Annual increases in the taxable value of homestead properties are capped at the rate of inflation. Cities, counties, and school districts can no longer opt out of this cap.
Voter approval for large budget increases: Beginning in 2027, local governments and school districts must get voter approval before adopting budgets projected to push property-tax revenue above the greater of 3% or inflation, with limited exceptions for economic growth and declared emergencies.
LHOST (Local Homestead Option Sales Tax): Counties may, with voter approval, levy a new 1% local sales tax dedicated to funding additional homestead exemptions. The earliest possible LHOST referendum is November 2027; the earliest collections begin January 1, 2028.
How the cap actually works
The floating homestead exemption is the mechanism behind the cap. Each year your county still sets a fair market value (FMV) for your home. If that FMV grows faster than inflation, the exemption “floats upward” to absorb the excess so the taxable portion of your assessment can't rise more than the inflation rate.
Important: your **base year** the FMV that locks in your floating exemption resets when you sell, transfer ownership, or make significant improvements. For most current homeowners, the base year was set in 2024 (the year before HB 581 took effect statewide).
Why you should still consider an appeal
This is the most important takeaway, and the part most homeowners miss:
The cap limits how fast your taxable value can grow each year. It does not cap the fair market value your county sets on your assessment notice. The county still issues an FMV every year, and that figure is the foundation for everything including the cap. If the market is rising faster than 3%, or the rate of inflation, your taxable value can continue to rise year after year. Also, there is nothing stopping them from increasing millage (tax) rates.
If your county's FMV is overstated right now, you will keep paying tax on that inflated base for as long as you own the home. The cap slows growth from your base; it does nothing to lower a base that's already too high.
A successful appeal lowers your starting point. Combined with the HOME Act's cap, an appeal locks in a lower base AND limits future increases. The savings compound every year you stay in the home.
Common misconceptions
“I don't need to appeal anymore because of the cap." The cap doesn't fix an over-assessed base it just slows future increases from whatever your current value happens to be.
"The cap protects me from over-assessment." No. The cap limits taxable-value growth, not a fair market value that's too high to begin with.
"Appealing will cost me my homestead exemption." No. An appeal does not affect your homestead status.
"The HOME Act caps my tax bill." No. It caps the growth of taxable value on homestead property. Your bill can still rise if millage rates increase, and millage rates can rise outside the voter-approval threshold in certain cases.
"The cap applies to all my properties." No. It only applies to your owner-occupied primary residence. Rentals, second homes, commercial buildings, and vacant land are not covered.
What hasn't changed
- Your annual right to appeal your assessment is preserved.
- Non-homestead properties are not subject to the HOME Act cap. Their appeal options are exactly as before.
- Standard grounds for appeal (value, uniformity, taxability) remain unchanged.
- Deadlines and procedures under O.C.G.A. § 48-5-311 are unchanged.
- The HOME Act does not roll back your prior-year assessment, it controls future increases from this point forward.
One thing to keep an eye on
The HOME Act faces a possible constitutional challenge. Some legislators have argued that because SB 33 raises and reallocates revenue but originated in the Senate, it violates the origination clause of the Georgia Constitution, which requires revenue bills to start in the House of Representatives. If a court strikes it down, the cap and LHOST authorization could be vacated. Until then, the law is in effect and county assessors are expected to follow it.
The bottom line
The HOME Act is good news for Georgia homeowners. But it makes a successful appeal more valuable, not less. The lower the base value you lock in this year, the more the cap saves you in every year going forward.
General information only. Not legal, tax, or financial advice. Property tax outcomes depend on the specific facts of your property and county.
