Homestead Tax Exemption Update: Critical Relief for Hardworking Georgians

The newly updated homestead tax exemption, a 2024 House priority, represents a major win for hardworking Georgians. These changes, which include capping property tax increases, will provide much-needed relief to taxpayers and double-down on our commitment to returning more back to you and your families.

Homestead Tax Exemption Overview

Starting this year, the new Floating Homestead Exemption will limit how much your property taxes can increase each year. Here’s how this will help taxpayers:

Protection from Large Increases: Your property’s assessed value will now be tied to the Consumer Price Index, preventing sharp jumps in your tax bill, even when home values rise.
Coverage Across All Taxing Authorities: Whether it’s city, county, or school taxes, this exemption provides for protection across the board.
Additional Savings Opportunity: Counties that adopt this exemption can also implement a Local Option Sales Tax (LOST) to use sales tax revenue to further reduce and some cases eliminate property taxes.

This legislation wouldn’t be possible without the tireless work of Ways and Means Committee members and staff. Through the leadership of Gov. Brian Kemp and Speaker Burns along with the ongoing commitment of our House and Senate colleagues, we’ve passed historic tax cuts that returned more than $5 billion dollars back to Georgians.

At the same time, we've fully funded k-12 education once again while our Revenue Shortfall Reserve, or rainy-day fund, is maxed out for the fourth consecutive year.

Just as importantly, we are committed to protecting homeowners and their families from the financial burden of sudden tax hikes, particularly during times of runaway inflation, sky-high interest rates and increased costs of living.

Additional Tax Relief for Georgians

Alongside the property tax reforms, there are also important updates to our state income tax system effective this year:

Lower Flat Tax Rate: As of January 2024, the personal income tax rate will be reduced to 5.39%, with further reductions planned, potentially reaching 4.99%.
Higher Standard Deductions: Single filers will see their standard deduction rise to $12,000, and for married couples filing jointly, it will increase to $24,000.
Increased Dependent Exemption: For families, the dependent exemption has been increased to $4,000 per dependent, easing the financial strain on households.

Thank you for your continued trust. Together, we are building a Georgia where families can thrive, homeowners are protected, and more of your money stays where it belongs—with you.

As always, we continue working to pursue simple, smart and effective government that best serves you and your families. Please do not hesitate to reach out should you need assistance or have any questions.

In service,

Shaw Blackmon