Metro Atlanta Property Taxes Among Highest in US - Atlanta Real Estate Forum (2024)

The 2023 property tax analysis by ATTOM Data Solutions on metro areas with populations of one million or more shows a seven percent average increase in property taxes for U.S. single-family homes. Metro Atlanta property taxes had the fifth largest increase in the country year-over-year, with a 15.2 percent increase. Needless to say, theGeorgia capital took a big leap in taxes between 2022 and 2023 and homeowners are feeling the squeeze.

Atlanta is a bit of an anomaly, because rates are typically significantly lower in most Southern and Western states, with Hawaii, Arizona, Alabama, Delaware and Tennessee having super-low tax rates. Metro areas like Phoenix, A.Z. and Nashville, T.N. had some of the lowest rates at 0.38 percent and 0.45 percent.

Tax rates for homeowners in all of metro Atlanta’s core five counties, exceeded the national average tax rate of 0.87%, with the exception of Cobb County. Those who reside in Fulton and Gwinnett paid the highest property tax in all of the Georgia counties assessed by Attom last year, with taxes on average of $6,931 in Fultton and $4,276 in Gwinnett.

The Northeast and Midwest states of Illinois, New Jersey, Connecticut, New York and Nebraska have the highest tax rates on homes in the country. This is why Georgia, and specifically the metro Atlanta area, typically sees so much relocation from these states.

This analysis spanned 89.4 million homes, totaling $363.3 billion in property taxes levied on single-family homes. An increase of 6.9 percent from 2022, this dramatic increase represents one of the largest growth rates in the last five years. For reference, the growth rate in 2022 was approximately 3.6 percent, making the 2023 growth almost double.

Last year, the average tax on single-family homes jumped 4 percent to $4,062 per household. That marks a distinctive increase from the 3 percent increase in 2022. With that increase, there has been a shift to building smaller lots. In 2023, 65% of new single-family detached homes were built on lots under 9,000 square feet. A whopping 40% of single-family detached homes are being built on lots 7,000 square feet or less.

Due to average tax statistics, the effective tax rate changed from 0.83 percent to 0.87 percent in 2023. Although a small change, the increase is the first one since 2017.

Rate trends this year will depend on multiple factors. Would the market see a resurgence with lower mortgage rates and a thin supply of available properties? Further increases in home values and slim property availability will likely lower effective rates. However, an opposite reaction is also likely if prices stay put.

To view an interactive map of property tax data, click here.

Will Georgia Property Taxes Continue to Escalate?

In response to escalating property tax rates, Georgia’s state lawmakers have taken steps to address the issue. A bill endorsed last month by the Georgia House of Representatives that was initially introduced in the Senate, aims to cap annual property tax increases at 3% for homeowners who qualify for a homestead exemption.

This legislation is expected to make homeownership more accessible in Atlanta, a city currently grappling with high mortgage rates, low housing inventory and a highly competitive housing market. As of April 4, according to Freddie Mac, the average rate for a 30-year fixed mortgage was 6.82%. In Atlanta, the median home price is $390,373, based on data from Zillow Group Inc.

Georgians will decide whether to implement this tax cap when they vote on the amendment in a statewide referendum this November. Should the majority vote in favor, the amendment will be enacted starting January 1, 2025.