Property Tax Relief and Reform Continues to Dominate 2026 Session

Property taxes remain a cornerstone of local funding in Georgia, generating roughly two-thirds of revenue for schools and local services. This reality makes reform efforts both urgent and complex; legislators must balance tax relief with the need to sustain essential public services.

Senate Bill 382, is one of the most significant efforts proposed this year and would require all local governments and school systems to adhere to a statewide cap on property tax increases tied to inflation. The bill builds on a 2024 voter-approved homestead exemption that limits annual increases in taxable home values. 

In the House, lawmakers have advanced additional proposals, including House Bill 1116, which would cap annual property tax growth at 3% and provide new tools for local governments to manage revenue. 

In addition to policy changes, state leaders included direct relief in the fiscal year 2026 budget. The plan allocates hundreds of millions of dollars in property tax relief, with the average Georgia homeowner expected to see a reduction of around $500 on their tax bill.

As the session heads toward its final weeks, property tax reform remains one of the most closely watched—and contested—issues. Lawmakers will continue to negotiate between immediate relief and long-term structural changes, with final decisions likely to shape Georgia’s tax landscape for years to come.

For REALTORS®, homeowners, and local communities alike, the outcome of these debates will have significant implications—not only for affordability, but also for how Georgia funds its schools, infrastructure, and public services in the future.