Georgia Ad Valorem Calculator

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Georgia Ad Valorem Tax Calculator

(e.g., Homestead Exemption)
(e.g., 25 mills = $25 per $1,000 of taxable value)
function calculateAdValoremTax() { var fairMarketValueInput = document.getElementById("fairMarketValue").value; var totalExemptionsInput = document.getElementById("totalExemptions").value; var millageRateInput = document.getElementById("millageRate").value; var fairMarketValue = parseFloat(fairMarketValueInput); var totalExemptions = parseFloat(totalExemptionsInput); var millageRate = parseFloat(millageRateInput); var resultDiv = document.getElementById("result"); if (isNaN(fairMarketValue) || fairMarketValue < 0) { resultDiv.innerHTML = "Please enter a valid Fair Market Value."; return; } if (isNaN(totalExemptions) || totalExemptions < 0) { resultDiv.innerHTML = "Please enter valid Total Exemptions."; return; } if (isNaN(millageRate) || millageRate < 0) { resultDiv.innerHTML = "Please enter a valid Millage Rate."; return; } // Step 1: Calculate Assessed Value (40% of Fair Market Value in Georgia) var assessedValue = fairMarketValue * 0.40; // Step 2: Calculate Taxable Value (Assessed Value minus Exemptions) // Ensure taxable value does not go below zero var taxableValue = Math.max(0, assessedValue – totalExemptions); // Step 3: Calculate Ad Valorem Tax // Millage rate is per $1,000 of taxable value var adValoremTax = (taxableValue / 1000) * millageRate; resultDiv.innerHTML = "

Calculation Details:

" + "Fair Market Value: $" + fairMarketValue.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" + "Assessed Value (40%): $" + assessedValue.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" + "Total Exemptions: $" + totalExemptions.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" + "Taxable Value: $" + taxableValue.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" + "Millage Rate: " + millageRate.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + " mills" + "Estimated Annual Ad Valorem Tax: $" + adValoremTax.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ""; }

Understanding Georgia Ad Valorem Tax

Ad valorem tax, commonly known as property tax, is a tax based on the assessed value of real estate or personal property. In Georgia, this tax is a primary source of revenue for local governments, funding essential services such as schools, public safety, and infrastructure.

How Georgia Ad Valorem Tax is Calculated

The calculation of ad valorem tax in Georgia involves several key steps:

  1. Fair Market Value (FMV): This is the estimated value of your property as determined by your county's tax assessor's office. It represents what the property would likely sell for on the open market.
  2. Assessment Ratio: In Georgia, real property is assessed at 40% of its fair market value. This means that only 40% of your property's FMV is considered for taxation purposes.
  3. Assessed Value: This is calculated by multiplying your property's Fair Market Value by the 40% assessment ratio. For example, a property with an FMV of $300,000 would have an assessed value of $120,000 ($300,000 * 0.40).
  4. Exemptions: Various exemptions can reduce your property's assessed value, thereby lowering your tax burden. The most common is the Homestead Exemption, available to homeowners who occupy the property as their primary residence. Other exemptions may include those for seniors, disabled veterans, or certain agricultural properties. These exemptions are subtracted from the assessed value.
  5. Taxable Value: This is the assessed value minus any applicable exemptions. This is the final value upon which your tax is actually calculated.
  6. Millage Rate: The millage rate (or mill rate) is the tax rate applied to your taxable value. A "mill" represents $1 of tax per $1,000 of taxable value. Millage rates are set annually by local taxing authorities (county, city, school board) and can vary significantly by location. For instance, a millage rate of 25 mills means you pay $25 for every $1,000 of your taxable property value.
  7. Ad Valorem Tax: The final tax amount is determined by multiplying your taxable value (divided by 1,000) by the millage rate.

Example Calculation:

Let's use the default values in the calculator:

  • Fair Market Value: $300,000
  • Total Exemptions: $10,000 (e.g., basic homestead exemption)
  • Millage Rate: 25 mills
  1. Assessed Value: $300,000 * 0.40 = $120,000
  2. Taxable Value: $120,000 – $10,000 = $110,000
  3. Ad Valorem Tax: ($110,000 / 1,000) * 25 = $110 * 25 = $2,750

In this example, the estimated annual ad valorem tax would be $2,750.

It's important to note that this calculator provides an estimate. Actual tax bills may include additional fees or assessments not covered by the ad valorem calculation, and millage rates can change annually. For precise figures, always consult your local county tax assessor's office.

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