The property tax exemption threshold for individuals is set to increase from GEL 40,000 to GEL 100,000 under proposed amendments to Georgia’s Tax Code. The changes, initiated by Georgian Dream lawmakers, would exempt individuals earning GEL 40,000–100,000 annually from property tax and affect around 81,000 taxpayers.
Under the current system, individuals with annual income of up to GEL 40,000 are exempt, while those earning GEL 40,000–100,000 are taxed at 0.05%–0.2% of the market value of taxable property. For individuals earning more than GEL 100,000, the current rate is 0.8%–1%. The proposed reform would eliminate the tax for the middle-income group, while keeping the 0.8%–1% rate for those earning above GEL 100,000.
Based on 2025 declarations, individuals in the GEL 40,000–100,000 income group were assessed a combined GEL 22.3 million in property tax, meaning municipalities would lose this revenue under the reform. Tbilisi would face the largest impact, with a potential GEL 16.09 million reduction, followed by Batumi at GEL 2.45 million and Kutaisi at about GEL 572,000.
The state budget will compensate municipalities for the GEL 22.3 million shortfall in 2026, while compensation in subsequent years will be addressed through the respective annual budgets. The changes are expected to apply to property tax declarations for the current year, with an accelerated parliamentary procedure planned ahead of the November 1 filing deadline and November 15 payment deadline.
