Georgia’s Parliament has approved, in its first reading, amendments that would raise the property tax exemption threshold for individuals from GEL 40,000 to GEL 100,000 in annual income. Finance and Budget Committee Chairman Paata Kvizhinadze said the measure is part of a broader tax reform package being prepared by the Ministry of Finance.
Kvizhinadze said the amendment was separated from the larger bill and considered under an expedited procedure so that individuals earning between GEL 40,000 and GEL 100,000 would not have to pay property tax this year. “This is not the final version. The Finance Ministry is preparing the larger bill, which has taken some time because it affects virtually everyone and requires various details, including the impact on local government revenues,” he said.
Under the current rules, households with annual income of up to GEL 40,000 are exempt from property tax. For those earning between GEL 40,000 and GEL 100,000, the tax rate ranges from 0.05% to 0.2% of the property’s market value, while the rate for incomes above GEL 100,000 ranges from 0.8% to 1%. The proposed change would remove the property tax obligation for the GEL 40,000–100,000 income group.
According to the bill’s explanatory note, the change would affect approximately 81,000 taxpayers. Based on 2025 declarations, the property tax paid by this group amounted to GEL 22.3 million in total. If the amendment takes effect, municipalities would therefore receive approximately GEL 22.3 million less in property tax revenue.
