Raising the property tax exemption threshold for individuals from GEL 40,000 to GEL 100,000 is expected to reduce municipal revenues by a combined GEL 22.3 million. According to the bill’s explanatory note, Tbilisi will face the largest impact, with an estimated GEL 16.1 million reduction in property tax revenue.
The government plans to compensate municipalities for the GEL 22.3 million shortfall from the state budget in 2026, while losses in subsequent years will be considered during the annual budget process. The proposed changes are expected to affect around 81,000 taxpayers.
Under the new model, individuals with annual income between GEL 40,000 and GEL 100,000 would be fully exempt from property tax. For those earning more than GEL 100,000, the tax would remain, with the rate set at 0.8% to 1% of the taxable property’s market value. In 2025, GEL 86.3 million in property tax was assessed on individuals, excluding land, including GEL 22.3 million from the GEL 40,000–100,000 income group.
Tbilisi accounts for about GEL 16.1 million of the projected loss, followed by Batumi at GEL 2.45 million and Kutaisi at approximately GEL 572,000. The amendments, initiated by ruling-party lawmakers, are also expected to apply to property tax declarations for the current year, prompting plans for accelerated parliamentary consideration ahead of the November filing and payment deadlines.
