Property Tax in Georgia in 2026: Rates, Income Thresholds, Filing and Rules for Foreign Owners

Property tax in Georgia is an annual obligation that can apply to individuals who own real estate and certain other assets in the country. For many apartment and house owners, the most important questions are whether the GEL 40,000 family-income exemption applies, which municipal tax rate should be used, what value should be declared and whether a return must be filed by 1 November.

The rules are particularly important for foreign owners, Georgian citizens living abroad, landlords and individuals who own property in Tbilisi but earn income from several sources. Property tax is not determined only by the purchase price of the apartment or by whether the property is rented. The calculation depends on the type and location of the asset, market value, ownership period, family income and any available exemptions.

At IBCCS TAX, our teams in Tbilisi and Batumi provide taxation services in Georgia, including property-tax reviews, calculation of individual liabilities, preparation of returns, Revenue Service support and coordination of related tax issues for residents and non-residents. This guide explains the 2026 rules for individuals and focuses on the practical questions most property owners need to resolve before filing.

What Is Property Tax in Georgia?

Property tax is a local tax administered within Georgia’s national tax framework. For individuals, it can apply to qualifying property located in Georgia and is assessed annually. The applicable rate for non-land property is linked to the taxpayer family’s income level and to the rate adopted by the relevant municipality within the statutory limits.

This is different from tax on rental income, tax on the sale of property or taxes connected with a business. A person can have several separate tax obligations connected with the same apartment. For example, an owner may have an annual property-tax obligation because of the value of the property and family income, while rental income from the same apartment can create a separate income-tax issue.

Who Pays Property Tax in Georgia?

A natural person can be a property-tax payer on qualifying assets owned in Georgia. The Tax Code also contains rules for property received from a non-resident under a lease and, where a natural person carries out economic activity, for certain fixed assets, uninstalled equipment, unfinished construction and leased property recorded in the business accounting records.

A person can also be treated as a property-tax payer on taxable property that is owned or used by that person but remains registered in the name of a deceased individual, subject to the exceptions in the Tax Code. This can matter where inheritance registration has not yet been completed even though the property is already being possessed or used.

What Property Is Taxable for Individuals?

For an individual, the taxable-property rules are wider than residential apartments and houses. The Tax Code specifically includes several types of assets.

• Real estate, including apartments, houses, commercial premises, buildings or parts of buildings.
• Unfinished construction.
• Yachts and cutters.
• Helicopters and airplanes.
• Motor cars classified under Code 8703 of Georgia’s foreign-trade commodity nomenclature.
• Property received from a non-resident under a lease agreement in the circumstances covered by the Tax Code.
• For individuals conducting economic activity, certain fixed assets, uninstalled equipment, unfinished construction and leased property connected with that activity.

 

The fact that a property is vacant does not by itself remove the property-tax rules. Similarly, a residential apartment does not become exempt simply because it is used personally rather than rented. The main exemption for ordinary non-land property is connected with family income rather than with whether the property produces rent.

The GEL 40,000 Family Income Exemption

One of the most important rules for individual property owners is the GEL 40,000 family-income exemption. A natural person’s taxable property other than land is generally exempt from property tax where the family’s income received during the year preceding the relevant tax year does not exceed GEL 40,000.

For practical 2026 compliance, this means the previous calendar year’s family income is central to determining whether the non-land property-tax exemption is available. The Revenue Service property-tax calculator uses the previous calendar year’s income when determining the current year’s liability.

The exemption should not be confused with a general property-value exemption. A high-value apartment may still be exempt if the relevant family-income condition is satisfied, while a lower-value apartment may be taxable if the family income exceeds the threshold.

Land Is Different

The GEL 40,000 exemption does not generally apply to land. A person who is exempt from property tax on an apartment because family income is below GEL 40,000 can still have a land-tax obligation. Land should therefore always be reviewed separately.

What Counts as Family Income for Property Tax?

The property-tax income test is broader than taxable salary. For this purpose, family income can include income even where a separate tax exemption applies. The Tax Code specifically refers to income from economic activity, other income and gross salary, subject to the exclusions and special rules provided by law.

In practice, the Revenue Service income calculator asks for categories such as gross salary, rental income, interest, gifts or inherited property where relevant, income from sale of property, ordinary entrepreneur income, Small Business Status income, dividends and other income. The correct calculation should be based on the specific legal categories rather than simply using the amount that appeared on an income-tax return.

Small Business Status and the Property Tax Income Test

A useful special rule applies to individuals with Georgia’s Small Business Status. For property-tax purposes, 25% of income taxable under the Small Business special regime is included in the family-income calculation, together with taxable income that falls outside that special regime.

This is different from the 1% Small Business tax calculation itself. Our guide to Georgia’s 1% tax regime and Small Business Status explains the separate turnover-tax rules. For property tax, the relevant question is how much of that income is included in the family-income test.

Income That May Be Excluded from the Property Tax Calculation

The Tax Code excludes certain items from the family-income calculation. Examples include property received from family members through inheritance, gift or divorce and income from the sale of a residential apartment or house that qualifies for the long-term ownership exemption specified by the Tax Code. Income from qualifying Micro Business and fixed-tax activities is also excluded in the circumstances provided by law.

Because these exclusions are specific, property owners should avoid assuming that all tax-exempt income is automatically ignored. The property-tax income test can include income that is exempt for income-tax purposes unless the Property Tax chapter provides an exclusion.

Who Counts as Family for the GEL 40,000 and GEL 100,000 Tests?

The Revenue Service describes the family for property-tax purposes as the individual, the individual’s spouse, minor child and stepchild. It can also include parents, children and stepchildren, siblings, grandparents and grandchildren where they live permanently with the taxpayer and maintain a common household.

For the extended group of relatives, the taxpayer determines which of the listed persons permanently live with them and share the household. This means the property-tax analysis is not always based only on the registered property owner. Family composition can materially affect whether the GEL 40,000 exemption or the higher-rate income threshold is reached.

Property Tax Rates for Individuals in Georgia

Where the GEL 40,000 exemption does not apply, the annual rate for an individual’s taxable non-land property is differentiated by family income. The Tax Code establishes the permitted rate range, while the municipality determines the local rate within those limits.

Family income	General statutory rate range	Practical effect
Up to GEL 40,000	Generally exempt for taxable property other than land	Land must still be reviewed separately
Above GEL 40,000 but below GEL 100,000	0.05%-0.2% of market value	Check the rate adopted by the municipality
GEL 100,000 or more	0.8%-1% of market value	Check the rate adopted by the municipality

The statutory ranges mean that a single national percentage should not be used for every property owner. The property’s municipality matters. A person owning property in Tbilisi may therefore have a different rate from an owner in another municipality even where both have the same family income.

Property Tax Rates in Tbilisi

Tbilisi is particularly relevant for international property owners and investors. Under the current Tbilisi municipal rules, the annual rate on an individual’s taxable non-land property is 0.2% of market value for families with income below GEL 100,000 and 0.8% for families with income of GEL 100,000 or more.

The GEL 40,000 exemption still needs to be considered first. In other words, an individual with relevant family income not exceeding GEL 40,000 can generally be exempt on non-land taxable property, while a family above GEL 40,000 and below GEL 100,000 can move into the 0.2% Tbilisi rate.

Example: Tbilisi Apartment and Family Income of GEL 70,000

Assume an individual owns a Tbilisi apartment with a year-end market value of GEL 300,000 and the relevant family income is GEL 70,000. The GEL 40,000 exemption does not apply, but the family income is below GEL 100,000. Using the current Tbilisi rate of 0.2%, the annual property tax would be approximately GEL 600, subject to the ownership period and any other applicable relief.

Example: Tbilisi Apartment and Family Income of GEL 150,000

Using the same GEL 300,000 market value, but with relevant family income of GEL 150,000, the current Tbilisi rate is 0.8%. The annual property tax would therefore be approximately GEL 2,400, again subject to the actual ownership period and any applicable relief.

How Is Property Value Determined for Property Tax?

For an individual, property tax on taxable non-land property is based on market value at the end of the relevant tax year. This is an important distinction from the rules that apply to enterprises, where average annual net book value can be relevant.

The original purchase price is not automatically the correct taxable value. A property bought several years ago may have increased or decreased in market value. The Revenue Service indicates that market-value information can be obtained from different information sources or determined by an appropriately authorised valuer.

Owners should retain a reasonable basis for the value used in the return. This can be particularly important where the property is high-value, was purchased significantly below market price, was substantially renovated or where comparable local prices have moved materially.

Property Owned for Only Part of the Year

An individual’s property tax on taxable non-land property is calculated in proportion to the period during which the person owned the property in the relevant tax period. This matters for purchases and disposals completed during the year.

For example, a person who acquired an apartment part-way through the year should not automatically calculate tax as though the property had been owned for the full 12 months. The ownership period and year-end market value need to be reflected under the applicable rules.

Property Tax for Foreigners and Non-Residents in Georgia

Foreign ownership does not automatically remove Georgian property-tax obligations. The Revenue Service confirms that property tax applies to property located in Georgia, so an owner living abroad can still be within the Georgian property-tax system.

Residence and citizenship can, however, affect the family-income analysis. The Tax Code contains a specific rule under which the income of a non-resident Georgian citizen is determined by reference to Georgian-source income for this property-tax purpose. International owners who do not fall within that specific rule should avoid assuming that the same treatment automatically applies and should review the family-income calculation based on their own facts.

Non-resident owners should also consider practical compliance. Filing, payment, access to the Revenue Service portal and correspondence with the tax authority may need to be managed remotely or through a representative in Georgia.

For individuals relocating to or from Georgia, property tax can be reviewed together with wider expat services in Georgia, tax residency and ongoing personal tax obligations.

Does Renting Out Property Change the Property Tax?

Renting out an apartment does not replace the annual property-tax analysis. The property can remain within the property-tax system and the rental income can also create a separate income-tax obligation.

Rental income can also affect the family-income calculation used for the GEL 40,000 exemption and the property-tax rate. A property owner should therefore review both sides of the position: the annual tax on the property itself and the tax treatment of income generated by that property.

The correct rental-income treatment depends on the nature of the property, tenant, use and ownership structure. Owners should avoid treating the annual property-tax return as a substitute for any separate income-tax reporting connected with rent.

Land Tax in Georgia: A Separate Calculation

Land is part of Georgia’s property-tax system, but it follows different rules from an apartment or building. The GEL 40,000 family-income exemption for non-land property does not automatically exempt land, and the tax is driven primarily by the type, size and location of the land.

Non-Agricultural Land

For non-agricultural land, the Tax Code sets a basic annual rate of GEL 0.24 per square metre. The relevant municipality then applies a territorial coefficient, which may not exceed 1.5. As a result, the final land-tax amount depends on location rather than only on the owner’s family income.

Agricultural Land

Agricultural and forest land use a different rate structure, including rates by municipality and land category. Municipal decisions can also affect the final amount. Owners of agricultural land should therefore confirm the classification and local rate instead of applying the non-agricultural GEL 0.24 per square metre formula.

Who Is the Land Taxpayer?

Land-tax liability is generally determined by reference to the person who possesses or uses the land under the statutory rules as of 1 April of the tax year. This date is important because land information in an individual’s property-tax return relates to the current tax year, while non-land property information generally relates to the previous tax year.

Property Tax Filing Deadline: 1 November

A natural person generally files the annual property-tax return no later than 1 November of the calendar year. The return records taxable non-land property based on the previous tax year and taxable land based on the current tax year.

For the 2026 filing cycle, this distinction is particularly important. Owners should review the property and family-income information relating to the relevant 2025 period for non-land property, while land is considered under the current-year land rules.

Property Tax Payment Deadline: 15 November

The payment deadline for an individual’s property tax and property tax on land is generally 15 November. Filing the return by 1 November does not extend the payment date.

Owners should therefore complete valuation and income review before the filing deadline rather than leaving the calculation until mid-November. Where the property value or family composition is unclear, the tax analysis can take longer than the electronic submission itself.

Do Individuals Need to File a Property Tax Return Every Year?

Not always. The Tax Code provides situations in which an individual may not need to submit a new annual return. If the previous year’s property-tax return was filed or the Revenue Service assessed the tax and the relevant data has not changed, the tax authority can automatically assess the current obligation using the previous information.

If a return is filed later for the same period, it is treated as an amended return. This makes it important to check whether the previous data is still correct. A property purchase, sale, change in market value, change in family income, new land or another material change can make reliance on the previous assessment inappropriate.

What If There Is No Property Tax Obligation This Year?

If an individual has no property-tax obligation because an exemption applies, a return may not be required. However, where the person was a property-tax declarant in the previous year, the Tax Code requires the person to notify the tax authority of the decision not to file by 1 November in the prescribed form.

This is an easy point to miss. A person who sold the property, fell below the income threshold or otherwise ceased to have an obligation should not simply ignore the previous property-tax profile without checking whether a no-filing notification is needed.

Common Property Tax Mistakes in Georgia

Property-tax issues often arise from assumptions rather than complex calculations. The following mistakes are particularly common among individual and foreign property owners:

• Using the purchase price automatically instead of reviewing the relevant year-end market value.
• Looking only at the owner’s salary and ignoring income of other family members included in the property-tax family definition.
• Ignoring rental income, interest, business income or other amounts that may form part of the family-income calculation.
• Assuming that the GEL 40,000 exemption applies to land.
• Applying a national 1% rate to every property instead of checking the statutory income band and the relevant municipal rate.
• Assuming a foreign owner or non-resident is automatically exempt because the person lives outside Georgia.
• Confusing annual property tax with tax on rental income or tax on the sale of property.
• Failing to update a previous-year property-tax position after a property purchase, sale or material change in value.
• Missing the 1 November filing deadline or the 15 November payment deadline.
• Assuming no action is needed when the current year has no liability even though the individual filed a property-tax return in the previous year.

When Should a Property Owner Request a Tax Review?

A property-tax review is particularly useful where the owner has family income close to GEL 40,000 or GEL 100,000, owns more than one property, acquired or sold property during the year, owns land, receives rental income or lives outside Georgia.

Professional review is also useful where the market value is uncertain, the previous year’s return may have been incorrect, the Revenue Service has issued an assessment or the property is part of a wider investment or relocation plan. The objective is to establish the correct liability before filing rather than correct it after penalties or interest begin to accrue.

Property Tax Services in Georgia from IBCCS TAX

IBCCS TAX Georgia supports individuals, investors, landlords, foreign owners and Georgian citizens living abroad with property-tax compliance. Our role can range from a one-off calculation to full preparation and submission of the annual property-tax return.

• Review of whether the GEL 40,000 family-income exemption applies.
• Calculation of family income for property-tax purposes, including Small Business Status and other special income categories.
• Confirmation of the applicable municipal property-tax rate.
• Review of market value and ownership period for taxable property.
• Assessment of land-tax obligations and local land rates.
• Preparation and submission of the annual property-tax return.
• Review of previous-year automatic assessments and amended-return requirements.
• Support for non-resident and foreign owners managing compliance from abroad.
• Coordination of rental-income and other related tax obligations.
• Communication with the Georgian Revenue Service where clarification, correction or representation is required.

 

Clients who require wider personal or investment tax support can combine property-tax compliance with our taxation services in Georgia and legal services in Georgia, particularly where property ownership, rental arrangements or cross-border matters need to be reviewed together.

Review the Position Before the November Deadlines

For most individual owners, Georgian property tax is manageable once the correct facts are identified. The core questions are whether the property is taxable, whether the GEL 40,000 family-income exemption applies, which municipal rate applies, what market value should be used and whether land needs a separate calculation.

The process becomes more complex when the owner lives abroad, has several family income sources, owns multiple properties or land, receives rental income or relies on a previous-year automatic assessment. Those cases should be reviewed before the November deadlines so that the filing reflects the actual ownership and income position.

IBCCS TAX Georgia can calculate the liability, prepare the return and manage the filing process for property owners in Georgia. Contact IBCCS TAX to discuss property tax, rental-income taxation, non-resident ownership or wider personal tax compliance.

FAQ: Property Tax in Georgia

1. Do individuals pay property tax in Georgia?

Yes, individuals can be subject to annual property tax on qualifying property in Georgia. For non-land taxable property, the GEL 40,000 family-income exemption and the relevant municipal rate are key parts of the calculation.

2. What is the GEL 40,000 property tax threshold in Georgia?

A natural person’s taxable property other than land is generally exempt where the relevant family income received during the previous calendar year does not exceed GEL 40,000. Land must be reviewed separately.

3. What is the property tax rate in Georgia?

For individuals whose non-land property is not exempt, the Tax Code sets a general rate range of 0.05%-0.2% for families with income below GEL 100,000 and 0.8%-1% for families with income of GEL 100,000 or more. The municipality determines the local rate within those limits.

4. What is the property tax rate in Tbilisi?

Under the current Tbilisi rules, the annual rate on taxable non-land property is 0.2% for families with income below GEL 100,000 and 0.8% for families with income of GEL 100,000 or more, subject to the GEL 40,000 exemption.

5. Is property tax based on the purchase price of an apartment?

Not necessarily. For an individual, taxable non-land property is generally assessed using market value at the end of the relevant tax year. The historical purchase price may not reflect the correct market value.

6. Does a foreigner pay property tax on an apartment in Georgia?

Foreign ownership does not automatically create an exemption. Property located in Georgia can remain within the Georgian property-tax system even where the owner lives abroad. The income test and filing position should be reviewed based on the owner’s specific circumstances.

7. Does a non-resident Georgian citizen use worldwide income for property tax?

The Tax Code contains a specific rule under which the income of a non-resident natural person who is a Georgian citizen is determined by Georgian-source income for this property-tax purpose.

8. Does rental income count toward the property tax income threshold?

Rental income can be relevant to the family-income calculation and can also create a separate income-tax obligation. The annual property tax and tax on rental income are separate issues.

9. Does Small Business Status affect the property tax income calculation?

Yes. For a person with Small Business Status, 25% of income taxable under the special regime is included in the property-tax family-income calculation, together with taxable income not covered by the special regime.

10. Is land exempt if family income is below GEL 40,000?

Not automatically. The GEL 40,000 exemption applies to taxable property other than land. Land has its own tax rules, rates and exemptions.

11. What is the property tax deadline in Georgia?

A natural person generally files the annual property-tax return no later than 1 November and pays the property tax and property tax on land no later than 15 November.

12. Do I need to file a property tax return every year?

Not always. Where the previous year’s return was filed or the Revenue Service assessed the tax and the relevant data is unchanged, the tax authority may automatically assess the current liability based on the previous information. Changes in property, value, income or land can require a new or amended return.

13. What should I do if I no longer have a property tax obligation?

If no liability arises, a return may not be required. However, if you were a property-tax declarant in the previous year, you may need to notify the Revenue Service by 1 November that you will not file for the current year.

14. Can IBCCS TAX file the property tax return for me?

Yes. IBCCS TAX Georgia can review the family-income threshold, calculate the liability, confirm the relevant rate, prepare the return and support filing and payment for residents, non-residents and foreign property owners.

Disclaimer: This article is for general information only and does not constitute tax, legal or financial advice. Professional advice should be obtained based on your specific circumstances.