The basis for ad valorem taxation is the fair market value of the property as determined by the Tax Assessor’s Office.
(Property Value x Assessment Rate) - Exemptions) x Property Tax Millage Rate = Tax Bill
Here is an example calculation for a home with a market value of $100,000 in the City of Savannah:
- The property value is the full market value appraised by the Assessors. All property in Georgia is taxed at an assessment rate of 40% of its full market value.
- Exemptions, such as a homestead exemption, reduce the taxable value of your property. Let's say this homeowner has a standard homestead exemption of $2,000.
- $40,000 - $2,000 = $38,000
- The taxable value is then multiplied by the millage rate. 1 mill = $1 tax per $1,000 taxable value. The City of Savannah’s 2019 millage rate is 12.856, which means property owners pay $12.856 per $1,000 of taxable value.
- $38,000 x (12.856/1,000) = $488.53 final City tax bill amount* Or $38,000 x .012856=$488.53*
*Please note: locally, the School Board and Chatham County set and assess property taxes separately and in addition to the tax rate set and collected by the City of Savannah. Chatham county residents who reside within Savannah’s city limits are required to pay both County and City property taxes per Georgia law. Property owners in the County and City pay School Board taxes. School Board taxes are collected by the Chatham County Tax Commissioner.