Georgia homeowners who keep a homestead exemption on a house they no longer live in now face a 50 percent penalty on top of the back taxes. Senate Bill 566, which applies to taxable years beginning on or after January 1, 2026, created a new Code Section 48-5-51.1. If an owner does not report ineligibility for a homestead exemption by the final day to appeal the annual assessment notice, the property is billed for the taxes and interest due plus a penalty equal to 50 percent of the amount by which the taxes were reduced.
The change reaches every Houston County homeowner with a homestead exemption, from Warner Robins and Perry to Centerville, Bonaire and Kathleen. It matters most for three groups: owners who moved and kept the old house as a rental, families holding an inherited home, and buyers, because the Georgia Department of Revenue says the tax obligation and the 50 percent penalty accompany the property, not the taxpayer.
Assessment notices are now required to list every exemption on a property, show the estimated tax savings, and state in bold that the owner is required by law to report ineligibility. The window to act is the 45 day appeal period that follows the notice.
What does SB 566 change about homestead exemptions in Georgia?
Before 2026, Georgia law already required homestead exemptions to follow the owner's actual residence. SB 566 adds a deadline, a disclosure on every assessment notice, and a financial consequence for missing the deadline. Under amended O.C.G.A. 48-5-45(b), a person granted the exemption who becomes ineligible must notify the tax receiver or tax commissioner on or before the final date to file an appeal of the annual notice of current assessment.
If that does not happen, new O.C.G.A. 48-5-51.1 directs that the property be billed for all taxes and interest due, plus a penalty of 50 percent of the amount by which the taxes were reduced. The taxpayer must be notified in writing at the last known address. The bill text does not set a separate interest rate or a lookback limit, so the practical reach of the penalty will depend on how local tax officials apply it.
SB 566 at a glance
Rule | What the law says | Code section |
Who must report | Any person granted the exemption who becomes ineligible | 48-5-45(b) |
Deadline to report | Final date to appeal the annual assessment notice (45 days after the notice date) | 48-5-45(b), 48-5-306 |
Penalty | Taxes and interest due, plus 50 percent of the amount taxes were reduced | 48-5-51.1 |
Notice timing | Annual assessment notice mailed no later than July 1 | 48-5-306(b)(3) |
Notice content | Each exemption, credit and preferential assessment, plus estimated tax savings and a bold reporting statement | 48-5-306(b) |
State registry | Local officials submit granted and denied homestead lists to the Department of Revenue and review the list before approving | 48-5-57 |
Applies to | Taxable years beginning on or after January 1, 2026 | SB 566, Section 9 |
The table shows why 2026 is different for Houston County owners. The assessment notice now does the reminding, the 45 day appeal window sets the clock, and the statewide registry gives assessors a way to spot the same owner claiming a homestead in two places. An owner in Warner Robins who bought a new home in Perry, or moved to another county, and never removed the exemption on the first house is exactly the record the registry is designed to surface.
Who has to remove a homestead exemption in Houston County?
Georgia's homestead exemption is for a home the owner owns and actually occupies as a residence as of January 1 of the tax year, according to the Georgia Department of Revenue. Georgia county assessor offices, such as Upson County's, state that once granted, a homestead exemption is automatically renewed each year, which is why it is easy to forget about after a move.
Situations that commonly create ineligibility include:
• Moving into a new primary residence and keeping the old house as a rental. The Department of Revenue states that rental property does not qualify for the Homeowner Tax Relief Grant, and the homestead exemption itself requires owner occupancy.
• Holding an inherited house where no qualifying owner lives in it as a residence.
• Claiming a homestead on a new home in another Georgia county while the old Houston County exemption is still on the books.
• Losing eligibility for an income or age based exemption, such as the Houston County senior exemption, which the county asks owners to report.
Timing matters. Homestead status is determined as of January 1. A Georgia Attorney General opinion annotated in the Code holds that an owner who occupied the home on January 1 may keep the exemption for that year even after moving out later in the year. The reporting duty attaches to the next assessment cycle.
Two absences are protected. Under O.C.G.A. 48-5-40(3)(J), absence because of duty in the armed forces is not a waiver of the exemption, and under 48-5-40(3)(N), absence for health reasons is not, in and of itself, a waiver. For families tied to Robins Air Force Base on orders, a deployment or temporary assignment is not the same as moving out.
Does the homestead penalty follow the house when it sells?
Yes, according to the Georgia Department of Revenue. Its May 2026 legislative update slide on SB 566 states that the tax obligation and the 50 percent penalty accompany the property, not the taxpayer.
For buyers in Bonaire, Kathleen, Centerville or anywhere in Houston County, that makes the seller's exemption history part of due diligence. For sellers, it means an old exemption that should have been removed can surface at the worst possible time, during a contract.
A related change sits in SB 33, the 2026 HOME Act. Its text provides that a tax officer may not retroactively assess a taxpayer for an improperly or mistakenly applied homestead exemption when the error is not due to intentional misrepresentation or fraud by the taxpayer. The guidance reviewed for this article does not explain how that limit and the SB 566 penalty interact, so owners with an older exemption problem should ask the Tax Assessor and a tax professional directly.
How do you remove or report a homestead exemption in Houston County, GA?
SB 566 requires notice to the tax receiver or tax commissioner. In Houston County, exemptions are handled through the Houston County Tax Assessor's Office at 201 Perry Parkway in Perry, and the county's exemption page asks owners to notify the office when they no longer meet eligibility requirements. Put the request in writing, keep a copy, and confirm the change on the next assessment notice.
Read the notice when it arrives. Under SB 566 it must list each exemption on the property and the estimated tax savings. If an exemption is listed that no longer fits, the report needs to be made within the 45 day appeal window printed on the notice.
The same window now works in the owner's favor for new filings. SB 566 lets homestead applications be filed through the final date to appeal the assessment notice. The Houston County exemption page still lists a January 1 to April 1 filing period with in person filing only, so confirm the current deadline with the Tax Assessor before relying on the later date.
Should I check my homestead exemption before selling my house in Houston County?
Yes. Under SB 566, unreported homestead ineligibility can lead to back taxes, interest and a 50 percent penalty that the Georgia Department of Revenue says stays with the property.
When I prepare a listing in Warner Robins, Perry or Kathleen, I ask every seller one question early: does the exemption on this house still match how the house is being used? If you moved to a new home and rented this one, or you are selling a parent's house, I want that cleaned up with the Tax Assessor before a buyer's attorney finds it. It is a small conversation that keeps a closing on schedule.
If you are selling a home you lived in on January 1, you are generally fine for that year. The issue is a house that has not been your residence for a full cycle while the exemption kept renewing.
Can I get stuck with the previous owner's homestead penalty when I buy a house in Georgia?
The Georgia Department of Revenue states that the tax obligation and the 50 percent penalty under SB 566 accompany the property, not the taxpayer, so a buyer should confirm the exemption history before closing.
On every purchase I work in Houston County, I look at the exemptions on the parcel and compare that with how the seller has been using the home. A rental showing a homestead exemption is a question for the closing attorney before you sign, not after.
After closing, file your own homestead exemption in person at the Houston County Tax Assessor's Office. It is your exemption to claim, and the seller's exemption does not carry over to you.
Frequently Asked Questions
What is the homestead exemption penalty in Georgia?
Under O.C.G.A. 48-5-51.1, created by SB 566 in 2026, a property is billed for all taxes and interest due plus a penalty of 50 percent of the amount by which taxes were reduced when the owner fails to report homestead ineligibility on time. The rule applies to taxable years beginning on or after January 1, 2026. It applies statewide, including Houston County, Warner Robins and Perry.
When do I have to report that I am no longer eligible for a homestead exemption in Georgia?
The deadline is the final date to file an appeal of the annual assessment notice. That date is 45 days after the date of the notice. Houston County owners should check the date printed on their notice each year.
Does the homestead penalty follow the property or the owner?
The Georgia Department of Revenue states that the tax obligation and the 50 percent penalty accompany the property, not the taxpayer. Buyers in Houston County should confirm exemption history before closing. Questions about exemptions on a specific Houston County parcel can go to the Houston County Tax Assessor's Office.
Can I keep my homestead exemption if I rent out my house in Warner Robins?
A Georgia homestead exemption requires that the owner actually occupy the home as a residence as of January 1. A house used as a rental with no owner living there does not meet that requirement. The Department of Revenue also states that rental property does not qualify for the Homeowner Tax Relief Grant.
Does military deployment cancel a Georgia homestead exemption?
No. O.C.G.A. 48-5-40(3)(J) states that absence from a residence because of duty in the armed forces is not a waiver of the homestead exemption. A family member, friend or the service member may notify the tax receiver or tax commissioner of the absence.
What if I move out after January 1?
Georgia homestead status is determined as of January 1 of the tax year. A Georgia Attorney General opinion annotated in the Code holds that an owner who occupied the home on January 1 may keep the exemption for that year even after moving out later. The exemption should be reported for the following year's assessment cycle.
Where do I remove a homestead exemption in Houston County, GA?
Homestead exemptions in Houston County are handled by the Houston County Tax Assessor's Office at 201 Perry Parkway in Perry. The county asks owners to notify the office when they no longer meet eligibility requirements. Written notice with a kept copy creates a record of the date.
What will my Georgia assessment notice show about exemptions?
Under SB 566, the annual assessment notice must list each exemption, credit and preferential assessment on the property. It must show the estimated tax savings and include a bold statement that the owner is required by law to report ineligibility. The notice must be mailed no later than July 1.
Is there a statewide homestead registry in Georgia?
SB 566 created O.C.G.A. 48-5-57, which requires local tax officials to submit lists of granted and denied homestead exemptions to the Department of Revenue each year with the county digest. Officials must review the list before approving a homestead exemption. The Department of Revenue describes the registry as searchable.
Does an inherited house in Houston County keep the homestead exemption?
A Georgia homestead exemption depends on an owner occupying the home as a residence on January 1. If no qualifying owner lives in an inherited house, the exemption generally no longer fits the property. Heirs should contact the Houston County Tax Assessor's Office to confirm the status before the next appeal deadline.
How long is the Houston County homestead filing period?
The Houston County Tax Assessor's exemption page lists a January 1 to April 1 filing period with in person filing at 201 Perry Parkway. SB 566 allows applications through the final date to appeal the assessment notice. Owners should confirm the current deadline with the Tax Assessor's Office.
About the Author
William Walton-Dean is a licensed REALTOR® with Walton Dean Realty, operating under Real Broker LLC, serving buyers and sellers across Houston County, Georgia, including Perry, Warner Robins, Bonaire, Kathleen, Byron, and the surrounding Middle Georgia housing market. He brings a data-driven, hyper-local approach to both residential and commercial transactions, working with first-time buyers, move-up sellers, investors, and families relocating to the area, including those tied to Robins Air Force Base. Drawing on a prior career as a C-level executive, he helps buyers and sellers at every price point make clear, confident decisions backed by real market insight.
📱 478-371-7069
Walton Dean Realty | Real Broker LLC
Buying or Selling in Houston County? Let's Talk Before the Tax Records Do
If you are selling a former residence, an inherited home or a rental in Warner Robins, Perry, Bonaire, Kathleen or Centerville, I can help you spot exemption issues before they reach the closing table. Call or text me at 478-371-7069 to talk through your situation.
William Walton-Dean | Walton Dean Realty
📱 478-371-7069
A More Strategic Approach to Real Estate
Disclaimer: This article is for general information only and is not tax or legal advice. Confirm your situation with the Houston County Tax Assessor, the Houston County Tax Commissioner or a qualified tax professional.
