Inheriting Property in Georgia: Taxes, Laws & Options
Inheriting property in Georgia involves navigating unique state laws like the Year's Support provision, which can offer significant financial relief to surviving families. While Georgia does not impose a state-level inheritance or estate tax, recent legislative changes have expanded your options for avoiding probate through the introduction of Transfer-on-Death deeds.
Educational Information Only: EstateSalen provides general educational information about probate, estate sales, cleanouts, downsizing, inherited property, and real estate transition services. EstateSalen is not a law firm and does not provide legal, tax, financial, or real estate brokerage advice. Always confirm requirements with the appropriate court, licensed attorney, tax professional, financial advisor, or licensed real estate professional.
Georgia-Specific Quick Facts
These facts are specific to Georgia and may differ from the general process described below. Always verify with your local court.
Last verified: 6/30/2026
Georgia Inheriting a property — whether a family home, investment property, or land — comes with legal, financial, and emotional decisions. This guide walks you through the process of handling an inherited property, from securing it and understanding title issues to choosing whether to sell, keep, or rent it.
While the federal framework for inherited property is consistent nationwide, important details — property tax reassessment rules, state estate and inheritance taxes, and probate requirements — vary by state. This guide covers the general process and highlights state-specific differences.
How It Works in Georgia
Georgia Property Tax Rules After Inheritance
In Georgia, property is typically assessed annually at 40% of its fair market value. Unlike some states, Georgia does not have an automatic 'trigger' reassessment specifically for inheritance. However, the property tax bill can still increase significantly. If the deceased owner benefited from a 'floating' homestead exemption or a local assessment freeze—common in many Georgia counties—that protection expires upon their death. Heirs who plan to live in the home must apply for their own homestead exemption by April 1st of the year following the transfer to avoid paying taxes on the full current market value.
The Unique 'Year's Support' Provision
Georgia is the only state in the country that offers a legal mechanism known as Year's Support (O.C.G.A. § 53-3-1). This allows a surviving spouse or minor children to petition the probate court to set aside a portion of the estate—often the family home—to support them for 12 months. A major benefit of this provision is that it can effectively waive one year of property taxes (either for the year of death or the year the petition is filed). Additionally, Year's Support claims take priority over most other debts of the estate, including medical bills and credit card debt, protecting the property from creditors.
Transfer-on-Death (TOD) Deeds in Georgia
Historically, Georgia did not recognize Transfer-on-Death deeds. However, as of July 1, 2024 (O.C.G.A. § 44-17-1), Georgia residents can now use TOD deeds to name a 'designated grantee beneficiary.' This allows the property to transfer automatically to the heir upon the owner's death without going through the probate process. Heirs should note that the beneficiary must file an affidavit with the county clerk within nine months of the owner's death to finalize the transfer; failure to do so may require the property to go through probate anyway.
State Estate and Inheritance Taxes
Georgia repealed its state estate tax in 2014 and does not have an inheritance tax. Heirs will generally only deal with federal estate tax thresholds, which as of 2026 are approximately $15 million per individual (confirm current federal figures with an attorney). This makes Georgia a highly favorable state for inheriting large real estate holdings, as the state itself does not take a percentage of the value.
Stepped-Up Basis and Capital Gains
Georgia follows federal tax law regarding the stepped-up basis. When you inherit real estate, your 'cost basis' for tax purposes is reset to the fair market value at the time of the owner’s death. If you sell the property shortly after inheriting it, you may owe little to no capital gains tax, as you are only taxed on the appreciation that occurs after you take ownership. Confirm the exact valuation with a professional appraisal or your local tax assessor.
Inheriting a Property: First Steps
Inheriting a home or real estate brings both emotional and practical challenges. Whether you've inherited a house from a parent, grandparent, or other relative, understanding your options and obligations will help you make informed decisions during a difficult time.
The first priority is securing the property — changing locks, maintaining insurance, and ensuring the home is safe. Then you'll need to determine how the property was titled, whether it needs to go through probate, and what your options are for keeping, selling, or renting it.
How Title Affects What Happens Next
How the deceased held title to the property determines whether probate is needed and how the transfer occurs:
- •Sole ownership: The property typically goes through probate. The executor transfers it to the beneficiary named in the will (or per state intestacy law).
- •Joint tenancy with rights of survivorship: The surviving owner automatically inherits the deceased's share. A death certificate and simple recording usually complete the transfer — no probate needed.
- •Tenancy by the entirety: Available to married couples in some states. The surviving spouse automatically inherits.
- •Living trust: If the property was transferred to a trust during the owner's lifetime, the successor trustee manages and transfers it according to the trust terms — no probate needed.
- •Transfer-on-death (TOD) deed: Available in some states, this allows the owner to name a beneficiary who inherits the property directly upon death, bypassing probate.
Your Options for an Inherited Property
Once you've determined that you're inheriting the property, you generally have four options:
- •Move in: You can take possession and make the home your primary residence. Consider property tax implications — some states reassess inherited property, significantly changing the tax basis.
- •Sell the property: You can list and sell the home, splitting proceeds with co-heirs if applicable. This is the most common choice when multiple beneficiaries are involved or when no one wants to live in the home.
- •Rent it out: You can become a landlord, generating rental income while retaining the property. This requires ongoing management and carries tenant-related responsibilities.
- •Buy out co-heirs: If multiple people inherited the property, one heir can buy out the others' shares to become the sole owner.
Taxes on Inherited Property
Understanding the tax implications of inheriting a property is critical:
- •Stepped-up basis: When you inherit property, the tax basis is generally "stepped up" to the fair market value at the date of death. This means if you sell the property soon after inheriting, you may owe little or no capital gains tax.
- •Estate tax: The federal estate tax exemption is high, so most estates owe no federal estate tax. Some states have their own estate or inheritance taxes with different thresholds.
- •Property tax reassessment: Some states reassess property values on transfer, which can significantly increase property taxes. Other states offer exemptions or protections for inherited primary residences or transfers between family members.
- •Capital gains tax: If you hold the property and it appreciates before you sell, you may owe capital gains tax on the appreciation since the date of death.
Tax rules vary significantly by state. Consult a tax professional or estate attorney to understand the specific implications for your situation.
Dealing with the Contents of an Inherited Home
An inherited home often comes with decades of accumulated belongings — furniture, collectibles, paperwork, household goods, and sentimental items. Sorting through these contents is often the most time-consuming part of settling an estate.
A practical approach:
- •Remove important documents, valuables, and sentimental items first
- •Sort remaining items into categories: keep, sell, donate, discard
- •Consider a professional estate sale for items with resale value
- •Arrange for donations of unsold usable items
- •Schedule a cleanout service for remaining items and debris
An estate sale company can handle the entire process — inventory, pricing, staging, sale execution, and cleanout — which is especially valuable when you live far from the inherited property or when the volume of contents is overwhelming.
Inheriting Property with a Mortgage
If the inherited property has a mortgage, the loan does not automatically disappear. Under federal law (the Garn-St. Germain Act), heirs generally have the right to assume the mortgage and keep making payments, or to sell the property and pay off the loan from the proceeds.
Key considerations:
- •Notify the lender of the owner's death as soon as possible
- •Continue making mortgage payments to avoid default
- •You can typically sell the property without paying off the mortgage first — the loan is paid from sale proceeds at closing
- •If you want to keep the property and refinance, you'll need to qualify for a new loan in your name
- •Reverse mortgages have different rules — the loan typically becomes due when the borrower dies
Official Georgia Resources
Always confirm current forms and fees directly with the court or agency.
Frequently Asked Questions
Georgia-Specific Questions
Does Georgia have an inheritance tax on real estate?
No, Georgia does not have a state inheritance or estate tax. Heirs are not required to pay state-level taxes on the value of the property they receive.
What is the deadline for applying for a homestead exemption after inheriting a home in Georgia?
To receive the exemption for the current tax year, you must own the property as of January 1st and file your application with the county tax commissioner by April 1st.
How does 'Year's Support' help with property taxes?
Under Georgia law, if a surviving spouse or minor child is granted Year's Support, they can often waive property taxes on the inherited home for one year, providing immediate financial relief during probate.
General Questions
Do I pay taxes on an inherited house?
You generally do not pay income tax on the inheritance itself. However, you may face capital gains tax if you sell the property for more than its stepped-up basis (fair market value at date of death). Some states also have estate or inheritance taxes. Property taxes may be reassessed upon transfer.
Can I sell an inherited house without going through probate?
If the property was held in a trust, owned jointly, or had a transfer-on-death deed, you may be able to sell without probate. If the property was solely owned by the deceased, it typically must go through probate before it can be sold, unless your state's small estate procedure applies.
What is a "stepped-up basis" and why does it matter?
When you inherit property, your tax basis is generally reset to the property's fair market value at the date of death. This means if you sell shortly after inheriting, you likely owe little or no capital gains tax, even if the property appreciated significantly during the original owner's lifetime.
What if multiple siblings inherit a house?
Co-heirs must agree on what to do with the property. Options include selling and splitting proceeds, one sibling buying out the others, or renting it out jointly. If siblings disagree, any co-owner can file a "partition" lawsuit to force a sale, though this is a last resort.
Do I need to pay the mortgage on an inherited house?
Yes. The mortgage must continue to be paid to avoid default and foreclosure. Under federal law, you can typically assume the existing loan or sell the property and pay off the mortgage from the proceeds.
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