If you are buying or selling a luxury home in Fulton, DeKalb or Cobb with a closing date between September and December, the property tax line on your settlement statement deserves a careful read. Property tax proration at closing in Georgia divides one annual bill between two owners, and in fall 2026 that split lands in the middle of bill season. Fulton County mailed temporary bills on August 15, 2026, Cobb and DeKalb bills are out, and due dates fall in late September, October and November. Here is how the process works.
What does property tax proration at closing mean in Georgia?
Proration is how a closing attorney splits one year of property taxes between the seller and the buyer. Georgia's tax year runs January 1 through December 31, and each county issues a single bill covering the whole year. Because a sale happens partway through that year, each party is charged for the portion they owned the home, and the settlement statement shows the resulting credit.
Georgia Title and Escrow Company notes that taxes are assessed on a current-year basis, so a fall bill covers the entire calendar year. Under O.C.G.A. 48-5-10, returns are for property "held and subject to taxation on January 1."
The county does not do the split. The Cobb County Tax Commissioner's FAQ states that the office "does not prorate taxes or become involved in the proration of taxes between a seller and buyer."
Who pays for which days of the 2026 tax year?
In a typical Georgia closing, the seller is responsible for the days from January 1 through the closing date, and the buyer is responsible for the remainder of the year through December 31. The attorney converts the annual tax into a daily figure and applies it to each party's days of ownership. The purchase contract governs the details, so the exact treatment belongs with your Georgia real estate attorney.
Georgia Title and Escrow explains that the per-diem rate is the annual tax divided by 365 or 366 days. Since 2026 is a 365-day year, a closing in early November leaves the seller with roughly ten months of the year and the buyer with roughly two.
Who owes which days is separate from who pays the county. Cobb's FAQ says liability is established during the closing and that, generally speaking, the purchaser assumes this liability. Because taxes legally attach to the property, it adds, the current owner should make sure they are paid.
How does the closing attorney prorate when the 2026 bill is not out yet?
When the current year's bill has not been issued, the attorney usually estimates the year's taxes from the most recent bill available, which is the prior year's bill. The seller gives the buyer a credit for the seller's share of the year, and the buyer then pays the full bill when it arrives. The parties or the lender can instruct a different approach.
Martin Snow, LLP, a Georgia law firm, states that "the last year's tax bill is used unless otherwise instructed by the parties or the lender" for proration on the Closing Disclosure. Sherman and Phalen, a Georgia real estate closing firm, describes estimating taxes from the previous year's bill and dividing it proportionally between buyers and sellers.
The estimate matters most when values or rates change. A prior-year bill reflects prior-year assessments, exemptions and millage rates, so the actual bill can land higher or lower. On the Closing Disclosure, the Consumer Financial Protection Bureau labels this kind of credit "Adjustments for Items Unpaid by Seller," meaning taxes the buyer will pay in the future that the seller reimburses now.
What changes once the 2026 bill has been issued?
Once the current bill exists, the attorney can prorate from the actual 2026 figure instead of an estimate. How the credit flows then depends on payment status. If the seller already paid the bill, the buyer reimburses the seller for the rest of the year. If the bill is still open, the attorney typically pays it from closing funds and adjusts each party's share on the statement.
The bill was issued and the seller already paid it
Georgia Title and Escrow notes that when the seller has already paid, the buyer credits the seller for the buyer's share from the closing date through December 31. The CFPB Closing Disclosure explainer calls this category "Adjustments for Items Paid by Seller in Advance," costs the seller prepaid that the buyer now reimburses.
The bill was issued but is not yet paid
When a bill is issued but unpaid at closing, Georgia Title and Escrow explains that the closing attorney typically pays the full bill from closing funds, with proration adjustments between the parties.
When are 2026 property tax bills due in Fulton, DeKalb and Cobb?
As of September 2026, City of Atlanta taxes on Fulton County bills are due September 30, 2026, while Fulton County and Cobb County bills are due October 15, 2026. DeKalb County's Tax Commissioner lists a first installment due September 30 and a second installment due November 16. Fulton's 2026 bills are temporary, which adds a step for fall closings there.
Fulton County, including City of Atlanta
According to Fulton County's announcement of its 2026 temporary tax bills, bills were mailed August 15, 2026 and are "temporary bills based on valuations in the preliminary 2026 Tax Digest and each taxing jurisdiction's 2025 millage rate." A Superior Court judge approved temporary billing on August 4, 2026 after a delay in completing the digest. Interest accrues daily after the due date, with an additional 5% penalty on the 120th day and every 120 days after, up to 20%.
DeKalb County
The DeKalb County Tax Commissioner's website states that bills are in the mail, with installments due Sept. 30 and Nov. 16. The office notes that a bill is mailed to the new owner if a deed change occurred after the first of the year, and that failure to receive a bill does not relieve the responsibility of paying taxes due.
Cobb County
In its August 19, 2026 release on Cobb County property tax bills, the county reported 270,574 bills totaling $1,363,609,369, with payment due October 15, 2026.
These dates decide which scenario applies. A Fulton closing in early October may involve a City of Atlanta portion already due and a county portion still open.
What happens if the final bill differs from the figure used at closing?
If the tax figure used at closing differs from the final bill, a revised proration can be calculated after closing. Sherman and Phalen, a Georgia closing firm, notes that when taxes change dramatically its attorneys can help calculate a revised amount, and that the buyer and seller work together on any revised payments. Any obligation to re-prorate, and the method, comes from your purchase contract.
This is a live issue in Fulton, where 2026 bills were built on 2025 millage rates and a preliminary digest. The Center for Civic Innovation reported on September 6, 2026 that corrected Fulton bills are expected mid-November, after the Board of Assessors finished its remaining valuations on September 1. Fulton's August 10, 2026 release says that "if required, either a refund or a revised final tax bill will be issued." For a Fulton closing before mid-November, it is reasonable to ask your attorney how the settlement statement and contract address a later refund or revised bill.
How does the seller's homestead exemption affect the bill the buyer inherits?
A Georgia homestead exemption does not transfer to the buyer. Eligibility for a tax year depends on owning and occupying the home as of January 1, with applications due by April 1. A fall 2026 buyer did not own the home on January 1, 2026, so the 2026 bill reflects the property's January 1 status, and the buyer files separately for a later tax year.
Georgia.gov states that you must have owned the property as of January 1 and occupy it as your legal residence, and that most exemptions renew automatically "as long as you continually occupy the home under the same ownership." Georgia Title and Escrow puts it plainly: the exemption "does not transfer with the property."
If the seller held exemptions, the bill used for proration reflects them, and the buyer's bill in a later year may look different. Our overview of Georgia homestead and floating homestead exemption deadlines for high-value Atlanta homes covers the filing process. For sellers, Cobb's August 2026 release reminds owners receiving homestead exemptions they no longer qualify for to notify the Tax Commissioner's Office, since failing to report may result in penalties.
Does a sale change how the home is assessed next year?
A sale during 2026 does not change the 2026 bill, because Georgia taxes are assessed as of January 1 for the entire tax year. The next assessment reflects the property's status as of January 1, 2027. Where a floating homestead exemption applies, the capped base value resets when the property sells, and the new owner starts a new base year at current fair market value.
Cobb's Tax Commissioner states that "taxes are assessed as of January 1 for the entire tax year." Georgia Title and Escrow explains that under HB 581, the floating exemption's cap "resets when the property sells or transfers," and it notes that participation varies by jurisdiction.
For buyers whose taxes will be paid through a lender's escrow account, a change in the bill from one year to the next can also change the monthly payment. Our guide on why an Atlanta mortgage payment can rise after the 2026 tax bill explains escrow analysis and shortages.
What should buyers and sellers review before a fall closing?
Before a September to December closing, review the tax entry on the Closing Disclosure or settlement statement, confirm which bill year and amount were used, and ask how payment status was confirmed. Lenders must provide the Closing Disclosure three business days before closing, which gives both sides a short window to raise questions about the proration figures with the attorney.
- Bill year and amount. Is the figure from the 2026 bill or an estimate based on the 2025 bill?
- Payment status. Was the bill, or any installment, paid before closing, or will it be paid from closing funds?
- Revised bills. For Fulton properties, how is a later refund or revised bill addressed?
- Escrow setup. Buyers with a loan can confirm with the lender that taxes will be paid from escrow.
- Homestead timeline. Buyers who will occupy the home can note the April 1 filing deadline.
Broader costs such as lender charges, title fees and prepaids are covered in our breakdown of Atlanta buyer closing costs in 2026.
FAQ
I bought in the fall and the bill came with the prior owner's name. Does it still need to be paid? Yes. Taxes attach to the property, and DeKalb's Tax Commissioner states that failure to receive a bill does not relieve the responsibility of paying taxes due. Martin Snow notes it asks sellers to forward a bill they receive to the buyer. Your closing statement shows which party was responsible.
Can a buyer who closes in fall 2026 claim a homestead exemption on the 2026 bill? Georgia.gov ties eligibility to owning and occupying the home as of January 1 and filing by April 1. A fall 2026 buyer did not meet the January 1, 2026 requirement, so the buyer's application applies to a later tax year.
What if Fulton issues a revised bill or refund after my closing? Fulton County says a refund or revised bill will be issued only as needed once 2026 millage rates are set. How any difference is shared depends on your contract and settlement statement, so your Georgia real estate attorney is the right contact.
Is proration the same as a lender's escrow deposit? No. Proration splits the year's taxes between seller and buyer. An escrow deposit is money a lender collects from a borrower toward future tax and insurance bills. Both can appear on the same Closing Disclosure, and your lender can explain the escrow side.
Conclusion
Georgia property tax proration follows a consistent logic: one calendar-year bill, divided by days of ownership, with a credit to the party who covers the bill. What shifts in the fall is the status of that bill. In 2026, Fulton's temporary bills, the September 30 and October 15 due dates, DeKalb's November 16 second installment and Cobb's October 15 deadline all shape which figure appears on your settlement statement and who pays the county. Questions beyond process belong with your Georgia real estate attorney or a CPA or tax advisor. If you are planning a fall 2026 purchase or sale in Fulton, DeKalb or Cobb, contact The Agency Atlanta to talk through your timeline and the steps ahead of closing.
