Cost Segregation in Georgia

The #1 state for business relocation, Georgia pairs Atlanta's explosive Fortune 500 growth engine with a recently flattened 5.49% income tax and full IRC conformity for bonus depreciation — meaning both federal and state cost segregation benefits hit your pocket in Year 1.

Population
11.0M
Median Home
$340K
Property Tax
0.87%
23rd lowest in U.S.
State Income Tax
5.49%
Flat (recently changed from progressive)
Bonus Depreciation
Full
State Conformity
Avg. Insurance
$2,000
13% below average (statewide) / above average on coast
Tax Strategy

Cost Segregation & Tax Rules in Georgia

Understanding how federal and Georgia state tax rules interact is critical to maximizing your cost segregation benefits.

Cost Seg Overview
State vs. Federal Rules
Tax Landscape
Median Home Price
$340K
Building Value
78%
of purchase price
Cost Seg Range
25-40%
of building reclassified
Median Home Age
28 yrs
Built ~1996
What Gets Reclassified

A cost segregation study identifies building components that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 or 39 years. In Georgia, typical reclassification rates are 25-40% of building value.

Common Property Types
Single-Family DetachedTownhomesSmall Multi-Family (2-4 units)Ranch-Style Homes
Georgia's property values offer a sweet spot — high enough to generate meaningful tax savings, affordable enough to keep study cost ROI exceptional. Atlanta metro properties in the $350-500K range deliver the strongest absolute returns.
Overline Study Cost & ROI
Overline Study Cost
$499 - $2,000
Avg. ROI
10-40x

The math: A $340K property with 78% building value and 30% reclassification yields ~$29K in Year 1 federal tax savings at the 37% bracket — significantly more ROI than traditional studies costing $5,000-$10,000+.

Housing Stock Advantage

With a median build year of 1996, Georgia's housing stock has identifiable components (HVAC, electrical, plumbing, landscaping) that are strong candidates for accelerated depreciation.

Full Conformity
Georgia Bonus Depreciation Conformity

Georgia conforms to federal bonus depreciation under Section 168(k), enabling 100% first-year deductions on both federal and state returns. As GA transitions to a flat 5.49% income tax, cost seg studies deliver substantial combined savings — particularly for investors in Atlanta's high-growth corridors.

What This Means for Your Investment: Full conformity means cost seg benefits are maximized in Georgia. Federal AND state deductions apply in Year 1. The 5.49% flat rate provides meaningful state savings on top of federal benefits — and both hit your pocket immediately.

Federal vs. GA Depreciation Timeline
PeriodFederal TreatmentGA State Treatment
Year 1100% bonus depreciation100% bonus depreciation (full conformity)
Years 2+Standard MACRS schedulesSame as federal
Section 179 Expensing
State ConformityConforms

GA conforms to federal Section 179 expensing limits. For Atlanta's growing multifamily market, Section 179 can capture additional deductions on qualifying fixtures and equipment beyond what cost segregation covers.

Key Takeaway

A $370K property with a $289K depreciable basis and 30% cost seg reclassification yields ~$32,035 in federal tax savings PLUS ~$4,753 in GA state tax savings in Year 1 — a total of ~$36,788.

Bottom Line

Georgia is a full-conformity state. Every dollar of federal bonus depreciation flows through to your GA state return with no addback or modification. The 5.49% state rate adds a substantial, immediate state-level benefit to your federal savings.

Eff. Property Tax
0.87%
23rd lowest in U.S.
Transfer Tax
$1 per $1,000 of sale price (0.1%)
State Income Tax
5.49%
Flat (recently changed from progressive)
Property Tax Details

Property taxes vary by county. Fulton County (Atlanta) averages ~1.05%, while suburban counties like Gwinnett and Cobb average ~0.90%. Georgia's homestead exemption can reduce tax bills for owner-occupied properties.

Assessment Methodology
MethodFair market value at 40% assessment ratio
Reassessment CycleAnnually
Assessment BodyCounty Board of Tax Assessors
Appeal WindowWithin 45 days of assessment notice
Appeal Success Likelihood
Good
LowModerateGoodVery High

Georgia's 40% assessment ratio means a $300K property is assessed at $120K. Annual reassessments in fast-growing counties (Fulton, Gwinnett, Cobb) frequently over-assess, creating strong appeal opportunities. The Board of Equalization provides a free first-level appeal.

Work with Overline — Our team helps Georgia investors identify over-assessed properties and file tax appeals. A successful appeal can save thousands annually and compounds your cost seg savings.

Illustrative Example

Cost Seg Example for Georgia

This example assumes a purchase eligible for 100% bonus depreciation. All factors below are based on averages from our historical cost segregation studies for GA properties. To see your exact savings, run a property-specific cost seg analysis below.

Typical Georgia Property Details
$
50%95%
5%35%
2%25%
Total Reclassified30% of building
10%37%
Estimated Year 1 Tax Savings
Building Value$288,600
$370,000 x 78%
Normal Annual Depreciation$10,495
$288,600 ÷ 27.5 yr (residential)
5-Year Reclassified$51,948
15-Year Reclassified$34,632
Total Accelerated$86,580
30% of $288,600 building value
Federal Tax Savings (Year 1)$32,035
$86,580 x 37% bracket
Total Year 1 Tax Savings$32,035
8.3x normal annual deduction captured in Year 1

GA State Tax: GA has full bonus depreciation conformity — your state tax savings also apply in Year 1.

Depreciable Basis

Land vs. Building Value in Georgia

The land-to-building ratio directly impacts your cost segregation benefit — only the building portion is depreciable. Here is how Georgia breaks down by region.

Statewide Average
Building (Depreciable)78%
Land (Non-Depreciable)22%
78%
Depreciable Basis
Breakdown by Region
Atlanta (Intown/ITP)
70% Building

Inside the Perimeter land values are elevated. Older Midtown/Buckhead homes still offer good cost seg potential.

Atlanta (OTP/Suburban)
80% Building

Outside the Perimeter suburbs like Gwinnett, Cobb, and Henry offer strong building ratios with growing demand.

Savannah / Coastal
72% Building

Historic district and coastal premium inflates land values. Inland Savannah has better ratios.

Augusta / Macon
85% Building

Very affordable with excellent building-to-value ratios and military/government demand.

Rural Georgia
88% Building

Lowest land costs in the state. Best cost seg ratios but limited rental markets.

Investor Takeaway

Atlanta's suburban ring (OTP) offers the best combination of rental demand and cost seg efficiency at 80% building values. Savannah investors should target inland areas for better depreciable basis. Augusta offers exceptional ratios for military housing investors.

Insurance & Risk

Insurance Landscape in Georgia

Insurance costs directly impact your cash flow. Understanding Georgia's risk profile helps you budget accurately and avoid coverage gaps.

Avg. Annual Premium
$2,000
13% below average (statewide) / above average on coast
National Average
$2,300
for comparison
Premium Trend
Rising 7-10% annually, driven by severe storm and hurricane claims
Primary Risk Drivers
1
Hurricanes & Tropical Storms
Coastal Georgia faces hurricane risk. Savannah area is most exposed. Hurricane Matthew (2016) and Irma (2017) caused billions in damage.
2
Severe Thunderstorms & Tornadoes
Metro Atlanta and central Georgia experience frequent severe storms. Tornado activity is above the national average.
3
Hail Damage
Hail from severe thunderstorms is a major claims driver across northern Georgia, especially in the Atlanta metro.
Coverage Recommendations
Standard homeowner's policy with replacement cost coverage
Flood insurance recommended in Savannah coastal areas and low-lying Atlanta zones
Wind/hail deductible awareness (typically 1-2% of dwelling coverage)
Umbrella liability ($1M+) for rental property portfolios
Cost Seg + Insurance Connection

A cost segregation study documents building components and their values in detail — this supports accurate insurance replacement cost estimates. Georgia investors who complete a cost seg study are better positioned to negotiate premiums and substantiate claims after storm events.

Market Fundamentals

Economy & Housing Demand in Georgia

Strong economic engines create stable rental demand. Here is what drives Georgia's economy and housing market.

State GDP
$730B
Growing 3.2%/year
Unemployment
3.2%
Below national average
Median Income
$66,000
+17.5% over 5 years
Pop. Growth (1Y)
+1.2%
+100,000/year net migration
Major Industries
Film & Entertainment8%
Georgia is Hollywood of the South. Marvel, Netflix, and Tyler Perry Studios produce content statewide. $4B+ annual industry.
Technology15%
Atlanta is a major tech hub with NCR (now Voyix), Mailchimp (Intuit), and a thriving startup ecosystem. Georgia Tech pipeline.
Logistics & Transportation14%
Hartsfield-Jackson is the world's busiest airport. Delta Air Lines HQ, UPS, and massive warehouse/distribution operations.
Healthcare12%
Emory Healthcare, Piedmont Healthcare, and WellStar Health are major employers across metro Atlanta.
Military & Defense9%
Fort Eisenhower (Augusta), Robins AFB (Warner Robins), Fort Stewart (Hinesville). $30B+ annual military spending.
Key Economic Engines
Hartsfield-Jackson Airport: World's busiest, 63,000+ employees, $82B annual economic impact
Film industry: $4B+ annual production spending — Georgia is #1 filming destination globally
Port of Savannah: #3 U.S. container port, $140B annual trade, expanding capacity
Georgia Tech: Pipeline of 40K+ students feeding tech, engineering, and startup ecosystems
Housing Demand Signals
5-Year Pop. Growth
+6.5%
Housing Permits YoY
+7.8%
Median Days on Market
30 days
Months of Inventory
2.2
Migration: Corporate relocations to Atlanta (NCR, Microsoft, Google offices), film industry growth, lower taxes vs. Northeast/California, and strong job market attract diverse in-migration.
Construction: Wood frame with brick veneer, Vinyl or HardiePlank siding, Slab-on-grade foundation, Newer suburban construction
Landlord & STR Rules
Landlord Friendliness
Very Friendly
Eviction Timeline
30-45 days
Rent Control
Prohibited statewide
STR Regulation
Minimal

Georgia has no state-level STR ban or licensing. Atlanta requires STR registration and collection of hotel/motel tax. Savannah has specific STR zoning districts. Most suburban areas are permissive.

Local Markets

Top Cities for Investors in Georgia

Explore city-level cost segregation data, sample deals, and investment fundamentals for each major market in Georgia.

Atlanta, GA
#1 Business Relocation
Median Home
$400K
Rent (3BR)
$2,200
Property Tax
1.05%
Avg. Insurance
$2,100/yr
Est. Year 1 Tax Savings$39K+
View Atlanta Details
Savannah, GA
Port + Tourism
Median Home
$320K
Rent (3BR)
$1,900
Property Tax
0.92%
Avg. Insurance
$2,300/yr
Est. Year 1 Tax Savings$31K+
View Savannah Details
Local Partners

Investor-Friendly Partners in Georgia

We are building a curated directory of top investor-friendly brokers, property management companies, and service providers in Georgia.

Investor-Friendly Brokers

Top real estate agents who specialize in investment properties and understand cost segregation, 1031 exchanges, and cash-flow analysis.

Coming Soon
Property Management

Vetted property managers who handle tenant screening, maintenance, and rent collection for both long-term and short-term rentals.

Coming Soon
Insurance Agents

Independent insurance agents who specialize in rental property coverage and can leverage cost seg data for accurate replacement cost estimates.

Coming Soon

Are you a broker, property manager, or insurance agent serving investors in Georgia?

Partner With Overline
Frequently Asked Questions

Cost Segregation FAQ — Georgia

Does Georgia conform to federal bonus depreciation?

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Georgia conforms to federal bonus depreciation under Section 168(k), enabling 100% first-year deductions on both federal and state returns. As GA transitions to a flat 5.49% income tax, cost seg studies deliver substantial combined savings — particularly for investors in Atlanta's high-growth corridors.

What is the property tax rate in Georgia?

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The effective property tax rate in Georgia is 0.87%, ranked 23rd lowest in U.S. in the U.S. Property taxes vary by county. Fulton County (Atlanta) averages ~1.05%, while suburban counties like Gwinnett and Cobb average ~0.90%. Georgia's homestead exemption can reduce tax bills for owner-occupied properties.

How much can I save with cost segregation in Georgia?

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A $370K property with a $289K depreciable basis and 30% cost seg reclassification yields ~$32,035 in federal tax savings PLUS ~$4,753 in GA state tax savings in Year 1 — a total of ~$36,788.

What are the typical cost segregation reclassification rates in Georgia?

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In Georgia, typical cost segregation studies reclassify 25-40% of building value into accelerated depreciation categories (5-year, 7-year, and 15-year property). Overline studies cost $499-$2,000 with 10-40x ROI.

What is the average insurance cost for rental properties in Georgia?

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The average annual homeowner insurance premium in Georgia is $2,000, which is 13% below average (statewide) / above average on coast the national average of $2,300. Key risk drivers include Hurricanes & Tropical Storms and Severe Thunderstorms & Tornadoes.

What is the state income tax rate in Georgia?

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Georgia has a state income tax rate of 5.49% (Flat (recently changed from progressive)). Georgia transitioned from a progressive tax (1%-5.75%) to a flat 5.49% rate in 2024. Further reductions are planned toward 4.99%. Full bonus depreciation conformity means the state tax savings are immediate and significant.

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