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Tax Benefits of Atlanta Homeowners


Tax Benefits of Atlanta Homeowners

While there are plenty of benefits to living in Atlanta—the mild winters, our fantastic foodie scene, and the infamous BeltLine—there are many financial benefits as well. If you are a homeowner in the state of Georgia, you might be eligible for a multitude of benefits come tax season. 

So, let’s take a look:



Let's start by decoding the difference between standard and itemized deductions—two key players in lowering your income tax burden.

Normally, the IRS offers the standard deduction to all tax filers. Here’s what the breakdown looks like for 2023:

  • For single and married individuals filing taxes separately, the standard deduction is $5,400
  • For married couples filing jointly, the standard deduction is $7,100
  • For heads of households, the standard deduction is $5,400

With the standard deduction, you can reduce your taxable income by a standard amount. However, here's where homeowners can cash in. If you choose to itemize deductions—including those tailored for homeowners—you can pass on the standard deduction and tally up your individual deductions instead.

Just make sure that the sum of your itemized deductions is larger than the standard deduction. 



Okay, now that we’ve talked through the nitty-gritty, here are some itemized tax deductions that homeowners can claim:

Mortgage Interest

When it comes to paying interest on your mortgage, homeowners can deduct 100% of their payment for both a primary and secondary home. Although, there are some limitations. For loans established after 2017, there is a deduction limit of $750,000—for loans established before, there is a limit of $1 million.

Luckily, homeowners will receive a Mortgage Interest Statement Form 1098 from their lender that outlines the total annual home mortgage interest paid, making it much simpler to itemize this tax deduction.

Mortgage Insurance

Many people who purchase a home without putting 20% down are required to buy mortgage insurance as well. Luckily, your PMI premiums can be deducted from taxable income.

Real Estate Taxes

Known as the SALT deduction (State and Local Taxes), homeowners are able to deduct up to $10,000 in state and local taxes if filing jointly ($5,000 for single or separate). This includes property taxes and your choice of income or sales taxes.

Pro Tip: The state of Georgia has created the HTRG (Homeowner Tax Relief Grants) to alleviate the cost of homeownership for specific individuals. It is a one-time tax credit intended to reduce your 2023 tax bill as long as the homeowner is eligible. You can learn more about this program here.

Capital Gains Exclusion

Did you know that those who sell their Atlanta home don’t have to pay capital gains tax on their profit from the sale? With today’s current laws, people who have lived in their property for at least two years do not have to pay any taxes on the first $500,000 of their home sale profit. (For joint filers; the amount is halved for single or separate).

Home Equity Loans

This is a type of loan where homeowners can borrow from the equity of their own home. The loan amount is determined by the property value and must be used to buy, build, or make improvements to a home. These loans would make a great addition to your itemized list of tax deductions.

Homestead Exemptions

Specific to the state of Georgia, a homestead exemption is a great option for homeowners who occupy the home they own as of January 1st that taxable year. The amount deducted varies by the county, so make sure to look at the qualifications for your area here.


As tax season quickly approaches, make sure you are working with a proper professional who can steer you through the ins and outs of the IRS guidelines. If you’re feeling a bit lost, The LaMon team would be happy to provide a trusted source. From real estate transactions to local recommendations, we are here for you!

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