In its first reading, the Parliament of Georgia has backed an initiative to repeal the property tax threshold for annual incomes of 40,000 lari (around $15,000). The bill amending the Tax Code, drafted by lawmakers from the ruling Georgian Dream faction, was approved unanimously with 82 votes.
The issue is being considered by parliament under an expedited procedure: the amendments to the code will be put to a vote in the second and third readings during a plenary session on September 30. The document will take effect immediately upon official publication.
Under the planned changes to tax legislation, the 40,000 lari property tax threshold is abolished, establishing a single income threshold of 100,000 lari. Consequently, individuals with an annual income between 40,000 and 100,000 lari will be fully exempt from the obligation to pay property tax.
According to Georgian Dream, the measure will affect about 81,000 taxpayers, whose assessed tax for 2025 would have amounted to 22.3 million lari.
The currently effective tax regulations exempt families with an income of up to 40,000 lari from property tax. For households with incomes from 40,000 to 100,000 lari, the tax rate ranges from 0.05% to 0.2% of the property value, and for families with incomes exceeding 100,000 lari, it ranges from 0.08% to 1%.