Lilburn Property Tax Closing Proration: Fall 2026 Guide

On August 31, 2026, Lilburn City Council voted 4-0 to set the 2026 city millage rate at 5.430 mills. That is a full mill above the 4.430 rate the city had been using. One councilmember noted it was the first increase in ten years. City tax bills based on the new rate won't be mailed until October 15. So any closing calculated before that bill exists is probably estimating city taxes from a number that is now out of date. The Georgia Association of REALTORS purchase and sale agreement says the gap doesn't disappear at the closing table. It follows the buyer and seller afterward.

For anyone closing on a home inside Lilburn city limits between now and the end of the year, that gap matters more than any other tax detail. Everything else here explains where it comes from and how to handle it.

Two bills, on two calendars

In most of Gwinnett, a home inside a city still gets one combined tax bill. The county Tax Commissioner's 2026 bill FAQ names only Berkeley Lake, Grayson, and Peachtree Corners as cities whose taxes are combined with the county's. Homeowners in other cities get a separate city bill. Lilburn is on the Tax Commissioner's list of cities that set and collect their own property taxes, and the county tells those homeowners to contact their city directly.

Here is the fall 2026 calendar for a home inside Lilburn city limits:

The City's October 5 bulletin points out that the two bills have separate payment deadlines. A closing in the next few weeks can land after the county bill is issued and before the city bill exists. Your closing attorney would then be working from an actual figure for one tax and an estimate for the other.

Which "Lilburn" addresses get the second bill

All of this applies only inside city limits. Many homes have a Lilburn, GA mailing address but sit in unincorporated Gwinnett, and those homes get a county bill and no city bill.

The City links to a list called "Addresses in the Lilburn City Limits" and to Gwinnett's GIS browser. The Gwinnett GIS browser lets you search by address, parcel, owner, street, or intersection. The City's address list is marked as last updated February 13, 2024. If a property is near the boundary, confirm with the City before relying on that list.

Why last year's bill is the wrong yardstick this year

If the current year's bill hasn't been issued when a Georgia closing happens, the usual practice is to estimate taxes from the prior year's bill. The seller credits the buyer for the seller's share through the closing date, and the buyer pays the full bill when it arrives. Sherman Phalen Law, a Georgia closing-law firm, describes this as the customary approach.

In most years the estimate and the real bill are close. This year, inside Lilburn, they won't be. The 2025 city rate was set to hold at 4.430 mills, the same as 2024. Staff explained that the one-mill increase covers about 0.4 mills for cost-of-living and policy-related revenue loss, and the rest funds seven new city positions. An estimate built on 4.430 will undershoot the real city bill.

At the August 31 work session, staff and council discussed a commonly cited estimate of about $155 a year in added city tax on a $400,000 home. They also said that figure doesn't account for the City's 8% homestead assessment cap or its senior exemption, both of which reduce the actual increase for many homeowners. The same discussion noted that roughly 15% of homesteaded properties went over the 8% cap this year.

Here is a rough example using that number. Say a seller closes on October 9, before the city bill is mailed. The seller owned the home for 281 days of 2026, about 77% of the year. If the closing statement credited the buyer based on the old rate, the seller's share of a $155 increase would be about $119, and that amount went uncredited at closing. For a home that qualifies for the cap or the senior exemption, the real figure could be lower. It's a modest amount, but it is a real obligation that comes due after everyone has signed and moved on.

What the GAR contract requires after closing

The 2026 printing of the Georgia Association of REALTORS purchase and sale agreement, form F201, prorates property taxes as of the closing date. It then adds this:

"in the event ad valorem property taxes are based upon an estimated tax bill or tax bill under appeal, the party who paid less than their pro rata share of taxes to the other party at Closing or collected more than their pro rata share of taxes from the other party at Closing, shall upon the issuance of the actual tax bill or any appeal being resolved, promptly pay the other party the amount necessary to correctly prorate the tax bill."

In a Lilburn closing estimated at 4.430 mills, the seller is the party who paid less than their share. When the 5.430-mill bill is issued, the contract says the seller owes the buyer the difference. The same section assigns any pending tax appeal for the sale year to the buyer, and makes the buyer responsible to the county and city for that year's taxes, including indemnifying the seller against claims for unpaid taxes. If either party's contract was changed by special stipulation, those terms control, so read your own contract.

Closings after October 15 work differently. Georgia Title describes the usual handling once the current bill is out. If the seller already paid it, the buyer reimburses the seller for the share after closing. If it's issued but unpaid, the closing attorney typically pays it at closing and adjusts each party's share. The Gwinnett County bill is already in that position for every fall closing.

The bill that still goes to the seller

Many sellers are surprised by this. After a sale during the year, the Gwinnett Tax Commissioner bills both the January 1 owner and the new owner. Taxes accrue in full on January 1, and the January 1 owner is responsible for the whole year.

Usually the buyer pays on time and nothing more happens. If the county bill goes delinquent, though, the lien is filed in the January 1 owner's name. That changes only if all three of these are in place within 90 days of the due date:

1. Acceptable proof that the buyer assumed the tax liability has been submitted to the Tax Commissioner.
2. The deed is in the new owner's name.
3. The deed has been properly recorded.

Unpaid county taxes accrue 0.81% interest per month starting the first day past due. A 5% penalty applies after 120 days, with another 5% every 120 days after that, up to 20%. The interest and penalty schedule is on the county's Deadlines and Due Dates page, and the lien rules are on its Just Sold a Home page. For the separate city bill, questions go to the City of Lilburn at 770-279-3705.

For buyers closing in the fourth quarter

The same January 1 date matters for buyers in another way. Gwinnett requires homestead exemption applicants to own the home and live in it as their primary residence on January 1 of the year they apply. If you close in October, November, or December 2026 and are living there on January 1, 2027, you would apply for 2027. Gwinnett accepts applications year-round and says the cutoff for current-year relief is the appeal deadline printed on your Notice of Assessment. The City's March 2026 notice gave April 1 as the 2026 deadline and said one application covers the Gwinnett exemptions. Go by the date printed on your own 2027 notice.

Before you sign the settlement statement

These steps fit either side of a fall closing inside Lilburn city limits:

1. Confirm the address is in the city. Use Gwinnett GIS or call the City. If it's outside city limits, there is no city bill and the issue above doesn't apply.
2. Ask which rate the city tax estimate used. If the closing happens before October 15, ask the closing attorney whether the city figure is based on 4.430 mills or 5.430.
3. Agree on how the true-up will happen. Under F201, the party who underpaid owes the difference once the actual bill issues. Write down who will send the city bill to whom, and when.
4. Check that the county bill is handled at closing. The Gwinnett bill is already issued, so confirm on the statement whether it is being paid at closing or prorated as paid.
5. Sellers, keep your closing documents. You'll get a county bill as the January 1 owner, and the 90-day lien rule depends on recorded proof that the buyer assumed the liability.

FAQ

My home has a Lilburn mailing address. Will I get a city tax bill? Only if the parcel is inside Lilburn city limits. The City's address list and Gwinnett GIS are the places to check.

I sold in the spring and just got a Gwinnett tax bill. Was my proration wrong? Not necessarily. The Tax Commissioner bills both the January 1 owner and the new owner after a sale. Check your settlement statement to see how 2026 taxes were prorated.

Does the 5.430-mill rate affect my county bill? No. The 5.430-mill rate applies only to the City of Lilburn bill. In Gwinnett's millage table, the Lilburn district shows a 0.00 city component on the county-billed side because Lilburn bills its own city taxes.

Will the tax true-up after closing be large? Using the City's $155 example for a $400,000 home, the after-closing difference would usually be a portion of that amount, and less where the assessment cap or senior exemption applies. Your closing attorney can calculate the exact figure from the actual bill.

Before I started selling homes, I worked in title and settlement, where tax prorations get calculated line by line. If you're buying or selling inside Lilburn city limits this fall and want someone to check how the city tax line was estimated before you sign, Audrey Bankhead is glad to go through your settlement statement with you. Let's Connect.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.