Tax Allocation Districts and Their Impact

TADs are a financing tool Atlanta uses to encourage redevelopment in under-served areas. When a TAD is created, property tax revenues are frozen at their current level. As property values rise due to new investment, the increase in tax revenue — called the ‘tax increment’ — is set aside to help make investments for neighborhoods in that district, such as infrastructure, parks, or cleanup of blighted properties. Once the TAD ends, all the tax revenue — including the growth — goes back to the general tax base.

Impact of TADs

6,037

Affordable housing units created or preserved

46,000+

Jobs created by TADs (since 2014)

$12B

Total capital investment in neighborhoods

$12x

For every $1 spent by the TAD, $12 of additional, private investment is created

TAD Reporting

2026 TAD Follow-Up Audit

Statements & Records: Current and past TAD financial statements, redevelopment plans and other reports.

Presentations: CDHS and FEC Committee presentations.

What is a TAD?

A Tax Allocation District (TAD) is a geographic area where any increase in property taxes is reserved for community development projects within that area. This revenue, instead of going to general funds for the City, School System, and County, is used to fund local projects persuant each TAD's redevelopment plan. There are currently eight active TADs in Atlanta. 

Atlanta has 8 active TADs (Atlantic Station closed in 2025, and Princeton Lakes closed in 2023). 

How are TAD funds generated?

Redevelopment costs are supported through the pledge of future or the expendeture of actual incremental increases in property taxes generated by new development. Taxing entities, including City of Atlanta, Fulton County and Atlanta Public Schools, must elect to participate in each TAD.

TAD revenues are not static—they grow the overall pie. By accelerating redevelopment and preventing further decline in underinvested areas, TADs ultimately expand the property tax base that fund schools, public safety, and city services citywide. In fact, all participating jurisdictions, APS included, have seen healthy revenue growth over the past 15 years, even with TAD participation.

Halo Effect -- TAD investments touch communities beyond the TADs themselves. Statistics show that property values within half a mile of TAD boundaries increased 23% more than expected, reflecting the positive spillover effects TADs have on surrounding areas.

What kinds of projects do TADs fund?

TADs make investments that benefit neighborhoods and the city as a whole. While TADs are guided by redevelopment plans, they have the flexibility to make much needed investments like affordable housing, early education centers, grocery stores, parks, small business development and commercial spaces. Together, TADs investments have reshaped entire neighborhoods.

Fresh Food Access

Azalea Fresh Market: TAD funding was pivotal in launch a first-of-its-kind municipal grocery store, opened in the heart of Downtown Atlanta, serving neighborhood residents and expanding access to fresh, nutritious food.

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Homeless Services

Salvation Army Center of Hope: TAD funding helped transform Atlanta’s largest emergency and transitional shelter in the Westside, including 437emergency shelter beds, and an education and workforce development center.

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Healthcare/CenterWell Senior Primary Care: TAD funding helped to redevelop a long-vacant building into medical office space, expanding access to senior-focused healthcare in an underserved area on Donald Lee Hollowell Parkway.

Early Education/YMCA Leadership & Learning Center (link to story): TAD funding supported the construction of this Westside facility that provides free early childhood education for more than 600 children in addition to serving as a professional development site for YMCA staff.

Greenspace/Katherine Johnson Memorial Park – TAD funding supported construction of Katherine Johnson Memorial Park, a 3.4-acre greenspace located in Atlanta’s English Avenue neighborhood. It was designed as a “Park with Purpose” to address multiple community needs, including managing 3.5 million gallons of stormwater annually, reducing flood risk and improving environmental health.

Comprehensive Neighborhood Revitalization/Sweet Auburn: One of Atlanta’s most historic neighborhoods is another testament to the impact of neighborhood investment through the TADs. Since its inception nearly 20 years ago, the Eastside TAD has provided essential capital for redevelopment, supporting affordable housing, commercial revitalization, and historic preservation in the area.

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