Five States Consider Ending Property Taxes for Homeowners

A Radical Rethink of Property Taxes

Across the country, a growing number of states are weighing proposals that could dramatically change how local governments are funded: eliminating property taxes for homeowners altogether. For millions of Americans — especially retirees and families on fixed incomes — property taxes can be one of the most stressful and unpredictable expenses tied to homeownership.

Why Property Taxes Matter So Much

Property taxes currently fund the backbone of many local services. They account for roughly 90% of school funding, 70% of local government revenue, and about a quarter of all state and local tax collections nationwide. While they help keep schools open and emergency services running, rising home values have pushed tax bills higher — even for homeowners whose incomes haven’t kept pace.

Five States Testing the Idea

According to a Realtor.com analysis, at least five states are actively exploring ways to reduce or eliminate property taxes: North Dakota, Georgia, Florida, Texas and Indiana. The proposals vary widely. Some focus on phasing out property taxes over the next decade, while others aim to significantly expand homestead exemptions or cap annual tax increases. In several cases, lawmakers are proposing to offset lost revenue with higher sales taxes, service fees or alternative funding mechanisms.

Relief Comes With Tradeoffs

The push for property tax relief highlights a central tension: how to provide meaningful homeowner relief without destabilizing school funding and local government budgets. Analysts warn that replacing property tax revenue could require sharp increases in sales taxes or new service fees, potentially shifting the burden onto consumers in different ways.

What It Means for Homeowners

For homeowners, especially seniors and working families, the idea of eliminating property taxes feels like long-overdue relief. But the debate raises big questions about fairness, sustainability and how communities fund essential services. As these proposals move forward, voters and lawmakers will be forced to weigh tax relief against the long-term health of schools, emergency services and local infrastructure.