Homeowners in these states may soon stop paying property taxes

As property tax bills climb and state coffers swell, lawmakers in several states are weighing aggressive plans to slash—or even eliminate—property taxes, betting that surplus revenues and tax overhauls can ease voter frustration without blowing holes in local budgets, according to a report from Realtor.com. 

What they're saying:

"Some of these states, namely Texas, have high property tax rates that are unpopular among voters, especially when the state runs a budget surplus nearly every year," Joel Berner, senior economist at Realtor.com, said in an online statement. "The rest have all seen major increases in the taxable value of homes that are leading to higher property tax burdens."

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Which states are considering limiting property taxes?

Dig deeper:

North Dakota

North Dakota Gov. Kelly Armstrong has proposed using about $483 million from the state’s general fund, along with future earnings from the oil tax savings account, to gradually offset and ultimately eliminate property taxes for most homeowners within a decade.

The plan would begin by expanding the primary residence tax credit, cutting property tax bills by up to $1,550 per household each year. The credit would grow every two years as oil tax revenues increase, while annual local property tax hikes would be capped at 3%. Additional relief would expand credits for income-eligible seniors and people with disabilities.

Georgia

GOP state lawmakers have proposed phasing out most property taxes by 2032, beginning with a $1 billion state investment to reduce current taxes. The plan would raise the homestead exemption from $5,000 to $150,000 in 2031, with most remaining property taxes eliminated the following year.

To offset lost revenue, local governments would charge homeowners directly for services like garbage collection, stormwater management, and fire protection, while other projects—such as infrastructure or school improvements—would require voter approval.

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Florida

Florida lawmakers have debated property tax elimination or relief for about a year, considering more than half a dozen proposals to phase out or reduce taxes on primary residences. Republican Gov. Ron DeSantis has urged them to unite behind a single plan to present to voters.

Highlighting the fiscal challenge, a Tax Foundation analysis found that replacing lost property tax revenue with sales taxes would require raising the average rate from 7.02% to 15.34%, a figure the group says may underestimate the gap as taxpayer behavior changes.

Texas

Texas Gov. Greg Abbott is pushing to eliminate school property taxes after years of relief measures such as rate compression and expanded homestead exemptions. He has proposed using state budget surpluses to temporarily buy down those taxes, though lawmakers are still debating how to replace lost school funding long term.

Indiana

Indiana’s HB 1288 would phase out taxes on tangible property after Dec. 31, 2026, and eliminate property taxes entirely in 2027. Lost revenue would be replaced by expanding sales and use taxes to most services, with proceeds redistributed through a local government sharing fund.

‘Trump Homes’

Big picture view:

Homebuilders are drafting a proposal to develop nearly 1 million "Trump Homes" aimed at addressing the U.S. housing affordability crisis, Bloomberg News reported Tuesday. 

The plan would involve selling entry-level homes through a pathway-to-ownership program backed by billions of dollars in private capital, according to people familiar with the proposal.

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At an estimated 1 million homes, the program could deliver more than $250 billion in housing, Reuters reported. 

A White House official told Bloomberg the administration is not actively considering the proposal, which would be complex to implement and may struggle to gain enough support to advance.

In recent weeks, the Trump administration has floated proposals aimed at easing the affordability crisis, including a 50-year mortgage, a ban on large investors buying houses and a bid to lower mortgage rates by spending $200 billion to buy mortgage bonds. Yet some economists believe the proposals would likely have a minimal impact.

U.S. housing market latest

Why you should care:

The U.S. housing market slump dragged into its fourth year in 2025 as sales remained stuck at a 30-year low with rising home prices and elevated mortgage rates keeping many prospective home shoppers out of the market.

Sales of previously occupied U.S. homes totaled 4.06 million last year, essentially flat versus 2024 when sales sank to the lowest level since 1995, the National Association of Realtors said Wednesday. Without rounding the figures, sales last year were slightly lower than in 2024.

All told, existing U.S. home sales have declined on annual basis since 2022.

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The median national home price for 2025 rose 1.7% to $414,400, the NAR said.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. The combination of higher mortgage rates, years of skyrocketing home prices and a chronic shortage of homes nationally following more than a decade of below-average home construction have left many aspiring homeowners priced out of the market.

The average rate on a 30-year mortgage was around 7% a year ago and remained elevated for much of the year until late summer, when mortgage rates began to ease. The average rate closed out the year at 6.15%, its lowest level since October 2024, according to Freddie Mac.

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