7 states pushing to eliminate property taxes in 2026

Property taxes have long been one of the most frustrating ongoing costs of homeownership. You buy a house once, but the tax bills never stop coming in. Even long after you've paid off the mortgage, your local government has you on the hook year after year.

Think about it: What other major purchase do you fully pay for, then keep paying taxes on until the day you sell it?

Take New Jersey as an example. With an average home value of $569,411 and an effective property tax rate of 1.88%, the typical homeowner pays about $10,705 in property taxes annually. Typically, their only recourse is a property tax appeal, which merely shrinks the bill - though it can backfire. Over the course of a 30-year mortgage with modest appreciation, those fees will amount to between $350,000 and $450,000 in property taxes alone. And though the Garden State ranks as the country's most tax-disadvantaged state, these costs still stifle homeowners nationwide by driving up the long-term cost of ownership.

With so many Americans frustrated by annual property tax bills that keep rising with every reassessment, it's no wonder that in 2026, several states are considering drastically overhauling or eliminating property taxes altogether. In this article, TurboTenant breaks down what property taxes typically cover, why states are rethinking them, the seven states leading the charge, and how they plan to replace the lost tax revenue.

What property taxes typically cover

Millions of American homeowners and real estate investors dutifully pay property taxes to their local government year after year, but how often do they stop to consider where that money actually goes? With an average property tax bill of around $3,000 nationally, the breakdown is definitely worth a closer look.

Property taxes pay for essential services that people rely on every day, including:

• Public schools: Teacher salaries, school operations, and classroom resources.
• Police/fire departments: Emergency response services, staffing, and public safety operations.
• Roads and infrastructure: Road maintenance, repairs, bridges, and transportation systems.
• Local government services: Administrative functions, courts, and essential municipal. operations
• Parks and community services: Public parks, recreation programs, and community facilities.

Without tax levies, local governments would face major funding gaps or need to rely on alternative revenue sources, making any changes to the system far more complex than they appear.

So, why is there a growing push to overhaul property taxes?

Funding for essential services has to come from somewhere, so why are states now pushing to eliminate one of the most reliable sources of that revenue? Here's what's driving the movement.

Property taxes are a life sentence: If you own property, you'll pay taxes on it indefinitely. Unlike other large purchases, such as college tuition, home renovations, or furniture, the tax bill for a property never ends until you sell it. In today's high-inflation, low-affordability environment, that's a morale-zapping reality for most homeowners.

Property tax assessments have grown rapidly: Over the last 10 years, home values have increased by roughly 5% annually nationwide, meaning a homeowner who bought a $300,000 home in 2016 may now be taxed on a home valued at nearly $500,000 in 2026. While that appreciation builds equity, it also increases the annual tax bill, often faster than many homeowners budgeted for.

Property taxes are highly visible: Unlike smaller, incremental taxes like sales tax, property taxes arrive as large, lump-sum bills that can blindside owners due to increased property valuations. That visibility is impossible to ignore and creates friction, which often leads to stronger public outcry for reform.

State governments see this as an opportunity: Lawmakers are responding to growing public frustration by pushing overhauls to outdated systems. In some cases, that includes proposals to restructure or even replace property taxes with alternative models they argue would be more efficient and equitable for taxpayers.

With momentum building and pressure mounting, several states are now moving beyond discussion and toward real proposals to overhaul or eliminate property taxes. Here are seven of the most notable.

Texas

Texas has taken aggressive steps to slow the rise in property taxes across the state, including boosting the homestead exemption to $100,000 and limiting how quickly cities and counties can increase tax revenue without voter approval. Cities and counties must also seek voter approval if property tax revenue exceeds a set threshold, helping to slow the pace at which tax bills rise along with home values.

While these reforms are already in place, Texas lawmakers continue to revisit property tax policy in each legislative session. Additional relief measures, tighter limits on local tax growth, and further increases in homestead exemptions remain on the table. In fast-growing areas like Austin and Dallas, rising home values keep the heat on lawmakers to keep pushing for more reform.

Florida

Florida already limits how fast its property taxes can rise through the Save Our Homes Amendment, which caps annual increases for primary residences at 3%. Beyond that, lawmakers have continued expanding relief through higher homestead exemptions and additional proposals aimed at easing the overall tax burden. Some policymakers, including Gov. Ron DeSantis, have also explored slashing property taxes in favor of consumption-based revenue, though some critics remain skeptical.

Any serious effort to eliminate property taxes would require replacing tens of billions in local funding, particularly for schools. In fast-growing markets like Miami, Tampa, and Orlando, where home values have surged, rising assessments are quickly offsetting much of that relief.

Georgia

Georgia has shifted from discussion to action, with lawmakers advancing major property tax reform proposals in 2026. Measures like SB 33 and HB 1116 would cap annual assessment increases at the lesser of 3% or inflation, giving homeowners more stability as property values rise.

In addition to capping assessments, HB 1116 would allow local governments to adopt a 1% sales tax to offset or reduce property taxes, shifting much of the burden away from homeowners. Supporters say this protects households, especially seniors on fixed incomes, while critics warn that it could shift costs to renters and lower-income residents.

While full-scale elimination is highly unlikely, Georgia is now among the more aggressive states pushing deeper property tax reform.

Ohio

Ohio homeowners are feeling the impact of recent reappraisals, where rising home values have pushed tax bills higher almost overnight. In response, lawmakers have introduced relief proposals, including expanded exemptions and measures to limit reassessment-driven increases. Some Ohioans also point out that rising property taxes don't just harm homeowners, as landlords and businesses often pass those costs along to renters.

These discussions are still ongoing. But pressure is building as more homeowners face higher bills tied to updated valuations. Recent proposals have focused on short-term relief for those most affected by sharp increases. While full elimination is unlikely, Ohio is attempting to make its property taxes more predictable, even if that means shifting some of the financial burden elsewhere.

Indiana

Indiana already limits property taxes through its "circuit breaker" caps, which restrict property tax bills to 1% of a home's assessed value for primary residences. Even with that protection, rising home values have pushed tax bills higher in many areas. In response, lawmakers have explored adjustments to assessments and targeted support for homeowners facing steeper-than-average increases.

Lawmakers are now advancing recent proposals that would slow the growth of local tax revenue from about 5.3% to 3%, while delivering roughly $200 in average annual relief to homeowners. The plan also includes additional credits for seniors and veterans, but has raised concerns about reduced funding for local governments and schools. While phasing out property taxes altogether remains a long shot, Indiana is actively working to make its system more balanced.

Kansas

Kansas has focused on slowing the rate at which property taxes rise rather than eliminating them outright. Laws like the state's Truth in Taxation system require local governments to notify taxpayers and hold public hearings before increasing revenue beyond prior levels. In areas where home values have climbed quickly, that transparency is intended to reduce surprise increases and give residents more insight into local tax decisions.

While these measures have surely helped, they haven't eliminated the pressure. On April 8, Gov. Laura Kelly pushed for additional relief, emphasizing that "Kansans deserve real property tax relief, and they deserve the truth about how such relief can be accomplished." While no sweeping overhaul has come to fruition yet, the focus in Kansas remains on limiting sudden property tax spikes, even as local governments work to maintain funding for schools and essential services.

Nebraska

Nebraska homeowners face some of the highest property tax burdens in the country, with effective rates around 1.5% to 1.7% of a property's value. That pressure has increased in recent years as both farmland values and home prices have continued to rise. In response, lawmakers have introduced proposals to reduce reliance on property taxes by increasing state support for schools and expanding consumption-based revenue sources.

Some of the most notable proposals would cut school property taxes by half or more and replace the lost revenue with expanded state funding, marking a major shift in how local governments finance education statewide. These ideas reflect a coordinated push to reduce reliance on local property taxes, even if that requires expanding sales taxes or significantly increasing state-level funding.

How will these states plan to collect lost revenue from eliminated property taxes?

Replacing property tax revenue is no small task, and any state considering doing so must find alternative sources of funding for schools, infrastructure, and local services. Here are a few broad approaches states are considering.

Raise sales taxes: In states like Texas and Florida, one option is raising sales taxes. That could mean higher costs at checkout, whether you're buying groceries in Houston or dining out in Miami.

Adopt consumption-based tax systems: Some states are exploring broader consumption taxes that expand the scope of what is taxed and by how much. That could include services like home repairs or gym memberships, spreading out the burden across everyday spending.

Streamline government spending: In places like Indiana or Kansas, lawmakers may look to cut costs by reducing administrative overhead, consolidating services across departments, or slowing the pace of budget growth to limit the need for replacement revenue.

Any pivot away from property taxes would likely involve a mix of these strategies. While some homeowners and landlords may benefit from the reductions, the overall tax burden will never disappear.

How far can these 7 states really go?

While momentum is building in certain states, eliminating property taxes is nearly impossible. These essential revenue streams fund local schools, fire departments, and basic services people rely on every day. Across the country, that funding supports fast-growing communities already stretched thin, as populations and home values continue to boom, driving up assessments.

The appeal of eliminating property taxes is clear. No more yearly bill tied to a property you already paid for feels like a win for homeowners and DIY landlords. But as seen in Texas and Florida, most reforms have focused on tax relief rather than outright removal. Not to mention, rising home values in hot real estate markets still push tax bills higher, even as rates drop lower.

In the end, the funding once collected by property taxes won't simply disappear; it'll have to come from somewhere else. Whether it shows up in higher sales taxes, new fees, or tighter local budgets, someone will still foot the bill. The real dilemma across America is deciding exactly where the burden lands and who it hits the hardest.

This story was produced by TurboTenant and reviewed and distributed by Stacker.

Copyright 2026 Stacker Media, LLC

This story was originally published April 30, 2026 at 6:30 AM.