States Consider Eliminating Property Taxes for Homeowners

The Growing Movement to End Property Taxes

A bold new wave is sweeping across Republican-led states as lawmakers push to eliminate property taxes for homeowners entirely. Republicans in the Georgia House unveiled a complex effort to phase out homeowner property taxes by 2032, while in Florida, GOP Gov. Ron DeSantis says that is his goal, with lawmakers currently considering phasing out nonschool property taxes on homeowners over 10 years. Rising property values have inflated tax bills in many states, but ending all homeowner taxes would cost billions or even tens of billions in most states. It is unclear if lawmakers can pull it off without harming schools and local governments that rely on the taxes to provide services.

Republicans are echoing those who say taxes, especially when the taxman can seize a house for nonpayment, mean no one truly owns property. "No one should ever face the loss of their home because they can't pay rent to the government," Georgia Republican House Speaker Jon Burns said Wednesday. These audacious election-year efforts could be joined by ballot initiatives in Oklahoma and Ohio to eliminate all property taxes. Such initiatives were defeated in North Dakota in 2024 and failed to make the ballot in Nebraska that year, although organizers there are trying again.

North Dakota Leads the Charge

Last year, North Dakota's Republican-controlled Legislature expanded its primary residence tax credit from $500 to $1,600 a year. Officials in December said the tax credit wiped out property taxes for 50,000 households last year and reduced bills for nearly 100,000 more. That cost $400 million in state subsidies for the 2025 and 2026 tax years. The state's oil wealth makes this ambitious goal more feasible than in other states.

"It works, and we know we can build on it to provide even more relief and get property taxes to zero for the vast majority of North Dakota homeowners," Republican Gov. Kelly Armstrong said. North Dakota officials claim they're proving that complete property tax elimination is possible when states have sufficient alternative revenue sources.

The Financial Reality and Challenges

The numbers behind these proposals reveal the massive scale of change required. Burns wants Georgia to wipe out $5.2 billion in homeowner property taxes — more than a quarter of the $19.9 billion in property taxes collected in 2024, telling cities, counties and school districts to fall back on current or new sales taxes. For homeowners like Georgia resident Hodnett, the relief would be significant— his annual property tax bill rose from $2,000 to $3,000 between 2018 and 2024. He is disabled and living on $30,000 a year.

The question is whether local governments and K-12 schools should be expected to cut spending, or whether they will be allowed to make up revenue from some other source. "I think the complete elimination of the property tax for homeowners is really going to be very difficult in most states and localities around the country, and undesirable in most places," said Adam Langley, of Lincoln Institute of Land Policy. Local governments would be able to send homeowners a yearly bill for specified services such as garbage pickup, street lighting, stormwater control and fire protection, but lawmakers aren't calling that a tax. Voters could also approve assessments for government or school improvements.

The Path Forward

While the political appeal of eliminating property taxes is undeniable, the practical challenges remain formidable. Property taxes have increased by nearly 30 percent nationwide in the five years between 2019 and 2024, reaching a median of $250 per month. Statehouses, especially in Republican-led regions, are considering dramatic reforms that promise significant relief to property owners but carry major implications for local government funding and essential services.

The success of these initiatives will likely depend on each state's unique financial circumstances and political will. States with substantial alternative revenue sources like North Dakota's oil money may find elimination more feasible, while others may need to settle for caps or reductions. As these proposals advance through legislatures and potentially to voter ballots, they represent one of the most significant shifts in local government financing in decades—with homeowners watching closely to see if their property tax bills could become a thing of the past.