These 6 States Might Eliminate Property Taxes

Property taxes are the greatest contributor to revenue for local governments, providing essential funds for things like schools, roads, and fire prevention. But they’re also a huge pain.

For one, they’re complicated to calculate, relying on imperfect property assessments and confusing metrics like mill levies, or “mills,” which represent $1 of every $1,000 in assessed property value.

Worst of all, property taxes have put undue strain on many household budgets, skyrocketing alongside the record home appreciation of the past five years.

Many states have had enough and are proposing to eliminate property taxes despite their essential function for many local governments. Here’s a closer look at each of these states’ proposed plans to ax the property tax.

1. Florida

Of all the property tax reform plans circulating in Tallahassee, HJR 201 is the most sweeping.

The measure would abolish all non-school property taxes on homesteads beginning Jan. 1, 2027, effectively eliminating one of the largest recurring housing expenses for millions of Florida homeowners.

Gov. Ron DeSantis, has repeatedly framed eliminating property tax as a long-overdue liberation from what he calls “the more oppressive and ineffective form of taxation,” arguing that property owners shouldn’t have to “pay rent to the government” for homes they already own.

But economists warn that the implications would be massive. Property taxes currently provide more than one-third of Florida’s state and local revenue, meaning counties would likely face steep budget shortfalls almost overnight. To compensate, lawmakers could raise sales taxes or introduce consumption-based levies—moves that tend to hit lower-income residents hardest.

Still, if voters approve HJR 201 by the required 60% threshold in November, Florida would become the first state in U.S. history to attempt a complete phase-out of property taxes—a radical experiment that could reshape how every homeowner in the nation thinks about the cost of keeping a roof overhead.

2. Illinois

Illinois residents pay the second-highest property taxes in the nation, according to a recent analysis, and state Sen. Neil Anderson (R-Andalusia) wants to do something about it. 

Anderson introduced SB 1862, co-sponsored by state Sen. Dave Syverson (R-Cherry Valley), to create a homestead exemption. This exemption would eliminate property taxes for homeowners who've paid their share on their residences continuously for at least 30 years.

While longtime homeowners cheered the "30 years and you're done" proposal, some who have been in their home for a shorter period expressed anger.

This is just the beginning, Anderson vowed.

“If we can start somewhere and just get some kind of agreement that at some point, whether it's 10 years, 20 years, 30 years, 50 years ... you've paid enough money, and you actually own your property and you don't have to pay anything anymore. That's the starting point I want to get to here,” he told The Center Square.

3. Kansas

State Rep. Blake Carpenter (R-District 81) introduced an innovative proposal via House Concurrent Resolution 5014. 

Carpenter’s approach would eliminate certain sales tax exemptions, generating approximately $2 billion annually. That money would then flow into a newly established Freedom From Taxes Fund, where it would eventually generate enough interest to cover the state's education funding—which is currently supported by property taxes.

This strategy is inspired by Norway’s sovereign wealth fund, which leverages accumulated revenues for public benefit. Carpenter estimates the Kansas' fund could reach $13 billion to $15 billion within eight years, at which point the annual interest alone would replace roughly $900 million currently raised through property taxes.

There’s even promise that the fund could one day offset income taxes in the state.

4. Ohio

A grass-roots campaign is gaining steam in the Buckeye State that would abolish property taxes by adding an amendment to the state Constitution. Citizens for Property Tax Reform is pushing to get property tax abolition on the ballot in 2025, led by a coalition of homeowners who have been pushed to the brink by their tax burdens.

The group's spokesperson, Beth Blackmarr, told Realtor.com® that she "hit the floor" after she opened her tax bill to see a 51.9% jump in her assessed value. That shock led her to connect with others who were experiencing similar burdens, and now, they have until July 1, 2025, to get 413,000 signatures from registered Ohio voters to get their proposal on the ballot.

5. North Dakota

In January of this year, North Dakota Gov. Kelly Armstrong used his first State of the State address to propose an ambitious plan that would eliminate property taxes for most homeowners within a decade. His proposal would expand the state’s primary residence tax credit from $500 to $1,550 in its first year, funding the program through investment earnings from the state’s $9 billion Legacy Fund.

As the fund grows, homeowners would receive larger credits each year until property taxes effectively disappear. The plan also includes a 3% annual cap on local property tax budgets—covering cities, counties, schools, and park districts—though local governments could carry over unused increases for up to five years to plan major projects.

Armstrong acknowledged pushback from local leaders but argued that since the state would soon pay over half of local property tax costs, it should have a say in budget growth. While the idea follows a failed 2024 ballot measure to abolish property taxes outright, Armstrong framed his proposal as a more “durable and responsible” path toward the same goal.

6. Pennsylvania

State Rep. Russ Diamond (R-LD 102) introduced House Bill 900 with a clear goal: enabling true homeownership without homeowners feeling like tenants of the government. 

"I want people to own their homes and not have to rent from the government, all across Pennsylvania," he told Fox News.

Diamond did not immediately have a plan to offset the loss of revenue from eliminating property taxes, quipping on his Substack that "folks get all twisted into knots over how we’re going to pay for the things those taxes currently pay for—frankly, they’re missing the point."

To offset lost revenue, state Sen. Doug Mastriano (R-District 33) proposed taxing remittances sent internationally (e.g., Western Union transfers) and imposing new taxes on endowments held by Pennsylvania's wealthiest universities.

The future of property taxes

Proposals to eliminate property taxes in these states—and similar successful legislation in places like Montana to reduce taxes on primary homeowners—show how this movement is gaining momentum. The greatest challenge to these laws, however, is twofold.

Firstly, statewide action risks infringing on local governments, which are responsible for creating their own formulas for levying property taxes. A solution that works for one city is unlikely to work for more rural areas in the state, possibly creating insurmountable revenue shortfalls.

Likewise, any efforts to offset the taxes on wealthier homeowners (like owners of second homes) face significant headwinds at the polls. Overwhelmingly, these are the people who show up to vote.