Owning a home is supposed to be the American Dream, right? You save up for years, survive the stress of closing, and finally get the keys. But then reality hits. Even after you pay off the mortgage, you don't actually own your house. Not really. You’re essentially renting it from the government forever. If you don't believe me, just try not paying your bill for a couple of years. You'll see how fast that "ownership" dissolves.
It’s no wonder people are obsessed with the idea of no more property taxes.
The burden is getting heavy. In states like New Jersey or Illinois, people are paying five figures a year just for the "privilege" of living in a structure they already bought. It feels like a treadmill that never stops. But is a world without property taxes even feasible, or is it just a pipe dream pushed by politicians looking for votes?
The States Trying to Kill the Tax
Right now, there’s a massive push in several states to move toward a future with no more property taxes. It isn't just talk.
In North Dakota, voters have been wrestling with Measure 4, a radical proposal that would effectively prohibit the state from levying property taxes based on value. Proponents argue it’s the only way to ensure true homeownership. Critics, however, are terrified. They wonder how the state will fund schools, police, and fire departments. If you cut off the main artery of local funding, the body of the community might just wither away.
Wyoming is another battleground. Lawmakers there have been debating various exemptions that would essentially eliminate the tax for long-term residents or seniors. It’s a messy process. They’re trying to balance the needs of retirees who are being priced out of their childhood homes with the cold, hard reality of infrastructure costs.
Texas is the one everyone watches. Governor Greg Abbott has made "eliminating property taxes" a central part of his platform. Texas already has no state income tax, so they rely heavily on property levies to keep the lights on. Moving to no more property taxes in the Lone Star State would require a massive hike in sales tax—potentially making it one of the highest in the nation.
👉 See also: Why Amazon Stock is Down Today: What Most People Get Wrong
You’re basically choosing how you want to be bled. Do you want it taken from your home value, or every time you buy a gallon of milk?
Why Property Taxes Feel So Unfair
The psychological weight of the property tax is different from the income tax. When you earn money, a chunk disappears before you even see it. It hurts, but it’s passive. Property tax is active. You get a bill in the mail. It’s often for thousands of dollars. You have to write a check for money you’ve already been taxed on when you earned it.
It feels like double dipping.
Property taxes are also "unrealized" wealth taxes. Imagine you bought a house in Austin or Boise ten years ago for $200,000. Now, because the market went crazy, it’s "worth" $600,000. You haven't made any extra money. Your salary didn't triple. But your tax bill might have. You’re being taxed on "wealth" that you can't actually spend unless you sell the roof over your head.
That is the core of the no more property taxes movement. It’s a fight for the right to stay put without being penalized for a hot real estate market you didn't create.
The Trade-Off: Where Does the Money Come From?
Let's get real for a second. Money doesn't grow on trees, and the government is never going to just stop spending. If we move to a system with no more property taxes, the revenue has to come from somewhere else.
✨ Don't miss: Stock Market Today Hours: Why Timing Your Trade Is Harder Than You Think
There are basically three levers the government can pull:
- Sales Tax: This is the most common alternative. But to replace property tax revenue, sales taxes would likely have to jump to 12% or even 15% in some areas. This hits lower-income families the hardest because they spend a larger percentage of their paycheck on taxable goods.
- Income Tax: States like Florida and Texas love bragging about having no income tax. If they cut property taxes, they’d almost certainly have to implement an income tax to survive. For many, that’s a non-starter.
- Massive Spending Cuts: We're talking about closing schools, letting roads crumble, and reducing police forces. Most people want lower taxes, but very few people want their 911 call to go to voicemail.
The "Rent Control" for Homeowners
Some states aren't going for a total elimination but are instead opting for "circuit breakers."
Florida has the "Save Our Homes" cap. It limits how much the assessed value of your primary residence can go up each year. Even if the market goes up 20%, your tax basis can only go up 3%. It’s not no more property taxes, but it’s a way to keep people from being taxed out of their homes.
California has Proposition 13, which is legendary and controversial. It locks in your tax rate based on the purchase price. If you bought a house in Santa Monica in 1975, you’re paying pennies compared to the guy who bought next door last week. It’s great for the old-timers, but it creates a massive disparity and makes it incredibly hard for young people to enter the market.
The Social Cost of a Tax-Free World
We have to talk about schools. In the United States, public education is tied directly to property taxes. This is why rich neighborhoods have amazing schools and poor neighborhoods often struggle.
If we achieved no more property taxes, we would have to completely rethink how we fund education. Would it be a flat state-wide fund? That might actually make things more equitable, but it would also take away "local control," which is a phrase suburban parents love to yell at school board meetings.
🔗 Read more: Kimberly Clark Stock Dividend: What Most People Get Wrong
The shift would be seismic.
Practical Steps for the Here and Now
While the dream of no more property taxes is being debated in state houses, you’re still stuck with a bill. You don't have to just take it lying down, though.
Most people don't realize they can appeal their assessment. It sounds intimidating. It isn't. Roughly 30% to 60% of homes in the U.S. are over-assessed, yet fewer than 5% of homeowners ever bother to challenge it.
- Check the "Comp" Data: Look at what similar houses in your neighborhood actually sold for, not what Zillow says they are worth. If the county says your house is worth $500k but the neighbor’s identical house sold for $450k, you have a case.
- Look for Exemptions: Are you a veteran? A senior? Do you have a disability? Many states have "homestead exemptions" that knock a chunk off your taxable value, but you usually have to apply for them manually. They don't just give them to you.
- Audit Your Property Record: Sometimes the county thinks you have a finished basement when it's actually just a crawlspace with a lightbulb. Correcting these errors can drop your bill significantly.
The movement for no more property taxes isn't going away because the current system feels fundamentally broken to so many people. It’s a conflict between the need for public services and the basic human right to feel secure in one's own home.
Whether we ever see a state actually pull it off without crashing their economy remains to be seen. For now, the best we can do is watch the legislation, vote for the "levers" we prefer, and fight our individual assessments like our bank accounts depend on it. Because they do.
True homeownership shouldn't feel like a permanent lease from the tax man. Until the laws change, keep your records organized, stay aware of local levy votes, and never assume the government's math on your home value is correct. The first step toward paying less is realizing you have the right to question the bill.