If you’ve been scrolling through your feed lately, you’ve probably seen the headlines. Trump wants to eliminate property tax. It sounds like a dream, right? No more writing those massive checks to the county treasurer every year. No more feeling like you’re basically "renting" the land you already bought and paid for.
But here is the thing: property taxes are a weird beast. Unlike your income tax, which goes to the folks in D.C., property taxes are almost entirely a local and state affair. This creates a bit of a head-scratcher when a president—or a presidential candidate—starts talking about getting rid of them.
Can a President Actually Kill Property Taxes?
Honestly, the short answer is no. Not directly, anyway.
Under the U.S. Constitution, the federal government doesn't have the authority to tell a town in Ohio or a county in Florida that they can’t levy a property tax. That power is reserved for the states. So, when we talk about how Trump wants to eliminate property tax, we’re usually talking about one of two things: a massive federal "bribe" to states to get them to do it, or a misunderstanding of how the "One Big Beautiful Bill" (OBBB) of 2025 actually works.
In July 2025, the One Big Beautiful Bill Act (Public Law 119-21) was signed into law. It did a ton of stuff. It made the 2017 tax cuts permanent, it messed with the SALT (State and Local Tax) deduction, and it even added a weirdly specific deduction for car loan interest. But it didn't—and couldn't—delete your local property tax bill.
The Real Drama: The SALT Cap and the "Rent" Argument
For a long time, the biggest way the federal government messed with your property taxes was the SALT deduction. You used to be able to write off all your local taxes on your federal return. Then, in 2017, that got capped at $10,000.
👉 See also: Why 425 Market Street San Francisco California 94105 Stays Relevant in a Remote World
People in high-tax states like New Jersey and California absolutely hated it.
The new 2025 law actually tweaked this. For most people, the SALT cap was raised to $40,000, though it phases back down to $10,000 if you're making over $500,000 a year. It’s a huge relief, but it’s not elimination.
Trump’s rhetoric often leans into the idea that property taxes are fundamentally "unfair." He’s argued that Americans should truly own their homes without a perpetual lien from the government. That sentiment has fueled a fire in states like Florida, where Governor Ron DeSantis has been pushing for a constitutional amendment to scrap property taxes for homeowners entirely.
What Happens if Property Taxes Actually Vanished?
Let's play "what if." Suppose the federal government somehow pressured every state to kill the property tax. It sounds great until you look at where that money goes.
Property taxes are basically the lifeblood of your local neighborhood.
✨ Don't miss: Is Today a Holiday for the Stock Market? What You Need to Know Before the Opening Bell
- Schools: In many states, like Oklahoma or Pennsylvania, property taxes fund upwards of 60% to 70% of the public school budget.
- Police and Fire: About 90% of police funding nationally comes from these local pots.
- Infrastructure: Your local roads, sewers, and even the guys who pick up your trash usually rely on that property tax revenue.
If that money disappears, it has to come from somewhere else.
Tax experts, like those at the Tax Foundation, have run the numbers. To replace property tax revenue, states would have to jack up sales taxes to astronomical levels. We're talking 15% or 20% sales tax in some areas just to keep the lights on at the local high school. Or, they’d have to implement a massive state income tax.
Basically, you’re just shifting the "pain" from your house to your paycheck or your grocery bill.
The Tariff Trade-Off
There’s also the "Tariff" theory. Trump has suggested that revenue from new, aggressive tariffs on imports—sometimes 60% or more on goods from China—could eventually replace income taxes. While he hasn't explicitly said tariffs would replace property taxes (since those are local), the idea is part of a broader "total tax reform" philosophy.
The math is... shaky.
🔗 Read more: Olin Corporation Stock Price: What Most People Get Wrong
In 2024, the federal income tax brought in about $2.4 trillion. Tariffs brought in a fraction of that. Even with the new 2025 tariff hikes, the revenue isn't nearly enough to cover the federal budget, let alone "backfill" the trillions of dollars that local governments would lose if property taxes were abolished.
Why This Matters for 2026 and Beyond
If you’re a homeowner, the "eliminate property tax" talk is a double-edged sword. On one hand, your monthly mortgage payment (which usually includes an escrow for taxes) would drop significantly. On the other hand, your property value is tied to the quality of your local schools and safety services. If the schools go broke because the tax disappeared, your house might not be worth as much as you think.
Kinda a catch-22, right?
The One Big Beautiful Bill has already changed the game for the 2025 and 2026 tax years. We're seeing higher standard deductions—$32,200 for married couples in 2026—and a bigger Child Tax Credit. These are real, tangible "wins" for many families. But the total abolition of property tax remains more of a populist rallying cry than a legislative reality.
Actionable Insights for Homeowners
Don't wait for a total tax revolution to manage your bills. There are things you can do right now to lower that burden.
- Challenging Your Assessment: Most people don't know they can appeal their property tax assessment. If your neighbor’s identical house is valued lower, or if the market has cooled but your "assessed value" stayed high, file an appeal with your county. It works more often than you'd think.
- Check for Exemptions: Many states offer "Homestead Exemptions" for your primary residence. There are also specific breaks for seniors (some of which were expanded in 2025), veterans, and people with disabilities.
- Audit Your Escrow: Sometimes your mortgage company overestimates your tax bill and sits on your money. Every year, look at your escrow analysis to make sure they aren't holding too much of your cash in a non-interest-bearing account.
- Stay Local: Since the President can't actually kill your property tax, your local school board and county commission meetings are where the real decisions happen. If you want lower taxes, that’s where you have to show up.
Property taxes aren't going anywhere tomorrow. But as the "One Big Beautiful Bill" continues to ripple through the economy, keeping a close eye on those SALT deduction limits is your best bet for keeping more of your money in 2026.