States Want to Cut Property Taxes After Inflation
As the 2026 legislative sessions open across the country this month, lawmakers in at least 10 states are introducing proposals to cut property taxes, and several governors are enacting multibillion-dollar property tax cuts.
It’s a burning issue: Rising home values have pushed property taxes to painfully high levels. Property taxes are often accompanied by home assessments that occur every few years, and the increase in home prices from 2020 to 2022 has resulted in higher property tax bills.
Property taxes fund schools, roads and police departments – and are often the largest source of revenue for local government. But politicians now face the brunt of property tax increases as the midterm elections loom, said Katherine Loughead, director of state tax initiatives at the Tax Foundation.
“Across the country, Americans are facing rising property taxes because of inflation and because of the housing shortage,” Loughhead said. “State policymakers are under tremendous pressure to respond to taxpayer concerns, especially in an election year.”
Include government-level proposals. It’s too early to gauge how many federal property tax reduction efforts may be successful, but some of the initiatives appear to have real momentum.
“Taxpayers and policymakers, to some extent, want both. They want to continue to increase spending, but they also want to lower property taxes,” Loughead said. Still, he adds, “Many of the proposals we see have legs and have a real chance of being adopted.”
The bills will need to move through state legislatures to become law. In some cases, such as Florida and Kansas, voters may have the final say in the upcoming election.
States considering property tax cuts in 2026
While the majority of Americans’ property taxes are levied by local governments, governors and state representatives want to block property tax increases and regulate local government spending. States can also offer relief through exemptions or property tax credits to certain groups, such as veterans or homeowners age 65 and older.
Republicans are leading the charge for property tax cuts. For example, in her 2026 State of the State address, Iowa Gov. Kim Reynolds announced major property tax relief plans that will save residents an estimated $3 billion over six years. (Senate Republicans and House Republicans in Iowa have introduced their own property tax cut bills.)
“Property taxes are rising faster than inflation, faster than payroll, and faster than population growth,” said Reynolds, whose plan would cap rising local government spending. “In the last two years, they’ve gone up more than 10%. And that’s unacceptable.”
Some Democrats are also proposing legislation to lower property taxes. Wisconsin Gov. Tony Evers is advancing a $1.3 billion property tax relief plan that would block tax increases and lower taxes for veterans and senior citizens, paid for with surplus funds.
In North Carolina, a bipartisan group of lawmakers is exploring options for property tax relief. Gov. Josh Stein, a Democrat, told WRAL that he is “very open to the idea of trying to keep costs down for certain vulnerable people; however he is “wary” of stepping on the heels of local governments.
Let’s zoom in on a few other key regions:
Texas
Gov. Greg Abbott, a Republican, is making property tax reform a top priority as he runs for re-election for a record fourth term. (Money reached out to his campaign office to get details of his plan.)
The governor will limit local spending increases to a rate that does not exceed the rate of population growth and inflation or 3.5%, whichever is lower. Limiting local use will limit property tax increases.
“Texas families must live within their means, and local governments must too,” the plan reads.
The governor also wants to give voters a chance to weigh in on ending the school district property tax on homeowners through a constitutional amendment. “The only way we’re able to afford it is because of the surplus that we generate every year,” Abbott recently told CBS News.
Texas voters approved an amendment in November that expands the state homestead exemption, which lowers the taxable value of most residential properties.
In Florida
Gov. Ron DeSantis, a Republican, called for a “bold” property tax exemption on the November ballot without providing details. His budget proposal, released in December, would set aside $300 million to fund districts as the property tax exemption moves forward.
Republicans in the Florida House of Representatives intend to advance a constitutional amendment that would eliminate non-school property taxes over a 10-year period. It was approved 11 to 5 in the Ways and Means Committee last week. The measure, if advanced by the legislature, would need the support of 60% of voters this fall to pass.
In Ohio
In December, Ohio Governor Mike DeWine signed five bills related to property taxes. The Republican governor acknowledged that the bills are “not perfect,” but said he hopes more changes will stop some of the property tax burdens residents face.
However, the property tax problem in Ohio is far from resolved. As the Ohio Capital Journal reports, state lawmakers are “deeply concerned” about a citizen-led popular initiative to end the property tax.
Loughhead says this is one of the most extreme proposals in the country. But it hasn’t happened before, he adds, noting that North Dakota had a similar ballot measure rejected in 2024.
If approved by voters, the Ohio legislature would be forced to restore billions of dollars in lost revenue: “That ballot measure would completely eliminate the property tax without raising any other taxes,” he said.
Georgia
House and Senate Republicans in Georgia are considering a number of property tax relief plans, including a Senate bill that would limit how much home values can rise.
House Speaker Jon Burns has proposed ending the state’s estate tax, but it’s a plan other top GOP officials in the state have not endorsed.
Kansas
In Kansas, a Senate committee recently advanced a proposed constitutional amendment that would cap property taxes at 3% of 2022 levels and limit future increases. Voters could reportedly get their say in August if the legislature first approves the amendment.
“We all know this constitutional amendment won’t lower property taxes, right?” Kansas Sen. Stephen Owens said during a tax committee meeting on January 21. “And I want to be clear – we’re putting that out there – [it] will not lower. [It] it may slow growth, but it will not slow it down.”
Wyoming
Several property tax abatement bills are being considered by the Wyoming Legislature. One bill would eliminate the property tax through a constitutional amendment as part of a plan that would also increase the sales and use tax by 2%, according to WyomingNews.com.
A separate bill would provide less relief, reducing the assessment rate for residential property.
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