States Move to Eliminate Homeowner Property Taxes Amid Warnings of Revenue Crisis
Austin, Thursday, 29 January 2026.
Legislators in Georgia, Florida, and Texas are advancing plans to abolish homeowner property taxes to combat soaring valuations, risking billions in lost revenue and threatening essential local services.
A Legislative Scramble for Tax Abolition
As of Thursday, 29 January 2026, a coordinated legislative movement to completely eliminate homeowner property taxes is accelerating across the United States. Driven by market data indicating that property values have risen nearly 27 percent faster than inflation in recent years, lawmakers are responding to growing constituent resentment over soaring tax bills [1][2]. While the political momentum for relief is palpable, fiscal analysts warn that erasing this primary revenue source—which funds schools, roads, and police—could destabilize state budgets. Adam Langley of the Lincoln Institute of Land Policy cautions that total elimination would be “very difficult” and likely “undesirable” for most localities due to the sheer volume of revenue that must be replaced [1].
Southern States Lead the Charge
The most significant recent development occurred on Wednesday, 28 January 2026, when Georgia House Republicans unveiled a comprehensive plan to phase out homeowner property taxes entirely by 2032 [1]. Georgia House Speaker Jon Burns framed the initiative as a moral imperative, stating that citizens should not face the loss of their homes due to an inability to pay “rent to the government” [1]. This proposal involves a gradual shift in the tax burden rather than an immediate cessation, aiming to mitigate the shock to local coffers [1].
Resource-Backed Relief
North Dakota offers a distinct model for this policy shift, leveraging natural resource wealth to offset tax cuts. Governor Kelly Armstrong is utilizing earnings from the state’s $13.4 billion oil tax savings account to facilitate the elimination of homeowner property taxes [1]. According to state officials, a tax credit program implemented in December 2025 has already eliminated liabilities for 50,000 households and reduced bills for nearly 100,000 others, costing the state $400 million in subsidies for the 2025 and 2026 tax years [1]. Governor Armstrong asserts that the program is scalable, aiming to bring property taxes to zero for the vast majority of homeowners [1].
Fiscal Fallout and Service Cuts
The potential consequences of these aggressive tax reforms are already manifesting in states like Ohio, serving as a warning for those pursuing total abolition. In Hamilton City Schools, a district in Butler County, Ohio, officials have declared a fiscal emergency attributed to changes in the state funding formula and property tax reforms passed in December 2025 [4]. Superintendent Andrea Blevins confirmed the district is operating at an approximate $5 million deficit for the current school year [4].