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End Property Taxes? What It Would Actually Take—And Why It's So Unlikely

Articles
Feb 4, 2026

Politicians in Texas and elsewhere keep promising to eliminate property taxes. This post breaks down what would have to replace them—and why it's so unlikely—using data from the Tax Foundation and Census Bureau. Plus what you can do today to lower your bill.

End Property Taxes? What It Would Actually Take—And Why It's So Unlikely

Key Takeaways:

  • Property tax share: ~70% of local tax revenue nationwide
  • Texas: 84% of local tax revenue from property taxes; no state income tax
  • Replacement: Florida sales tax would need to roughly double (7% → ~15%); Michigan income tax nearly triple (4.25% → ~12%)
  • State backfill: Creates big winners and losers—many would pay more in the new tax
  • Do now: Protest or appeal an over-assessment before your deadline
  • Politicians in Texas and elsewhere keep promising to eliminate property taxes. Nobody's telling you the other half of the story: what would have to replace them, and who would pay.

    Property taxes fund the things that make your neighborhood work—schools, roads, police, fire, libraries. State and local governments have built their budgets around that revenue for decades. So when someone says "we'll end property taxes," the real question isn't whether you'd like to stop writing that check. It's what would have to replace it, and whether you'd actually pay less—or just pay differently, and often more.

    Here's what the data and the experts say about ending property taxes: what it would take, why it's so unlikely to happen, and what you can do today to lower your bill without waiting for a political miracle.

    The Movement: Who's Talking About Ending Property Taxes?

    Calls to cut or eliminate property taxes aren't new, but they've gotten louder. Rising home values have pushed property tax bills up even when tax rates haven't changed—and that's fueled a property tax revolt in several states.

    States where elimination or radical reduction has been on the table:

    • Texas: Lt. Gov. Dan Patrick has repeatedly pushed to eliminate school property taxes entirely—funded by increasing the state

    Paying Too Much in Property Taxes?

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    FAQs

    Can property taxes be eliminated?

    In theory, yes—if another tax (or taxes) is raised enough to replace the revenue. In practice, that means very large increases in sales tax, income tax, or both, and big shifts in who pays. Most serious analyses conclude there's "no good way" to pay for full repeal without those trade-offs.

    Why can't we just end property taxes?

    Because they fund about 70% of local tax revenue—schools, police, fire, roads, and more. That spending doesn't go away; it would have to be paid for by another tax. Replacing property taxes with sales or income tax would require doubling or more of those rates in many states.

    What would replace property taxes in Texas?

    Texas has no state income tax and already relies heavily on sales tax. Replacing property taxes would likely require a large increase in sales tax (and possibly other state taxes) or introducing an income tax—both politically very difficult.

    Do other states want to end property taxes?

    Yes. North Dakota, Nebraska, Wyoming, Texas, Florida, Georgia, Iowa, Kansas, Montana, and others have seen serious proposals to cut or eliminate property taxes. So far, full elimination has not been adopted; the replacement revenue and distribution problems are major obstacles.

    What can I do to lower my property taxes now?

    Protest (Texas) or appeal (California) if your assessed value is too high. Deadlines apply—e.g. May 15 in Texas. Check if you're over-assessed.

    Ryder Meehan
    Posted by:

    Ryder Meehan

    Ryder Meehan is the Co-Founder of TaxDrop and a Licensed Property Tax Protest Consultant