Lawmakers Across the Country Are Scrambling to Cut Property Taxes. Here's Why
As 2026 legislative sessions opened across the country this month, lawmakers in at least 10 states introduced proposals to cut property taxes, while several governors pitched multibillion-dollar property tax cut plans.
It's a hot-button issue: Soaring home values have pushed property taxes to painful highs. Property taxes typically correspond to home assessments that take place every few years, and the home price boom from 2020 to 2022 resulted in higher property tax bills.
Property taxes fund schools, roads and police departments — and they're often the largest source of local government revenue. But politicians are now facing a national backlash to rising property taxes as the midterm elections loom, says Katherine Loughead, director of state tax projects at the Tax Foundation.
"Across the country, Americans are facing sharp property tax increases due to inflation and due to housing supply shortages," Loughead says. "State policymakers are facing a great deal of pressure to respond to taxpayers' affordability concerns, especially given the election year."
Enter the state-level proposals. It's too early to gauge how many of the state-level property tax cut efforts may be successful, but some of the plans appear to have very real momentum.
"Taxpayers and policymakers, to some extent, want both things. They want to keep increasing spending, but they also say they want to reduce property taxes," Loughead says. Even so, she adds, "A lot of the proposals we're seeing have legs and a very real possibility of getting adopted."
Bills will need to advance through state legislatures to become law. In some cases, like in Florida and Kansas, voters would have the final say in upcoming elections.
States considering property tax cuts in 2026
While the bulk of Americans' property taxes are levied by local governments, governors and state representatives are seeking to cap local property tax hikes and rein in local government spending. States can also provide relief with exemptions or property tax credits for specific groups, such as veterans or homeowners 65 and older.
Republicans are leading the charge to cut property taxes. For example, in her 2026 state of the state address, Iowa Gov. Kim Reynolds announced sweeping plans for property tax relief that would save residents an estimated $3 billion over six years. (Senate Republicans and House Republicans in Iowa have introduced property tax cut bills of their own.)
"Property taxes are rising faster than inflation, faster than paychecks, and faster than population growth," said Reynolds, whose plan would cap local government spending increases. "Over the last two years, they've gone up more than 10%. And that's not acceptable."
Some Democrats are also proposing laws to lower property taxes. Wisconsin Gov. Tony Evers is advancing a $1.3 billion property tax relief plan that would prevent tax increases and lower taxes for veterans and older residents, paid for with surplus funds.
In North Carolina, a bipartisan group of lawmakers is examining property tax relief options. Gov. Josh Stein, a Democrat, told WRAL he's "very open to the idea of trying to keep costs on certain vulnerable populations in check;" however, he's "wary" of stepping on the toes of local governments.
Let's zoom in on a few more key states:
Texas
Gov. Greg Abbott, a Republican, is making property tax reform his top priority as he runs for re-election for a record fourth term. (Money reached out to his campaign office for the specifics on his plan.)
The governor would limit local spending increases to a level not exceeding the rate of population growth plus inflation or 3.5%, whichever is lower. Capping local spending would 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 eliminating school district property taxes for homeowners via constitutional amendment. "The way we are able to pay for it is through the budget surplus that we run year after year after year," Abbott recently told CBS News.
Texas voters approved an amendment in November increasing the state's homestead exemption, which reduces the taxable value of many residential properties.
Florida
Gov. Ron DeSantis, a Republican, has called for "bold" property tax relief to be on the ballot in November without providing details. His budget proposal, released in December, would set aside $300 million to support counties as property tax relief moves forward.
Republicans in the Florida House of Representatives aim to advance a constitutional amendment that would phase out 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 support from 60% of voters this fall to pass.
Ohio
In December, Ohio Gov. Mike DeWine signed five bills related to property taxes. The Republican governor acknowledged the bills were "not perfect," but he said he hoped the bundle of reforms would stop some of the property tax spikes that residents were facing.
However, the property tax issue in Ohio is far from settled. As the Ohio Capital Journal reports, state lawmakers are "increasingly anxious" about a popular citizen-led initiative to abolish property taxes.
Loughead says this is one of the most extreme proposals in the country. But it's not without precedent, she adds, noting that North Dakota had a similar ballot measure that was rejected in 2024.
If approved by voters, the Ohio legislature would be forced to replace billions of dollars of lost revenue: "That ballot measure would abolish the property tax altogether without raising any other taxes," she says.
Georgia
House and Senate Republicans in Georgia are considering a handful of plans for property tax relief, including a Senate bill that would limit how much home valuations can rise.
House Speaker Jon Burns has proposed ending homestead property taxes in the state, but it's a plan that 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 appraisals for 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 that this constitutional amendment will not lower property tax, right?" Kansas Sen. Stephen Owens said during a Jan. 21 tax committee meeting. "And I want to be clear — we put that out there — [it] will not lower it. [It] may slow the growth, but it will not lower it."
Wyoming
Multiple property tax cut relief bills are under consideration by the Wyoming Legislature. One bill would eliminate property taxes by constitutional amendment as part of a plan that would also raise sales and use tax by 2%, according to WyomingNews.com.
A separate bill would offer narrower relief, reducing the taxable assessment rate for residential property.
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