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Has any US state successfully done away with property taxes?

Checked on November 11, 2025
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Executive Summary

No U.S. state has successfully eliminated property taxes; every state retains some form of property tax and several analyses confirm this as the standing fact. While a handful of states register very low effective rates or median bills and multiple states have active proposals to reduce or reform property taxation, none has entirely abolished the levy [1] [2] [3] [4].

1. Why the “abolish property tax” idea keeps resurfacing — and what the data show

Public discussion and ballot activity repeatedly bring forward proposals to eliminate property taxes, but comprehensive reviews and state-by-state analyses demonstrate that no state has actually completed abolition. Multiple recent assessments compile state comparisons and note that while some states like Hawaii and Louisiana show among the lowest effective tax rates, those figures reflect relative generosity or valuation practices rather than eradication of the tax itself [1] [5]. Analysts emphasize that property tax is a core revenue source for local governments; proposals to remove it raise immediate questions about how to replace funding for schools, police, fire and infrastructure—a consistent point across reviews [2] [6].

2. Where rates are low — and why “low” is not the same as “none”

Several sources list states with very low effective property tax rates or low median annual bills, and public lists often highlight roughly a dozen states toward the low end of the scale. Those rankings illustrate differences in assessment methods, exemptions, homestead credits, and local reliance on other revenue streams rather than true elimination of property taxation [1] [5]. Low rates frequently correlate with trade-offs such as reduced local spending, differing property valuation bases, or higher reliance on sales and excise taxes; these trade-offs explain why advocates sometimes promote abolition while fiscal analysts urge caution and alternative reforms [2] [4].

3. Legislative and ballot activity: proposals, not implemented repeals

In recent years several states have seen legislative or ballot initiatives that seek deep reductions or outright repeal of property taxes, including proposals reported from states like Michigan and North Dakota as well as other states exploring constitutional amendments or replacement tax schemes. These moves generate news coverage and advocacy, but the documented record shows these are proposals or campaigns, not completed statewide abolitions—analysts note potential for severe revenue shortfalls and debates over substitution mechanisms when these measures advance [7] [3]. Reporting on prospective repeal maps and bills underscores political momentum in places but stops short of a factual claim that any state has eliminated property taxes entirely [3] [8].

4. Relief programs and targeted reductions versus systemic elimination

States routinely offer targeted relief—credits, deductions, exemptions, abatements and programs aimed at seniors or low-income homeowners—creating the impression in some public-facing accounts that property taxes have been “done away with.” Close readings of program descriptions show these are relief mechanisms within an intact property tax system rather than abolition; New Jersey’s varied relief programs are offered as an example of substantial mitigation without removal of the foundational tax [9] [6]. Policy analysts advocate for caps, circuit-breakers, or consumption-tax swaps as more pragmatic reforms than full repeal, because the latter requires a credible, replacement revenue stream to maintain local services [4].

5. The bottom line: consensus across sources and key uncertainties ahead

All reviewed analyses converge on one clear factual conclusion: no U.S. state has completely done away with property taxes. The debate going forward centers on proposed ballot measures and legislative initiatives in a subset of states, which could change fiscal landscapes if enacted, but as of the latest documented reporting these remain proposals rather than realized eliminations [3] [7]. Observers should watch outcome details—how revenue replacements are structured, the impact on local budgets, and whether relief targets vulnerable populations—because these implementation choices determine whether calls to “abolish property tax” translate into sustainable policy or unintended service cuts [2] [6].

Want to dive deeper?
What are the primary revenue sources for US states besides property taxes?
Why do most US states rely on property taxes for funding?
Historical attempts to eliminate property taxes in US states
Pros and cons of abolishing property taxes at the state level
Current legislative proposals to end property taxes in Texas or other states