{"id":742,"date":"2026-05-17T15:16:21","date_gmt":"2026-05-17T15:16:21","guid":{"rendered":"https:\/\/blog-origin.mvocostseg.com\/blog\/?p=742"},"modified":"2026-07-27T10:13:09","modified_gmt":"2026-07-27T10:13:09","slug":"abolish-property-tax-rental-owners","status":"publish","type":"post","link":"https:\/\/mvocostseg.com\/blog\/abolish-property-tax-rental-owners\/","title":{"rendered":"Will Any State Ever Abolish Property Taxes? What It Would Mean For Rental Property Owners"},"content":{"rendered":"\n<div style=\"height:20px;\"><\/div>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/blog-origin.mvocostseg.com\/blog\/wp-content\/uploads\/2026\/07\/Property-Tax-Reform-Impact-On-Rental-Owners-1024x576.png\" alt=\"Property Tax Reform Impact On Rental Owners\" class=\"wp-image-743\" srcset=\"https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/07\/Property-Tax-Reform-Impact-On-Rental-Owners-1024x576.png 1024w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/07\/Property-Tax-Reform-Impact-On-Rental-Owners-300x169.png 300w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/07\/Property-Tax-Reform-Impact-On-Rental-Owners-768x432.png 768w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/07\/Property-Tax-Reform-Impact-On-Rental-Owners-1536x864.png 1536w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/07\/Property-Tax-Reform-Impact-On-Rental-Owners.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No State Has Done It:<\/strong> No U.S. state has fully abolished property taxes, and the most advanced efforts focus on homesteaded primary residences, not rentals.<\/li>\n\n\n\n<li><strong>Rentals Would Likely Be Left Out:<\/strong> Current proposals center on owner-occupied homes, which means investment properties would probably keep paying even where relief passes.<\/li>\n\n\n\n<li><strong>Cost Segregation Connection:<\/strong> Regardless of what happens to property taxes, federal depreciation through cost segregation remains the most reliable tax lever for investors.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<p>Every so often, a proposal to abolish property taxes grabs headlines, and for property owners watching their bills climb, the idea is understandably appealing. But there is a wide gap between political momentum and fiscal reality, and an even wider gap between relief for homeowners and relief for rental investors. Knowing where things actually stand helps you plan rather than wait.<\/p>\n\n\n\n<p>At MVO Cost Segregation, we work with real estate investors across all 50 states to reduce their federal tax burden through engineering-based cost segregation studies. Our founder Andrew spent over a decade at KPMG and personally reviews every report we deliver. Our studies carry a 100% IRS acceptance rate.<\/p>\n\n\n\n<p>In this piece, we will discuss whether any state is likely to abolish property taxes, what it would mean for rental owners specifically, and why your federal strategy matters regardless of the outcome.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Get Your Free Custom Proposal<\/h2>\n\n\n\n<script src=\"https:\/\/js.hsforms.net\/forms\/embed\/49432856.js\" defer><\/script>\n<div class=\"hs-form-frame\" data-region=\"na1\" data-form-id=\"cb28b1d8-01e4-453e-b554-52571f07c1be\" data-portal-id=\"49432856\"><\/div>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Where The Effort To Abolish Property Taxes Actually Stands<\/strong><\/h2>\n\n\n\n<p>The debate is real and active, but no state has come close to full elimination. Understanding the current landscape separates the headlines from what is actually on the table.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>No State Has Abolished Property Taxes<\/strong><\/h3>\n\n\n\n<p>To date, no U.S. state has fully eliminated property taxes. Some have expanded exemptions or capped how fast assessed values can rise, but the core system remains in place everywhere because it funds essential local services.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Florida Is The Furthest Along, And It Stalled<\/strong><\/h3>\n\n\n\n<p>Florida has pushed the most aggressive recent effort. A proposed constitutional amendment to phase out non-school property taxes on homesteaded properties passed the Florida House in early 2026 but died in the Senate before the regular session ended. A summer special session may revisit it, and any amendment would still require voter approval on the 2026 ballot.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Funding Problem Is The Real Barrier<\/strong><\/h3>\n\n\n\n<p>Property taxes fund schools, emergency services, and local government. Replacing that revenue without a new source is the obstacle every proposal runs into, which is why reform tends to win out over outright abolition.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/tfimw.share.hsforms.com\/2yyix2AHkRT61VFJXHwfBvg\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/blog-origin.mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Take-Control-Of-Your-Tax-Savings-With-CPA-Friendly-Cost-Segregation-Reports-And-Tools-1024x576.png\" alt=\"Take Control Of Your Tax Savings With CPA-Friendly Cost Segregation Reports And Tools\" class=\"wp-image-274\" srcset=\"https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Take-Control-Of-Your-Tax-Savings-With-CPA-Friendly-Cost-Segregation-Reports-And-Tools-1024x576.png 1024w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Take-Control-Of-Your-Tax-Savings-With-CPA-Friendly-Cost-Segregation-Reports-And-Tools-300x169.png 300w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Take-Control-Of-Your-Tax-Savings-With-CPA-Friendly-Cost-Segregation-Reports-And-Tools-768x432.png 768w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Take-Control-Of-Your-Tax-Savings-With-CPA-Friendly-Cost-Segregation-Reports-And-Tools-1536x864.png 1536w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Take-Control-Of-Your-Tax-Savings-With-CPA-Friendly-Cost-Segregation-Reports-And-Tools.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Rental Owners Would Likely Be Left Out<\/strong><\/h2>\n\n\n\n<p>Here is the part that matters most for investors and rarely makes the headlines. The proposals gaining traction are built around primary residences, not investment properties.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Relief Is Tied To The Homestead<\/strong><\/h3>\n\n\n\n<p>The Florida effort, like most serious proposals, targets homesteaded properties, meaning owner-occupied primary residences. A rental held for income does not qualify as a homestead, so even if such a measure passed, your investment property would likely keep paying property tax.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>School Taxes Often Remain Anyway<\/strong><\/h3>\n\n\n\n<p>Even the boldest proposals tend to preserve school district taxes, which make up a large share of any bill. So even a homeowner benefiting from elimination would not see the entire bill disappear, and a rental owner would see little to none of that relief.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Investors Cannot Bank On Local Relief<\/strong><\/h3>\n\n\n\n<p>Given that current proposals exclude rentals and that full abolition remains unlikely anywhere, investors who are counting on a property tax repeal to improve their returns are planning around something that may never arrive.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/tfimw.share.hsforms.com\/2yyix2AHkRT61VFJXHwfBvg\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/blog-origin.mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Get-A-Custom-Proposal-With-Reliable-Audit-Ready-Results-Backed-By-Licensed-Engineers-1024x576.png\" alt=\"Get A Custom Proposal With Reliable, Audit-Ready Results Backed By Licensed Engineers\" class=\"wp-image-272\" srcset=\"https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Get-A-Custom-Proposal-With-Reliable-Audit-Ready-Results-Backed-By-Licensed-Engineers-1024x576.png 1024w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Get-A-Custom-Proposal-With-Reliable-Audit-Ready-Results-Backed-By-Licensed-Engineers-300x169.png 300w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Get-A-Custom-Proposal-With-Reliable-Audit-Ready-Results-Backed-By-Licensed-Engineers-768x432.png 768w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Get-A-Custom-Proposal-With-Reliable-Audit-Ready-Results-Backed-By-Licensed-Engineers-1536x864.png 1536w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Get-A-Custom-Proposal-With-Reliable-Audit-Ready-Results-Backed-By-Licensed-Engineers.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Tax Lever Investors Control No Matter What<\/strong><\/h2>\n\n\n\n<p>Whether property taxes are reformed, abolished, or left exactly as they are, one thing does not change: the federal income tax on your rental income. That is the lever investors can actually pull today.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cost Segregation Works Regardless Of Local Policy<\/strong><\/h3>\n\n\n\n<p>A cost segregation study reduces your federal taxable income by accelerating depreciation, and it does this no matter what any state legislature decides about property taxes. It is a federal strategy, insulated from the local debate entirely.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>It Could Matter Even More In A No-Property-Tax World<\/strong><\/h3>\n\n\n\n<p>There is an irony worth noting. Property taxes are currently a deductible expense against rental income. If a state ever did eliminate them, that deduction would disappear too, making federal strategies like cost segregation even more important for keeping taxable income down. A cost segregation study identifies components that qualify for shorter recovery periods of 5, 7, or 15 years, and paired with bonus depreciation, a significant share can be deducted in the first year. Our clients typically see first-year returns of 10x or more on the cost of their study.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/tfimw.share.hsforms.com\/2yyix2AHkRT61VFJXHwfBvg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/blog-origin.mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Gain-Professional-Cost-Seg-Analysis-From-Qualified-Engineers-1024x576.png\" alt=\"Gain Professional Cost Seg Analysis From Qualified Engineers\" class=\"wp-image-264\" srcset=\"https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Gain-Professional-Cost-Seg-Analysis-From-Qualified-Engineers-1024x576.png 1024w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Gain-Professional-Cost-Seg-Analysis-From-Qualified-Engineers-300x169.png 300w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Gain-Professional-Cost-Seg-Analysis-From-Qualified-Engineers-768x432.png 768w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Gain-Professional-Cost-Seg-Analysis-From-Qualified-Engineers-1536x864.png 1536w, https:\/\/mvocostseg.com\/blog\/wp-content\/uploads\/2026\/05\/Gain-Professional-Cost-Seg-Analysis-From-Qualified-Engineers.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Final Thoughts<\/strong><\/h2>\n\n\n\n<p>Will any state ever abolish property taxes? Not anytime soon, and not in a way that is likely to help rental owners. The most advanced effort, in Florida, stalled in 2026, targets only homesteaded primary residences, and would still preserve school taxes even if it passed. For investors, local relief is a long shot at best.<\/p>\n\n\n\n<p>What you can control is the federal side. Cost segregation reduces your taxable income regardless of what happens to property taxes, and it would only grow more valuable if local deductions ever went away. With over 3,000 studies completed across all 50 states and a 100% IRS acceptance rate, we are ready to help you build a tax strategy that does not depend on legislation that may never come.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions About Whether States Will Abolish Property Taxes<\/strong><\/h2>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Has any state abolished property taxes?<\/strong><\/h3>\n\n\n\n<p>No. No U.S. state has fully eliminated property taxes. Some have expanded exemptions or capped assessment increases, but the core system remains in place because it funds essential local services.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Which state is closest to abolishing property taxes?<\/strong><\/h3>\n\n\n\n<p>Florida has pushed the most aggressive recent effort. A proposal to phase out non-school property taxes on homesteaded properties passed the Florida House in early 2026 but died in the Senate, with a possible special session to revisit it.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Would abolishing property taxes help rental owners?<\/strong><\/h3>\n\n\n\n<p>Probably not much. Current proposals target homesteaded primary residences, not investment properties. A rental held for income would likely keep paying even where relief passes.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Do these proposals eliminate the entire tax bill?<\/strong><\/h3>\n\n\n\n<p>Generally no. Even the boldest proposals tend to preserve school district taxes, which make up a large portion of a bill, so even benefiting homeowners would not see the whole bill disappear.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Would losing the property tax deduction hurt investors?<\/strong><\/h3>\n\n\n\n<p>It could. Property taxes are currently deductible against rental income. If they were eliminated, that deduction would disappear, making federal strategies like cost segregation even more valuable.<\/p>\n\n\n\n<div style=\"height:10px;\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What can rental owners do regardless of property tax legislation?<\/strong><\/h3>\n\n\n\n<p>Focus on the federal side. Cost segregation reduces taxable income through accelerated depreciation no matter what any state decides about property taxes, making it a reliable lever investors fully control.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will any state abolish property taxes, and what would it mean for rentals? See the facts and how MVO Cost Segregation helps you save no matter what occurs.<\/p>\n","protected":false},"author":3,"featured_media":743,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/posts\/742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/comments?post=742"}],"version-history":[{"count":2,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/posts\/742\/revisions"}],"predecessor-version":[{"id":825,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/posts\/742\/revisions\/825"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/media\/743"}],"wp:attachment":[{"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/media?parent=742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/categories?post=742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mvocostseg.com\/blog\/wp-json\/wp\/v2\/tags?post=742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}