10 States That Have Lowered Property Taxes in 2023

A number of state legislatures have sought to lower property taxes this year — and several actually succeeded.

Following are several states that have passed laws in 2023 that create, increase or expand eligibility for property tax relief.

Texas

Name of legislation: Proposition No. 4 (constitutional amendment)

When and by whom it was signed into law: Aug. 5, 2023, by Texas Gov. Greg Abbott. Voters then approved the amendment on Nov. 7, 2023.

How it affects property taxes: Proposition No. 4, which Abbott described as “the largest property tax cut in Texas history,” will bring about an estimated $18 billion in relief.

Perhaps most notably, it will increase the state’s school homestead exemption from $40,000 to $100,000, which essentially decreases the taxable value of a homeowner’s primary residence.

Pennsylvania

Name of legislation: HB 1100: An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in tax relief in cities of the first class, further providing for supplemental senior citizen tax reduction; and, in senior citizens property tax and rent rebate assistance, further providing for property tax and rent rebate and for filing of claim

When and by whom it was signed into law: Aug. 4, 2023, by Pennsylvania Gov. Josh Shapiro

How it affects property taxes: The law expands a couple of aspects of Pennsylvania’s Property Tax/Rent Rebate Program:

• Eligibility: Close to 175,000 additional seniors in the state will qualify, according to the governor, due to the income cap for renters and homeowners being raised to $45,000 per year. That cap was also indexed to inflation so that it will rise over time as costs of living increase.
• Rebate amount: Rebates will nearly double for many of the 400,000 seniors who already qualified for them. For example, the maximum rebate will increase from $650 to $1,000.

The governor’s office described the law as “the largest targeted tax break for Pennsylvania seniors in nearly two decades,” noting that the last time the Property Tax/Rent Rebate Program was expanded was in 2006.

Missouri

Name of legislation: SB 190: Modifies provisions relating to tax relief for seniors

When and by whom it was signed into law: July 6, 2023, by Missouri Gov. Mike Parson

How it affects property taxes: The legislation includes a provision that authorizes counties to create a property tax credit for homeowners who are eligible to receive Social Security retirement benefits.

According to the law, “The amount of the property tax credit shall be equal to the difference between the real property tax liability on the homestead in a given year minus the real property tax liability on such homestead in the year in which the taxpayer became [eligible for Social Security retirement benefits].”

Nebraska

Name of legislation: LB 243: Adopt the School District Property Tax Limitation Act, change levying authority and provide aid to community college areas, and change provisions relating to the Tax Equalization and Review Commission and property and income taxes

When and by whom it was signed into law: May 31, 2023, by Nebraska Gov. Jim Pillen

How it affects property taxes: The legislation expands the state’s property tax credits, limits school property tax increases and gets rid of nearly all community college property taxes.

Indiana

Name of legislation: HB 1499: An act to amend the Indiana Code concerning taxation

When and by whom it was signed into law: May 4, 2023, by Indiana Gov. Eric Holcomb

How it affects property taxes: This law, which is estimated to result in more than $100 million in property tax relief, expands a deduction that’s currently limited to 25% of assessed value.

The deduction will temporarily be worth as much as 40% and ultimately worth 35% of assessed value for homeowners with property valued at $600,000 or less. The deduction will temporarily be worth as much as 30% before returning to 25% of assessed value for homeowners with more expensive property

Iowa

Name of legislation: HF 718: An act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers […]

When and by whom it was signed into law: May 4, 2023, by Iowa Gov. Kim Reynolds

How it affects property taxes: This law, which will save residents an estimated $100 million, provides new homestead property tax exemptions for seniors and veterans and places caps on property taxes going forward.

North Dakota

Name of legislation: HB 1158: An act to create and enact two new sections to chapter 57-02 of the North Dakota Century Code, relating to a property tax credit for property used as a primary residence; to amend and reenact subsection 1 of section 57-02-08.1 and subsection 1 of section 57-38-30.3 of the North Dakota Century Code, relating to the homestead tax credit and income tax rates for individuals, estates, and trusts […]

When and by whom it was signed into law: April 27, 2023, by North Dakota Gov. Doug Burgum

How it affects property taxes: This law will provide $157 million in property tax relief, according to the state, in two ways:

• Allow homeowners to claim a property tax credit of up to $500 on their primary residence.
• Expand eligibility for and the maximum value of the state’s Homestead Property Tax Credit for homeowners age 65 and older.

Arkansas

Name of legislation: HB 1032: To increase the amount of the homestead property tax credit

When and by whom it was signed into law: March 21, 2023, by Arkansas Gov. Sarah Huckabee Sanders

How it affects property taxes: The single-page piece of legislation increases the state’s homestead property tax credit by $50 starting with the 2023 assessment year. The credit will be worth $425 rather than $375.

Montana

Name of legislation: HB 222: An act providing for a property tax rebate on a principal residence based on a certain amount of property taxes paid […]

When and by whom it was signed into law: March 13, 2023, by Montana Gov. Greg Gianforte

How it affects property taxes: This legislation — worth more than $280 million in tax relief, according to the governor — provides homeowners a property tax rebate of up to $500 for their primary home in 2023 and 2024. It also provides that the rebates are not subject to state income taxes.

Georgia

Name of legislation: HB 18: An Act to amend an Act making and providing appropriations for the State Fiscal Year beginning July 1, 2022, and ending June 30, 2023 […]

When and by whom it was signed into law: March 10, 2023, by Georgia Gov. Brian Kemp

How it affects property taxes: The legislation provides $950 million in property tax rebates. Taxpayers with homestead exemptions should receive about $500, on average, according to Gov. Brian Kemp.