Boomers are reaching a boiling point over their property taxes.
Although property tax rates vary between jurisdictions, they’ve been climbing following the 2020 housing boom. Median home prices in America jumped 33% between Q1 2020 and Q1 2025, according to Federal Reserve data, and total property taxes grew from $10.5 billion in 2020 to $12.9 billion in 2025.
Because many older homeowners live on fixed incomes, it’s understandable why more baby boomers are calling for the abolition of property taxes.
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"Representatives aren’t even willing to talk to us about the problem," Brian Massie with Citizens for Property Tax Reform in Ohio, recently told Business Insider (1).
"Then we’re going to have to starve the beast, and that’s the expression we use — starving the beast. We said, ‘We’re going to get a citizens-led initiative to abolish all Ohio property taxes.’"
But is getting rid of property taxes the wisest move? And what would such a dramatic change mean for local funding and younger demographics?
How property tax divides and defines generations
No matter the tax, nobody likes paying it. But if there is a positive feature of property taxes, it’s that they’re easy to understand.
Aside from nuances in certain locales, you just have to multiply the current tax rate by the current assessed value of property.
This model wasn’t such a big deal when boomers entered the housing market. Not only were home prices cheaper, older boomers were coming into their prime earning years when prices did start to rise after the 1970s.
But today’s environment is putting a strain on the straightforward property tax model. Skyrocketing home prices, inflation and fixed incomes create the perfect storm for an uptick in frustration.
And sure, the increase in home values looks great on paper, but real estate is illiquid. Boomers can only realize their gains if they choose to sell. In the meantime, they’re strapped with higher expenses on top of the higher cost of living.
While these grievances are understandable, property taxes remain the lifeblood of the local American economy. According to the Tax Foundation (2), in 2022, property taxes, which help fund schools, roads, police stations, fire departments and other essential services, comprised more than a quarter (22.7%) of total tax collected at the state or local level — more than any other source.
If homeowners weren’t to pay for these services, via taxes, who would?
Municipalities would have to replace this revenue in ways that can hurt younger generations, including higher sales and income taxes or simply reducing services.
As Jared Walczak, vice-president of state projects at the Tax Foundation recently noted in an interview with Business Insider (1), “property taxes generate about 70% of all local tax revenue nationwide” and “in many states, it’s 80% or 90%, or even higher,” adding that “replacing the property tax is virtually impossible in most states, at least without causing substantial economic harm.”
Millennials and Gen Zers already struggle to break into the housing market. According to a recent report by National Association of Realtors (3), the average age for a first-time homebuyer is now at its highest ever: 40. All the while, younger buyers are also dealing with a competitive job market and growing student loan debt.
There’s no knowing how this property tax debate will play out, but one thing’s for sure: It’s bringing simmering issues over housing inequality to the surface.
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How to navigate property taxes without panic
There’s no telling if, when, or how property taxes will change, but they probably aren’t disappearing overnight. So, instead of betting that these taxes will go away, it’s far wiser for homeowners or homebuyers to factor them into their financial decisions.
For boomers, that means calculating the latest property tax using local rates on their county assessor’s office or tax collector’s website and their home’s current value. Consider using a money management app to factor in this expense and figure out creative ways to reallocate funds.
But that doesn’t mean boomers are stuck with whatever their property tax rates are. There are possible discounts that can help seniors or long-time homeowners.
For instance, consider exploring homestead exemptions (4) or tax deferral programs (5), both of which can offer temporary relief. If someone thinks their home’s value is overestimated, they can schedule a property reassessment to potentially bring down their tax.
Although homeowners can’t change the property tax rate, it’s possible to file a petition on the assessed value of their home with a local Board of Equalization or Board of Assessment Appeals. The more evidence you have — such as recent sale prices of similar homes, photos of condition issues, and a private appraisal — the better chance of lowering your assessed value and the total amount paid in property tax.
Although it may be emotionally “taxing,” it’s also possible to downsize or move to a lower-tax area if better budgeting isn’t enough.
For millennials and Gen Zers entering the housing market, don’t overlook these property taxes when considering mortgages. A home with a seemingly low purchase price can become more costly if taxes are high, so run some calculations before moving forward.
Also, remember that property taxes are tied to community services. There may be cases where a slightly higher tax rate may be worth the tradeoff if homebuyers feel the area has all the amenities they want.
Keep in mind that newer neighborhoods can carry higher property taxes if they include special purpose districts (6) to fund new infrastructure such as hospitals, colleges and libraries, and have higher assessed home values. So, always check the total tax rate and compare it with nearby established areas before buying.
Despite the ongoing debates over property taxes, they’re still the engine that keeps so much of America running. So, for now, don’t forget to make property taxes part of the overall financial picture.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Business Insider (1); Tax Foundation (2), (5); National Association of Realtors (3), (4); Texas Real Estate Research Center (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.