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A Canadian who invests in single-family homes recently told me that the U.S. state of Indiana charges double real-estate taxes if the home is not owner-occupied. As a Californian who owns rental property in Arizona, I am all in favor of this, provided that means my primary residence would be taxed less.

Real-estate taxes on your primary residence is the equivalent of paying rent. It has become so high in some states (e.g. Oregon) that it discourages home ownership.



Oregon's real estate taxes are modeled after California's. They are capped at 3% increase per year (in taxable value, increases in individual levies can lead to more than a 3% increase year over year).

My house is about 10 years old and I pay ~1.5% of it's resale value in taxes annually. Granted, that's much higher than my neighbor who occupies his childhood home built in the 1960s but it's hardly outrageous compared to other parts of the country.

One difference in OR, in addition to selling a home, a significant improvement (ie adding an additional bedroom) can lead to a resetting of the taxable value at current market value.


California does give a homeowners exemption on property tax; but it's in the constitution at $7000 of value, so it's only a $70/year discount, and there's a lot of rules to follow if the legislature wants to change it, it looks like they have to also increase the renters credit, and be revenue neutral for local governments; I don't expect it's likely to be increased by legislative action.


Most jurisdictions have a "homestead exemption" that reduces property taxes on owner-occupied property (though not to half, as this policy does).


Indiana also put a 2% cap on property tax into the constitution. Indy has some really nice Gilded Age mansions under $2 mil.


Renters pay property taxes, too - indirectly through their landlord.


This may actually not be true, if rent prices must be competitive.

Georgist taxes have the interesting feature that land rents taxation ( not rack rent, which is what you pay the landlord ) cannot be passed on.




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