Introduction
If you own property, are buying a home, or work in the real estate industry — 2026 is a year you cannot afford to ignore when it comes to property taxes.
Across the country, sweeping legislative reforms are reshaping how property taxes are calculated, capped, exempted, and enforced. From federal-level SALT deduction changes to state-specific homestead exemptions and major overhauls in Iowa, Ohio, Texas, and Florida — the property tax landscape in 2026 looks fundamentally different from what it did just two years ago.
For homebuyers, the changes could mean significant savings or unexpected obligations depending on the state and the property. For real estate investors, the reforms carry both opportunities and compliance risks. For lenders and title professionals, these changes directly affect how property tax searches are conducted and what they reveal before closing.
At GravityOne Solution, staying ahead of property tax law changes is not just about compliance — it's about ensuring that every client we serve has accurate, current, complete property tax information before they commit to a real estate transaction.
Here is a clear, comprehensive breakdown of the most significant property tax developments in 2026 — and what each one means for you.
1. Federal Level: The One Big Beautiful Bill Act (OBBBA) — SALT Deduction Raised to $40,000
One of the most impactful federal tax changes affecting property owners in 2026 stems from the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025.
What Changed
The cap on State and Local Tax (SALT) deductions has been raised from $10,000 to $40,000 for the tax years spanning 2026 through 2029.
What This Means for Property Owners
For homeowners in high-tax states — California, New York, New Jersey, Illinois, and others — the previous $10,000 SALT cap was a significant financial burden that effectively limited the deductibility of their state and local property taxes. The new $40,000 cap provides meaningful relief, particularly for middle and upper-middle income property owners in these states.
For real estate investors operating through pass-through entities such as LLCs, S-corps, or as sole proprietors, this change also opens up additional deductibility opportunities.
What to Watch
The $40,000 SALT cap is set for 2026 through 2029 — it is not permanent. Property owners and investors should plan their tax strategies with this window in mind and consult a tax professional to optimize the benefit while it is in effect.
2. Federal Level: Estate Tax Exemption Raised to $15 Million
For property owners with significant real estate holdings, the OBBBA also raised the federal estate, gift, and generation-skipping transfer tax exemption to $15 million per person.
What This Means
Larger real estate portfolios can now be transferred to heirs with significantly less federal estate tax exposure. For real estate investors and high-net-worth property owners, this change provides meaningful legacy planning opportunities.
Important Note
Stricter eligibility rules for certain estate planning strategies take effect in 2026. If you have a significant real estate estate, reviewing your current estate plan with a qualified professional is strongly advised.
3. Texas: $140,000 Homestead Exemption — Now in Full Effect
Texas property owners received significant relief following voter approval of Proposition 13 in November 2025, which increased the school-district homestead exemption from $100,000 to $140,000 — now in full effect for the 2026 tax year.
What Changed
The school-district homestead exemption increased from $100,000 to $140,000
HB 9 (business personal property tax exemption) increased from $2,500 to $125,000 — effective January 1, 2026
Additional school tax rate compression under HB 8 provides further relief
Average Texas homeowner savings: $1,762+ per year
What This Means for Real Estate Transactions
For buyers purchasing homestead properties in Texas, the expanded exemption directly reduces the ongoing property tax burden — a factor that affects affordability calculations, mortgage qualifying, and long-term investment return. Any Texas property tax search in 2026 must account for these updated exemption parameters to provide an accurate picture of the buyer's ongoing obligations.
4. Florida: Proposed Homestead Expansion on the November 2026 Ballot
Florida property taxes have been at the center of significant legislative activity in 2026 — though as of today, no changes to Florida property taxes are currently in effect.
What Happened
During a special legislative session in June 2026, the Florida Legislature passed a constitutional amendment — tied to Governor DeSantis's "Save Our Homes from Excessive Property Taxes" initiative — that would significantly expand Florida's homestead exemption and create a framework for phasing out most homestead property taxes over time.
Current Status
The amendment goes to Florida voters on November 3, 2026 and requires 60% approval to take effect. The proposed framework includes:
A $150,000 homestead exemption effective 2027 if approved
Rising to $250,000 in 2028 with future inflation adjustments
Residency requirements for homeowners moving to Florida after January 1, 2027
What This Means Right Now
For anyone buying property in Florida today — nothing has changed. All current property tax rules apply. However, the potential for significant future exemption expansion may affect how investors and buyers evaluate Florida property long-term.
At GravityOne Solution, our Florida property tax searches reflect the current, in-effect tax status of every property — not proposed changes — ensuring accurate, reliable information for every transaction closing today.
5. Ohio: Five Reform Bills in Effect as of March 2026
Ohio passed five companion property tax reform bills at the end of 2025, responding to widespread concerns about rising property values and tax burdens. Four of these bills took effect March 18, 2026, impacting property owners with their second half 2026 tax bills.
Key Ohio Changes for 2026
HB 186 — Caps property tax growth related to the 20-mill floor to inflation rates; applies retroactively to recent reappraisals; provides school district revenue backfill
Homestead Exemption — For Collection Year 2026, the Homestead Exemption exempts $28,000 of market value from taxation ($56,000 for enhanced exemption)
Non-Business Credit phase-out — Reduced to 7.5% in tax year 2026, declining to 0% by 2029
Owner-Occupancy Credit increase — Increased to 5.70% in tax year 2026, rising to 15.38% by 2029
HB 124 — Modifies how the Ohio Department of Taxation reviews county auditors' property valuations during reappraisals
What This Means for Ohio Real Estate Transactions
The phase-out of the Non-Business Credit combined with the Owner-Occupancy Credit increase creates a shifting tax landscape for Ohio property owners. Buyers and investors acquiring Ohio properties in 2026 need accurate current-year tax information that reflects these specific legislative changes.
6. Iowa: Sweeping Property Tax Overhaul — SF 2472
On May 3, 2026, the Iowa Legislature approved SF 2472 — one of the most significant overhauls of Iowa's property tax and local government finance system in state history.
Key Iowa Changes
A new framework fundamentally reshaping how county and city property tax levies are limited over time
A statewide backstop on rate-limited property tax levies beginning FY 2027
Beginning July 1, 2026: local governments may no longer issue bonds payable from property taxes for general operations
Changes to the burden of proof in property valuation appeals where large assessment increases occur without physical changes to the property
Major updates to Iowa's urban renewal and TIF (Tax Increment Financing) framework — the first significant changes in over 30 years
What This Means
The shift in valuation appeal burden of proof is particularly significant for property owners challenging assessments. The restrictions on local government bonding also affect how future property tax levies may be structured.
7. New York: Luxury and Second-Home Tax Proposals
New York lawmakers are advancing proposals that could materially increase property taxes on luxury residential real estate and second homes — particularly targeting non-resident owners of high-value properties.
What's Proposed
Shifting more of the tax burden to high-net-worth property owners who hold New York real estate without living there full time
Increased tax exposure for out-of-state and international investors holding New York real estate as passive assets
Updated assessment methodologies from both city and state agencies, reflecting recommendations from the Property Tax Reform Group's 2026 audit
What This Means for Investors
For non-resident owners and investors in New York real estate, the proposed changes could materially affect long-term holding costs and return calculations. While these are still proposals, the direction of New York's policy signals increased scrutiny of high-value and underused real estate going forward.
How GravityOne Solution Keeps You Protected in a Changing Property Tax Landscape
In a year of this much legislative activity, the accuracy and currency of your property tax information matters more than ever. An outdated tax search — one that doesn't reflect 2026 exemption updates, assessment methodology changes, or newly passed reform legislation — can lead to costly errors at closing.
At GravityOne Solution, our property tax research team stays current with legislative changes across all 30+ states we serve — ensuring that every property tax search we deliver reflects the most accurate, up-to-date information available.
Here's how we protect your transactions in 2026:
Current Legislation Awareness — Our team tracks property tax law changes at the federal, state, and county level across all jurisdictions we serve
Accurate Delinquent Tax Research — We identify all outstanding balances, penalties, and liens using current county records
Current Year Tax Verification — We verify the 2026 tax billing status — whether taxes have been paid, are due, or are subject to new exemptions — for every property
Exemption Status Confirmation — We verify whether applicable 2026 exemptions — homestead, senior, veteran, or business property — are correctly applied
Pre-Closing Tax Clearance — We confirm complete tax status before closing day so there are no surprises at the table
Multi-State Coverage — Whether your transaction is in Texas, Florida, Ohio, Iowa, New York, or any of 30+ additional states, we have it covered
Fast Turnaround — Most property tax searches completed within 24–48 hours
ISO 9001 Certified — Consistent quality and accuracy on every report
➡️ Learn More About GravityOne Property Tax Services
Conclusion
2026 is one of the most active years for property tax reform in recent memory. From the federal SALT deduction expansion to Texas's $140,000 homestead exemption, Iowa's sweeping legislative overhaul, Ohio's multi-bill reform package, Florida's pending ballot amendment, and New York's luxury tax proposals — every major real estate market in the country is navigating a shifting property tax landscape.
For homebuyers, sellers, investors, and lenders — the message is clear: what you don't know about a property's tax status can cost you significantly more than the cost of finding out.
At GravityOne Solution we make sure you have every piece of accurate, current property tax information you need — before you close, before you commit, and before it becomes a problem.