9 American cities offering a rare break from property taxes

Why skipping city property taxes matters

Property taxes are often one of the highest ongoing costs of homeownership, rising steadily year after year. In a small number of U.S. cities, the city itself does not collect property taxes at all.

While residents may still owe county or school taxes, removing the municipal layer can significantly reduce annual expenses. Over time, this difference can translate into thousands of dollars saved and more predictable household budgeting.

Sedona trades property taxes for tourism revenue

Sedona does not levy a city property tax. Instead, it funds local services largely through transaction privilege taxes, including a city sales tax and a bed tax tied to tourism.

Homeowners still pay county and school district property taxes, but there is no municipal property tax line item from Sedona itself, which can lower the overall bill for many residents.

Peachtree Corners removes the city layer from tax bills

Peachtree Corners operates with a zero millage rate, meaning the city does not levy a municipal property tax. Residents still pay Gwinnett County and school taxes, but the city portion stays at zero.

The city funds operations through other local revenues such as fees and taxes not based on property value, helping limit that annual housing cost for many households.

Apache Junction makes its zero city tax easy to spot

Apache Junction does not levy a city property tax. The town’s primary property tax levy is set at zero, so homeowners won’t see a municipal ad valorem charge from Apache Junction itself.

Residents still owe county and school property taxes, and they pay local sales taxes and fees that support municipal operations. The key savings is the missing city levy.

Ballwin does not tax homes at the city level

Ballwin has repeatedly set its city real estate tax rate at 0%, meaning the city does not levy a municipal property tax on homes. Homeowners still pay the other property taxes on their bill, such as school and county levies.

Ballwin relies on other revenue sources, including local sales and utility taxes, to fund services without a city property tax.

Stafford proudly markets its no property tax status

Stafford is one of the most well-known examples of a city with no city property taxes, and it actively promotes that identity. Homeowners still owe property taxes to Fort Bend County, but skipping the municipal portion creates noticeable savings.

The city relies on sales tax revenue and business development to fund services. This long-running model has helped Stafford attract both residents and employers.

Oak Brook lets retail shoulder the burden

Oak Brook lists its village property tax levy as $0, so the municipality itself does not levy a property tax. Local services are supported by other revenues, including sales tax shares and utility taxes.

Property owners in Oak Brook pay property taxes to other taxing bodies like school districts and counties, but the village portion remains zero year after year.

Gun Barrel City keeps municipal property taxes at zero

Gun Barrel City sets its current ad valorem tax rate at zero, so the city does not levy a municipal property tax. That does not mean residents are tax-free: county, school, and other district taxes still apply.

The city instead leans on other revenues, including local sales taxes, hotel occupancy taxes, and fees, to support services and citywide daily operations.

Fenton skips both real estate and personal property taxes

Fenton does not levy municipal real estate or personal property taxes. Property owners still pay St. Louis County and school district taxes, but there is no separate city property tax collected by Fenton.

The city’s profile materials describe this as a key feature of living and doing business there, with local services supported through other revenue sources instead each year.

Maynardville offers low taxes in a suburban setting near a larger city

Maynardville does not levy a city property tax. Financial reports note the city’s major revenues come from local option sales tax and other shared taxes rather than property levies.

Residents still pay county and school district property taxes, but the municipal layer is absent. For homeowners, that can reduce the total property-tax bill compared with nearby cities that levy one.

How these cities replace missing property tax revenue

Cities with lower property tax rates often rely more heavily on alternative revenue sources such as sales taxes, business licensing fees, and service charges. This approach shifts some funding responsibility from property ownership to economic activity.

While it can benefit homeowners, it also makes city budgets more sensitive to changes in consumer spending.

What homeowners should consider before moving

A zero city property tax does not mean a zero tax bill. You may still owe county, school, and special district property taxes, plus fees for utilities or services.

Compare total rates carefully, exemptions, and what services the city actually provides. Also check local sales taxes, which can be higher in places that lean on consumer spending to fund operations.

For an example of how public funding and local taxes can surface in unexpected ways, there’s a closer look at a Kentucky attraction that has drawn plenty of attention.

Why these cities stand out today

Cities that forgo a municipal property tax are unusual because property taxes are a major part of U.S. state and local tax revenue.

Eliminating that stream usually requires other dependable money, such as strong retail sales taxes, utility taxes, franchise fees, or business activity. When those sources weaken, budgets can tighten, so the model is not easy to copy widely.

For a closer look at how communities weigh tax decisions and economic impact, there’s an interesting case unfolding among businesses in Colorado.

What do you think about American cities that are offering a break from paying taxes on properties? Please share your thoughts and drop a comment.

This slideshow was made with AI assistance and human editing.

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