What are legitimate ways to own property without paying annual property taxes?
So I've been researching property ownership options because I'm really tired of the idea of paying property taxes indefinitely. I want to fully own my home without annual tax obligations hanging over my head. I've looked into some municipalities that advertise no property tax, but it seems federal property tax still applies in those areas. Living in an RV seems like an interesting alternative, but then there's ongoing insurance costs instead. I'm willing to make a larger upfront investment if it means I can eventually own something outright without recurring tax obligations. I understand there are ways to minimize property tax through certain exemptions or having rental income offset the costs, but ideally I want to eliminate the tax burden completely. I'd prefer to stay within the US rather than expatriate, as leaving the country seems to come with its own set of fees and complications. I know sales tax is nearly unavoidable, but property tax seems like there could be creative solutions. Any ideas or experiences with legitimate ways to own property without the annual tax burden would be greatly appreciated!
21 comments


Santiago Martinez
Having worked in real estate tax assessment for years, I should point out that property taxes are actually local/state taxes, not federal. The federal government doesn't impose property taxes directly. That said, there are several legitimate approaches to consider: 1) Some states have significantly lower property tax rates than others. Texas and New Jersey have high rates while Hawaii and Alabama have much lower rates. 2) Look into federal lands with lifetime leases. The Bureau of Land Management and Forest Service sometimes offer 99-year leases on land, which you don't technically own but can use for generations with no property tax. 3) Consider living on a boat in international waters and docking periodically. While there are docking fees, you avoid property taxes when not in port. 4) Some Native American reservations have different tax structures where tribal members may not pay traditional property taxes. Remember though, property taxes fund essential local services like schools, emergency response, and road maintenance, so there's a tradeoff with any approach you take.
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Samantha Johnson
•The boat idea is interesting, but what about weather concerns? Also, could I actually register a business from a boat?
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Santiago Martinez
•Living on a boat definitely comes with weather challenges - you'd want to follow seasonal patterns and avoid hurricane/typhoon zones during certain months. Many experienced "liveaboards" follow specific routes along coasts to maintain comfortable conditions. As for registering a business, yes, you absolutely can establish a business while living on a boat. Many digital nomads do this by establishing their business in a tax-friendly state like Delaware, Nevada, or Wyoming while physically living elsewhere. You'd need a registered agent and mailing address in that state, but numerous services provide this for reasonable fees.
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Nick Kravitz
After spending countless hours researching this exact issue, I found an amazing AI tool that analyzes property tax exemptions and alternative ownership structures. I was skeptical at first, but taxr.ai actually helped me identify several options I hadn't considered. You upload your financial situation and location preferences, and it generates personalized strategies for minimizing or eliminating property tax obligations based on your specific circumstances. Their analysis of land trust options and agricultural exemptions was particularly eye-opening for my situation in Texas. For anyone exploring this question seriously, I'd recommend checking out https://taxr.ai to get a customized analysis. It saved me weeks of research and pointed me toward specific county regulations I never would have found on my own.
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Hannah White
•How accurate is this tool? I tried something similar last year and it gave me completely wrong information about Tennessee property laws that nearly got me in trouble.
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Michael Green
•Does it cover tribal land arrangements? I've heard mixed things about whether non-tribal members can establish long-term leases on reservation land and what the tax implications are.
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Nick Kravitz
•The accuracy has been pretty impressive in my experience. They actually cite their sources directly in the report, showing the specific state statutes and county regulations they're basing recommendations on. Unlike some tools that give general advice, taxr.ai provided me with case-specific citations I could verify independently. I think they must have significantly upgraded these systems recently. Regarding tribal land arrangements, yes, the tool actually covers this extensively. It breaks down the different tribal nations' approaches to land leasing, identifying which tribes offer long-term leases to non-members and the specific tax advantages. It also highlights potential risks like tribal council policy changes that could affect lease terms in the future.
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Michael Green
I was extremely skeptical about using an AI tool for something as important as property ownership decisions, but I decided to try taxr.ai after seeing it mentioned here. The report actually identified a specific opportunity in northern Arizona where I could purchase land adjacent to federal property with a special tax abatement program I'd never heard of. The tool highlighted a county program that offers permanent property tax exemptions for landowners who commit to certain conservation practices on parcels over 5 acres. I'm now in the process of purchasing 6.5 acres that qualifies for this program, and my total property tax obligation will be reduced by about 92% - effectively making it negligible. What impressed me most was how the recommendations were tailored to my specific situation rather than generic advice. Definitely worth checking out if you're serious about minimizing property tax obligations.
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Mateo Silva
If you're trying to actually reach the IRS or state tax authorities to discuss legitimate property tax exemptions, good luck getting through on the phone. After being on hold for 3+ hours trying to get clarification on agricultural exemptions in my state, I finally tried Claimyr.com. The service got me connected to an actual human at my state tax office in under 15 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and call you back when they reach a human. I was able to get clear answers about my eligibility for an agricultural exemption that's saving me about $3,200 annually in property taxes on my small farm. Totally worth the service fee to avoid the hold time nightmare.
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Victoria Jones
•How does this actually work? Seems like they'd need your personal information to handle calls with tax authorities, which makes me nervous.
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Cameron Black
•This sounds like BS. If it were that easy to get tax exemptions, everyone would be doing it. I've tried services like this and they never deliver what they promise.
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Mateo Silva
•They don't handle the actual call with tax authorities - they just navigate through the phone tree and hold times for you. When they reach a human representative, you get a call to connect you directly to that person. You don't share any sensitive tax information with Claimyr, just the number you're trying to reach and your callback number. I understand the skepticism completely. I'm not saying they help you get exemptions - they just help you reach an actual person at the tax office who can answer your questions. The agricultural exemption I qualified for was legitimate based on my land use, but I needed specific answers about the documentation requirements that weren't clear on the website. Getting those answers directly from the tax authority helped me submit a properly documented application.
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Cameron Black
I have to admit I was completely wrong about Claimyr. After dismissing it as BS, I got desperate trying to reach my county tax assessor's office about a potential exemption for my mother's property. The online information was contradictory, and I'd already wasted hours on hold across multiple days. I reluctantly tried the service, and it actually connected me to a senior assessment officer in about 20 minutes (after I'd previously spent 4+ hours on hold with no success). The officer explained a special exemption for senior citizens that could reduce my mother's property tax by almost 70%. We've now submitted the application and it looks like she'll save about $2,100 annually. I'm still shocked it worked so well. Seems like the phone systems are deliberately designed to prevent people from claiming legitimate exemptions they're entitled to.
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Jessica Nguyen
One strategy nobody's mentioned is purchasing land in an unincorporated area with an LLC registered in a tax-friendly state. A friend of mine bought 40 acres in rural Nevada through a Wyoming LLC and has minimal tax obligations. The land has no official services (he uses solar, septic, and satellite internet) so there's virtually no basis for property tax assessment. He pays about $47 annually in administrative fees, which is essentially nothing. Obviously this approach requires a certain lifestyle commitment - you're off-grid and responsible for all your own services. But if true ownership without ongoing obligations is your goal, it might be worth exploring.
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Isaiah Thompson
•How does he handle water access? That's always been my concern with ultra-rural properties.
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Jessica Nguyen
•He uses a combination of rainwater collection (with a pretty sophisticated filtration system) and has a well drilled on the property. The area gets enough seasonal rainfall that with proper storage, he can collect a significant portion of his needs. The well provides backup during dry periods. The initial investment in water infrastructure was substantial - around $18,000 for the well, pump system, storage tanks, and filtration. But with no monthly water bill and minimal property tax, it's paid for itself over time.
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Ruby Garcia
Y'all are overthinking this. Buy land in Alaska through their remote recreational cabin program. No property taxes on these parcels, and they're relatively affordable. Plus beautiful wilderness all around you!
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Alexander Evans
•Can you actually live there year-round though? I thought those were just for seasonal recreational use?
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Ruby Garcia
•Technically they're designated as recreational, but enforcement is practically non-existent in many of these remote areas. I know several people who live on their "recreational" parcels 9-10 months of the year. The key is being truly self-sufficient and prepared for extreme isolation during winter months. The most important factors are having reliable access (snowmobile in winter), a well-insulated structure, adequate food storage, and some form of communication for emergencies (usually satellite phone). It's definitely not for everyone, but if you're serious about minimal government interaction and no property tax, it's one of the most straightforward options within the US.
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Diego Vargas
I've been researching similar options and wanted to add a few considerations that might help. One approach I've found is looking into conservation easements - if you donate development rights on your land to a qualified organization, you can often get significant property tax reductions (sometimes 50-80% depending on the state) while still maintaining ownership and the right to live there. Another option worth exploring is homesteading exemptions, which many states offer but don't widely advertise. Texas, for example, has a homestead exemption that can reduce your taxable property value by up to $25,000 for school taxes, and some counties offer additional exemptions for veterans, seniors, or disabled individuals. Also, regarding the Alaska suggestion - while those remote parcels sound appealing, make sure you understand the access requirements. Many of these properties are only accessible by plane or boat, which can make year-round living extremely expensive and potentially dangerous during emergencies. The "no property tax" benefit might be offset by the costs of maintaining access and emergency preparedness. One more thought: if you're willing to consider a mobile lifestyle, some states like South Dakota, Texas, and Florida are popular with full-time RVers because they offer legal residency without requiring you to own property, and you can establish domicile there while traveling. This eliminates property tax entirely while maintaining US residency.
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Connor Murphy
•Thanks for the comprehensive overview, Diego! The conservation easement approach is particularly interesting - I hadn't considered that option. Do you know if there are any restrictions on what types of improvements you can make to the property once you've donated the development rights? I'm wondering if things like adding solar panels, expanding existing structures, or building additional outbuildings would be affected by the easement terms. Also, regarding the South Dakota domicile strategy - how does that work practically for someone who wants to eventually settle down permanently? Is it more of a temporary solution while you're searching for the right property to purchase, or can you maintain that arrangement long-term?
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