Property Taxes

3 Pages Posted: 19 Aug 2019 Last revised: 30 Sep 2020

See all articles by Eugene F. Fama

Eugene F. Fama

University of Chicago - Finance

Date Written: September 26, 2020


A common claim is that home ownership is a good deal because the housing services it provides are untaxed. My simple point is that the property tax paid by a homeowner is in effect an annual tax on housing services. It is an income tax when the homeowner rents the house to somebody else. It’s a consumption tax when the homeowner lives in the house and so consumes its services.

Suggested Citation

Fama, Eugene F., Property Taxes (September 26, 2020). Fama-Miller Working Paper, Forthcoming, Available at SSRN: or

Eugene F. Fama (Contact Author)

University of Chicago - Finance ( email )

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Chicago, IL 60637
United States
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