As Florida lawmakers consider Governor Ron DeSantis’ bold proposal to eliminate property taxes, residents across the state—homeowners, renters, agents, and landlords alike—are left wondering: what would this mean for them?
DeSantis is floating the idea of cutting out property taxes entirely, a dramatic shift that would require an overhaul of how local governments are funded.
In the short term, he’s proposed a $1,000 rebate for homeowners as part of a $5 billion plan currently awaiting legislative approval. Meanwhile, the Florida House and Senate have introduced alternate tax reform ideas, including trimming sales taxes. But DeSantis insists any tax relief should directly benefit Floridians—not tourists.
What Property Taxes Fund in Florida
Property taxes are a major funding source for essential local services: schools, police, fire departments, road maintenance, and more. In Florida, they account for about:
- 18% of county revenue
- 17% of municipal revenue
- 50% to 60% of school district funding
According to the Florida Policy Institute, local governments collected around $55 billion in property taxes in 2024. Eliminating this revenue would leave a massive gap—and no clear blueprint exists for replacing it, since no U.S. state has ever eliminated property taxes entirely.
What Could Replace Property Tax Revenue?
There’s no official replacement plan yet, but several ideas are on the table:
- Higher sales taxes
- Cuts to public spending
- Higher tourist-related taxes (hotels, attractions, dining)
- Special local assessments for specific services
- Increased real estate transaction fees
Suzanne Hollander, a professor at Florida International University, believes a combination of these measures would be necessary to balance the budget without extreme cuts. However, each funding idea would need to be passed by a supermajority in the Legislature, making implementation a major political challenge.
What Could This Mean for Homeowners and the Housing Market?
1. More Affordable Homeownership
Florida home prices have skyrocketed—rising 64% over five years, with property taxes up 47.5% in that time. Eliminating property taxes could help homeowners on fixed incomes, like retirees, by removing a recurring cost and creating more financial stability.
2. No Risk Of Losing Your Home Over Taxes
Right now, homeowners can lose their property if they fall behind on taxes. Eliminating property taxes would eliminate this risk altogether—a point DeSantis has strongly emphasized.
3. Rising Property Values
Lower property taxes tend to attract more buyers. Real estate experts point to states like Connecticut, where lower taxes contribute to higher home values compared to neighbors like Massachusetts. Florida could see similar increases, particularly if tax elimination draws in out-of-state and foreign buyers.
4. Potential Boost in Buyer Interest and Foreign Investment
Florida is already known for its low-tax appeal. If property taxes disappear, the state could become even more attractive to outside buyers, boosting demand—especially in oversupplied markets like Miami.
5. Possible Rent Decreases
Landlords typically factor property taxes into rent. Without that expense, there’s potential for rents to drop—though whether landlords pass those savings on is uncertain and will depend on market conditions.
6. Risk to Public Services
Sales and tourism taxes fluctuate with consumer behavior, meaning they may not provide stable funding. Without a reliable alternative, critical services like education, libraries, and infrastructure could face cuts.
7. Property Values Could Also Fall
If public services deteriorate, some experts believe affluent homeowners could leave for areas with better amenities, which could drag down property values.
8. You Might End Up Paying More in Other Taxes
To make up for lost revenue, Florida might have to double its current 6% sales tax. So while you wouldn’t pay property taxes, higher consumption taxes could result in paying more overall, depending on your spending habits.
Is This Really Going to Happen?
It’s too early to say. Eliminating property taxes would require a constitutional amendment, which means a 60% voter approval and a detailed plan to replace the lost funding. The Senate is commissioning a study to explore the feasibility of the move, with results expected this fall. If things move forward, voters could see the proposal on the 2026 ballot.
DeSantis, who is term-limited and cannot run again in 2026, has made this a centerpiece of his tax relief agenda. Whether it survives beyond his term will depend on how seriously lawmakers and voters take it.
Source: U.S. News & World Report
