Florida homeowners' much-needed property tax relief will have to wait.
The Florida House Ways and Means Committee unanimously approved a measure to permanently reduce the state sales tax from 6% to 5.25%. Other sales taxes for commercial rent, new mobile homes, coin-operated amusement machines, and electricity would also be cut by a 0.75% rate.
The legislation is estimated to cost the state $5 billion annually and is against Gov. Ron DeSantis’ preference to direct that tax relief to Florida homeowners.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Instead, the governor had proposed to deliver up to $1,000 in tax rebates to each homesteaded property in the Sunshine State. The property tax relief rebates would have been issued in December 2025 if the Florida Legislature granted authority.
According to the governor's office, the measure would have benefited over 5.1 million homeowners. That pitch appears left in the dust as legislators voted instead for a sales cut.
“Property taxes effectively require homeowners to pay rent to the government,” DeSantis said in a statement. “Constitutional protections for Florida homeowners require approval of the voters in 2026. In the meantime, Floridians need relief.
The governor noted that the sales tax cut would benefit tourists and part-time residents, and he would rather see foreigners subsidize tax cuts for Floridians. DeSantis also suggested better transparency and accountability on how taxes are spent to curb overspending.
“In Florida, we have this great luxury of being able to offload tax burden to non-Floridians because people visit, people invest here, people live here part-time who aren't residents.”
So, what kind of tax cut will Floridians get? Here are some proposals on the table.
Abolishing property taxes
DeSantis is fed up with property taxes and wants to do something about them.
The governor has expressed support for a constitutional amendment abolishing property taxes in Florida in 2026. However, the bold proposal has roused concerns from economists on the implications this measure would have for state revenue.
As reported by Kiplinger, in Florida, property taxes fund schools, infrastructure for roads and parks, and safety net programs — like firefighters, police departments, and public hospitals. This funding is essential given that the Sunshine State is a no-income state.
According to the Florida Policy Institute (FPI), Florida’s tax on real property makes up 18% of county revenue, 17% of municipal revenue, and up to 60% of school district revenue. They say that eliminating property taxes would be problematic.
“The tax has proved remarkably resilient and capable of being tailored to local interests,” the FPI analysts wrote. “It survives as the most important source of revenue in local governments primarily because of its stability.”
If Florida were to eliminate property taxes, the state would have to raise $43 billion (or $2,015 per person) to keep public services currently funded with property tax revenue afloat.
To get close to getting that funding back, the state would need to double its sales tax rate to 12%. That would generate roughly $40.2 billion annually — that’s only if consumers can keep up with higher costs.
Separately, costs of everyday goods are expected to rise due to President Donald Trump’s sweeping tariff policies on imported goods to the U.S.
“Increasing sales taxes, whether it is at the local level or statewide, is a regressive option that would ultimately make Florida’s tax code more inequitable,” wrote the FPI.
So far, Illinois, Pennsylvania, and Kansas have proposed similar measures to banish property taxes.
Property taxes in some popular areas in Florida have risen sharply in recent years, according to Redfin. In Tampa, the median household paid $2,797 in property tax in 2024, that's up 56.7% from 2019.
A $1,000 rebate check for homestead homeowners
Instead of providing $5 billion per year via a statewide sales cut, DeSantis would have preferred the Florida House to provide tax relief on property taxes.
Under DeSantis’ proposal, the cut would have resulted in a rebate averaging $1,000 for each homesteaded property in the state. The rebates would have also covered state-mandated school property taxes, which would guarantee school district funding while offering a tax break to homeowners.
The governor was counting on the legislature to approve the measure to get the rebates delivered to homeowners immediately, as soon as December 2025.
“We want to be as bold as we can be, but we also have a reality that we have to get these things passed by the legislature,” said DeSantis during a conference at the Florida Realtors Association this month. “You gotta convince them.”
State sales tax cut moves one step further
While Gov. DeSantis didn’t oppose the idea of a sales tax cut for the state of Florida, he noted that a property tax cut should be a priority for legislators to consider while weighing the state budget.
Florida lawmakers proposed $5 billion in tax cuts directed at slicing the state sales tax from 6% to 5.25%. Under the measure, a 0.75% sales tax reduction is also applicable for other goods and services, including:
- The rate of commercial rent would drop from 2% to 1.25%
- The rate on electricity would fall from 4.35% to 3.6%
- The sales rate of new mobile homes would be reduced from 3% to 2.25%
- The rate on coin-operated amusement machines would fall from 4% to 3.25%
The state's House of Ways and Means Committee advanced the bill with unanimous support on April 2, 2025.
“This will not be a temporary measure; a stunt or a tax holiday,” said Florida House Speaker Daniel Perez when he proposed the sales cut last week. “This will be a permanent, recurring tax reduction. This will be the largest state tax cut in the history of Florida.”
What was the governor saying before the move?
“People are not clamoring for sales tax relief, they are clamoring for property tax relief. There’s no property tax relief in that proposal. It also allows relief for foreigners, it allows relief for visitors and part-time residents,” DeSantis said. “I think the tax relief needs to be focused on Floridians. We need a Florida-first tax package.”
What’s on the Florida ballot in 2026
As reported by Kiplinger, Florida government officials have floated tax relief measures for state homeowners recently. However, some haven’t advanced in the Legislature.
- Sen. Blaise Ingoglia, R-Spring Hill, wants to increase the homestead exemption from its $50,000 assessed value cap to $75,000 for all levies, with annual inflation adjustments via (SB 1018).
- Rep. Ryan Chamberlin, R-Belleview, proposed a $100,000 exemption on all real properties in Florida via (HB 357).
For now, Florida homeowners will have to wait and see as lawmakers push forward measures to bring tax relief to constituents. It appears that a state sales tax could be on the table.
Still, homeowners looking for immediate tax relief from climbing tax bills can act now by implementing strategies to lower their property tax bills. For example, Florida has certain property tax benefits for persons age 65 or older, and Veterans in the state. Avoiding unnecessary home improvements can also help reduce your tax bill.
Related Content
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
How to Keep Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
New 2026 Tax Change Could Mean More for Your IRA and 401(k) SavingsRetirement Savings Here's how the new IRS inflation adjustments will increase the contribution limits for your 401(k) and IRA in the new year.
-
Capital Gains Tax Quiz: How Well Do You Really Know IRS Investment Tax Rules?Quiz Take our capital gains tax quiz to test your investment taxes knowledge. Learn about loss rules, holding periods, and tax incentives that could impact your savings.
-
6 Tax Reasons to Convert Your IRA to a Roth (and When You Shouldn't)Retirement Taxes Here’s how converting your traditional retirement account to a Roth IRA can boost your nest egg — but avoid these costly scenarios.
-
Could Tax Savings Make a 50-Year Mortgage Worth It?Buying a Home The 50-year mortgage proposal by Trump aims to address the housing affordability crisis with lower monthly mortgage payments. But what does that mean for your taxes?
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
Another State Bans Capital Gains Taxes: Will More Follow in 2026?Capital Gains A constitutional amendment blocking future taxes on realized and unrealized capital could raise interesting questions for other states.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
-
Emergency Tax Bill Ends $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.Tax Law Here’s how state tax conformity rules could immediately raise your income tax liability.
