Will Florida Property Tax Be Eliminated?
A new proposal is raising questions about revenue generation in the Sunshine State.
New tax reform proposals in Florida are causing debate. Last year, a bill sponsored by state House Rep. Ryan Chamberlin sought to study whether the Sunshine State could eliminate property taxes. And now, Florida Gov. Ron DeSantis seems to have a similar idea.
Data show that property taxes have been rising across the country. Over the last few years, the average tax on a single-family home in the U.S. was just under $4,000. State and local taxes continue to be among the highest tax bills people pay in the U.S. But, as in many states, property taxes in Florida are a primary source of funding for essential local government services and infrastructure.
In a message on X, formerly Twitter, Chamberlin wrote about his tax proposal: "It's Time - there's a better way. No more property taxes!”
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Meanwhile, Gov. Ron DeSantis recently expressed support for ending property taxes in the Sunshine State. Replying to someone on the social media platform X (formerly Twitter), DeSantis acknowledged that eliminating property taxes would involve amending the state's constitution.
Since Florida is a state without income tax, eliminating property taxes would also require alternative revenue sources. That revenue would likely come from increased sales taxes. So, the talk has generated some controversy.
Here’s what else you need to know.
Florida sales tax increase?
Chamberlin's bill, which essentially advocates for eliminating property taxes and replacing them with an expanded sales tax, passed its first committee vote in the Florida House last year but has since died in committee.
- A main concern with the proposal was that it could lead to a considerable increase in sales taxes in Florida.
- Opponents argue that shifting to higher taxes on goods and services could disproportionately affect specific consumers, particularly those with lower and middle incomes or who do not own property.
According to local reporting, some supporters believe abolishing Florida's property taxes could help promote affordable housing and increase property ownership. They contend that doing away with property tax would alleviate the financial burden on property owners and renters.
How much is Florida property tax?
Property taxes in Florida are determined by several factors, like the county and city where the property is located and its assessed value. Due to the absence of a state income tax, Florida's property tax rates are generally considered moderate compared to other states.
- On average, property owners in Florida can expect to pay between about 0.8% and 2.0% of their property's assessed value annually in property taxes.
- Actual property tax bills vary widely depending on the location and assessed value of the home.
- Under Save Our Homes (SOH), a property tax cap amendment to Florida's constitution, homestead property assessments can’t increase more than 3% from the previous assessment period. (The cap for non-homestead properties is 10%.)
Meanwhile, as Kiplinger has reported, Florida's current average sales tax rate of 7.02% is relatively moderate compared to other states. However, a $1.3 billion Florida tax relief bill signed by Gov. Ron DeSantis last year extended many of Florida’s numerous sales tax holidays. A new Florida sales tax holiday, which took place in January of 2024, was added. Fiscal concerns make it unclear whether those or other extended tax holidays will continue.
DeSantis property tax comments
Meanwhile, as mentioned, Gov. DeSantis recently expressed support for a major change in Florida's tax structure. Responding to a suggestion on the social media platform X, DeSantis endorsed abolishing Florida property taxes.
DeSantis acknowledged that such a sweeping change would require a constitutional amendment, which would require approval from 60% of Florida voters.
"We should put the boldest amendment on the ballot that has a chance of getting that 60%," he wrote.
However, the governor seemed willing to back such an initiative, characterizing taxing land as "the more oppressive and ineffective form of taxation."
The statements come after DeSantis released a 2025-2026 $115.6 billion budget proposal calling for an overhaul of property taxes.
One key aspect of the proposal involves changes to Florida's homestead exemption, with DeSantis telling reporters, "I think homestead deductions need to dramatically increase for people."
Note: Rep. Chamberlin has reportedly filed a new bill, HB 359, for the 2025 Legislative Session, proposing to exempt $100,000 of a property's value from tax.
Tax in Florida: What happens next?
The topic of taxes, revenue, and economic policy is complicated in many states, not just Florida. If a similar study is eventually approved by the legislature, it could provide information this year, to guide Florida property tax reform. In the meantime, Floridians face other challenges with property, including skyrocketing home insurance costs and major insurers like AAA and Farmers restricting or withdrawing coverage in the state.
It's also important to note that although some states have considered getting rid of property taxes (a similar proposal, AxMiTax, is circulating in Michigan, where homeowners face the highest property tax increase in 28 years, at 5%), no state has done so.
This story has been updated to provide information about the governor's recent comments on property taxes in Florida and the homestead exemption.
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