Property taxes have long been the bedrock of local government funding in Florida, supporting vital services such as public schools, police and fire departments, parks, and libraries. Despite this, lawmakers and voters alike continue to wrestle with the question: Should Florida reduce or even eliminate property taxes altogether?
A Look Back: Historical and Legislative Context
Florida has a long tradition of property tax relief measures. The Save Our Homes residential property value assessment cap and homestead exemptions are just two examples of how the state has attempted to protect homeowners from rapidly rising property values and corresponding tax bills. Over the years, voters have seen multiple proposed constitutional amendments, particularly in 2020 and 2022, designed to expand these protections. But none of these proposals reached the 60% supermajority required for passage.
The 2025 Push for Reform
Governor Ron DeSantis made headlines in early 2025 by calling for an ambitious rethinking of Florida’s property tax system. He proposed a constitutional amendment for the 2026 ballot and formed a task force to evaluate the feasibility and consequences of such a significant policy shift.
The legislative session that followed was packed with proposals. Among the most notable:
- SB 852, which commissioned a formal study on eliminating property taxes.
- HJR 357 and HJR 773, both aimed at overhauling property assessment methodologies.
- Various bills proposing an increase in the homestead exemption from $50,000 to $75,000.
Despite this momentum, the session ended without major reform. Lawmakers grappled with the harsh fiscal realities of eliminating a revenue source that brings in roughly $43 billion annually. Concerns centered on how local governments would continue to fund essential services and what tax would replace property taxes if eliminated. A $2.8 billion tax-cut package collapsed late in the session under political pressure and disagreements about the direction of reform.
What’s Next for Florida Homeowners?
Although no sweeping reforms passed in 2025, the issue is far from dead. Legislative leaders have signaled that property tax reform remains a top priority heading into the 2026 election cycle. A constitutional amendment could reappear on the ballot, and more targeted reforms such as revised assessment rules or expanded exemptions may gain more traction in the meantime.
Still, the road ahead is steep. Eliminating property taxes would require Florida to either drastically increase other forms of taxation or slash public services – neither of which is an easy sell to voters or lawmakers.
Exploring Alternatives: How Could Florida Replace Property Taxes?
In light of the $43 billion at stake, Florida policymakers are considering several alternative funding models. When evaluating potential replacements for Florida’s property tax revenue, several major models stand out, each with distinct strengths and weaknesses:
- Expanded Sales Tax: Increasing the current 6% state sales tax or broadening the base to include more goods and services is a leading option. This would preserve Florida’s no-income-tax identity and is relatively easy to administer. However, it is considered a regressive approach, disproportionately affecting lower-income households, and would require a significant rate hike, possibly doubling the current rate.
- State-Level Income Tax: Though currently banned by the Florida Constitution, introducing a personal or corporate income tax would create a more progressive and stable revenue stream. Yet, amending the Constitution is politically unlikely, and resistance among voters is high.
- Increased Fees and Services Charges: Charging more user fees for public services could supplement local revenues. While this approach directly links costs to usage, it risks being seen as piecemeal “nickel-and-diming” and would likely not raise nearly enough to replace property taxes outright.
- Real Estate Transfer Tax: Raising taxes on property sales could generate substantial revenue, particularly from high-value transactions. But this source is highly cyclical and could dampen the real estate market during downturns.
- Tourism & Hospitality Taxes: Florida’s tourism-heavy economy presents another option: increasing taxes on hotels, car rentals, and other visitor services. While politically palatable, since tourists do not get to vote, this revenue stream is volatile and insufficient on its own.
Conclusion: A Balancing Act Ahead
Florida’s 2025 legislative session highlighted both the appeal and complexity of property tax reform. While eliminating this tax entirely remains politically and fiscally challenging, the conversation is far from over. Voters may face a consequential constitutional amendment on the 2026 ballot, and in the meantime, legislators will likely continue to pursue incremental changes aimed at easing the burden on homeowners while preserving critical public services.
For now, the Sunshine State stands at a fiscal crossroads between balancing tradition, public demand, and practical limits as it reimagines the future of property taxation