Will Florida Property Taxes Soon Be Eliminated?

But before we take a look at the specific ammendments, it’s important to understand "why" property tax reform to reduce (or eliminate) property taxes for primary residences could potentially work in Florida, vs other states. Simply stated, Florida, being the #1 tourist destination state in the U.S., generates a large amount of tourist tax revenue (via hotel, motel and short-term rental stays) as well as a large amount of property tax revenue from a vast quantity of investment properties (i.e. 2nd homes, vacation homes and Airbnbs) within the state. The revenues generated from these two categories, in conjunction with local municipalities eliminating wasteful spending, could potentially be enough to reduce or eliminate property taxes altogether for Floridians who have homesteaded their property. Studies are now being done to evaluate this.

FAQ's Regarding the Proposed Ammendment

The following are some of the more frequently asked questions regarding the impacts of the ammendment if passed, especially on funding for local municipalities and how home values would likely be affected.

• Who Would be Impacted by the Ammendment?

  Any ammendment that is approved (by Florida voters) would ONLY apply to Florida residents who own their property and have homesteaded it, meaning that they have declared their home as their primary residence. The resolution would not impact persons who own investment properties in Florida (including rental homes, Airbnbs and 2nd homes) nor do they impact commercial properties. Taxes for non-homesteaded properties in Florida would remain the same.

• What Percent of Florida Properties are Homesteaded?

  According to data from the Florida Office of Economic and Demographic Research (EDR), in 2025, approximately 47% of all property parcels in Florida were homesteaded. As there are approximately 11 million property parcels in the state of Florida, this means that roughly 5 million homesteaded properties would be impacted by the ammendment.

• What is the Projected Revenue Loss From the Ammendment?

  According to the Florida House of Representatives website, the projected revenue loss for municipalities would be about 14 billion per year, but this amount is essentially equal to the amount of extra spending which state municipalities have taken on since calendar year 2021. To combat this extra spending, in early 2025, Governor DeSantis established the Florida Department of Government Efficiency (aka “Florida DOGE”) to audit state agencies and local governments to eliminate waste, improve accountability, and reduce spending. Also, as the State of Florida will be not using sales tax revenues to fund any shortfall of property tax revenues, local municipalities are considering "unbundling" services covered under property taxes, such as fire rescue, waste water management, trash pickup, etc…, and sending separate bills to residents to pay for these services.

• What are the “Next Steps” to Advance the Ammendment?

  As the next step, the ammendment will now be placed on the November ballot for Florida voters to approve, and will need 60% approval in order to pass. If passed, it would then become Florida law and take effect on Jan 1, 2027.

• If Passed, Could the Ammendment Impact Florida Home Values?

  The simple answer is yes. As property taxes represent a significant on-going expense of owning a home, reducing or removing property taxes on the same home would make it more affordable in terms of the monthly payment, as taxes are often included in your monthly mortgage payment (via an escrow account). As monthly payments reduce, this means that buyers would be able to afford a more expensive home via the same monthly payment. The National Association of Realtors economic research team recently published an article (view here) stating that Florida home prices could rise 7%- 9% if the amendment is passed. Any price increase would instantly place a greater financial burden on renters and first-time home buyers.

• If Passed, Would the Ammendment Impact the Demand for Florida Real Estate?

  This is a resounding yes! There would likely be a surge in buyer demand from both in-state and out-of-state buyers who would want to own a home in the state with the lowest property taxes in the nation, and likely never want to leave Florida for this reason.