Will Florida Property Taxes Soon Be Eliminated?

But before we take a look at the specific resolutions, 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.

Proposed Tax Reform Resolutions

While there are a dozen house and senate joint resolutions that have been proposed in all, let’s take a look at the following ones as they are dominating the headlines.

• Elimination of Non-school Property Tax for Homesteads (HJR 201)

  This resolution seeks to eliminate all non-school property taxes for properties that are homesteaded in Florida.
  Non-school taxes typically cover services such as water management, fire rescue and hospital that are paid to your local city or county municipality and typically comprise about 60% of one’s property tax bill. This resolution also prohibits counties and municipalities from reducing funding for law enforcement.

• Phased Out Elimination of Non-school Property for Homesteads (HJR 203)

  This resolution seeks to increase the homestead exemption amount by $100,000 per year, over the next ten years, starting in January 2027.
  Then, in January of 2037, the entire assessed value of homestead properties would be exempt from all ad valorem ("according to value”) taxes other than school taxes. This resolution also prohibits counties and municipalities from reducing funding for law enforcement.

• Elimination of Non-School Property Tax for Homesteads for Persons Age 65 or Older (HJR 205)

  The resolution seeks to eliminate all non-school taxes, for homesteaded properties, for persons who are age 65 or older.
  This resolution also prohibits counties and municipalities from reducing funding for law enforcement.

• Modification of Limitations on Property Assessment Increases (HJR 213)

  This resolution seeks to limit increases in the assessed value of homesteaded properties from the current 3% cap per year, under the current “Save our Homes” (SOH) amendment, to a proposed 3% increase over a 3-year period.
  This would essentially lower the assessed value increase by 2/3 rds over the 3 year period. This resolution also prohibits counties and municipalities from reducing funding for first responders.

• Homestead Property Tax Benefits for Long-term Owners (SJR 274)

  This resolution seeks to freeze the taxable value of your homesteaded property and provide an additional exemption based upon the length of time you remain in your home.
  Specifically, this resolution seeks to freeze or "lock in" the assessed value of your home (preventing any further increases) if you have lived in your homesteaded property for a period of 20 years. Additionally, for persons who live in their homesteaded property for 30 years, they would receive an additional property tax exemption equal to 50 percent of the assessed value of the property. This would basically reduce your property taxes by half.

FAQ's Regarding the Proposed Resolutions

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

• Who Would be Impacted by the Resolutions?

  The resolutions 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 resolutions 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 resolutions.

• What is the Projected Revenue Loss From the Resolutions?

  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 Approve the Resolutions?

  While these resolutions are still being debated in the Florida legislature, each resolution will need to achieve a 60% approval vote from both the Florida House and Florida Senate in order to be placed on the ballot as a constitutional amendment in the November 2026 general election. Then, in order to pass, Florida voters must approve the amendments with a 60% approval vote. If passed, the amendments would become an official part of the State Constitution and take effect on Jan 1, 2027.

• If Passed, Could the Resolutions 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 Resolutions 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.