Momentum for eliminating property taxes faces multiple obstacles, risks

Chatter about eliminating the property tax in Florida started to percolate in February — beginning with Gov. Ron DeSantis. In a signal to the Legislature, he floated the idea, saying if you own a home in Florida, “your homesteaded property, I think you should be able to own that free and clear of the government.”

The 2025 legislative session included at least four proposed bills on the matter, though none passed. One would have overhauled assessment methodologies, reports law firm Greenspoon Marder, in a tax reform blog post. Another would have increased the homestead exemption from $50,000 to $75,000. And a bill that would have required the state's Office of Economic and Demographic Research to conduct a study on the matter died in committee.

There is a big pile of money at stake. Total property taxes levied in Florida have increased more than 108%, or by $28.7 billion over the past decade, according to Florida TaxWatch. That far outpaces 17.5% population growth and 31.8% inflation growth in that time, the non-partisan government watchdog and taxpayer research institute adds. Adding a level of complexity, each county has a different property tax. One oft-discussed option has been to trade a decrease in property taxes with an equal increase in the sales tax. Florida TaxWatch, for one, balks at that choice, saying it “is an easy option but fails to drive meaningful reform. While it does address the raised fairness question by being consumption based, it does not force local governments to continually audit themselves to provide the most accountability to Floridians.”

And the effort isn’t going away. As policymakers begin to assess topics they will pursue in Tallahassee in 2026, property tax reform is at the top of the list.

Given how many people live in Florida — 23.37 million — and the services that requires, eliminating property taxes outright, or even curtailing them, promises to be a complicated, highly-political process of winners, losers and lots of in-betweens. In noting no action was taken in 2025, GreenspoonMarder notes “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.” (Those services include law enforcement, fire protection, schools, sanitation and more.)

In a new report, Florida TaxWatch analyzes five options for the future of Florida’s property tax. Since the Florida Constitution governs most of the state’s property tax system, significant reform, the report adds, “will almost surely require one or more constitutional amendments, ultimately giving voters the last word.”

One of the five options in the report looks at statutory changes the Legislature can make in 2026. The other four would require a constitutional amendment. More details on those four options includes:

1. Phase out property taxes for homeowners.

The report says a measured approach would be to “phase the total elimination over a period of years, providing continued revenue for critical government services for a known time period and allowing state and local governments to plan for the eventual steep reduction in revenue.” While a benefit of this option would be to “redefine true property ownership," a risk would be that “without a comprehensive plan, critical government services could be negatively impacted.” 

2. Prioritize eliminating property taxes for senior Florida homeowners.

The senior homestead exemption currently totals $8.3 billion, 0.6% of the total assessed value of homestead properties, reports Florida TaxWatch. So the pool of money is considerably smaller. This option would increase financial stability to eligible seniors on fixed incomes, freeing up funds to spend on health care and groceries, the tax group says. But like in option one, the risks run deep, with “a significant loss in total revenue” for local governments in the offing. 

3. Eliminate property taxes for Florida homeowners, except for school property taxes.

Using 2024 figures, a phased elimination of all non-school ad valorem taxes, says Florida TaxWatch, would ultimately cost local governments an estimated $12 billion. On the plus side, the report points out that this plan both maintains funding for public schools and avoids a “complex statutory revision to school funding formulas.” But like, in options one and two, this option leaves a gaping hole in paying for other services. 

4. Lower property taxes for Florida homeowners.

This plan, the report says, would require all local governments to adopt the previous year’s millage rates over a determined period of time. “For example, over the next five years, local governments must adopt the roll-back rate, with the set percent reduction added back for the calculation.” Lawmakers, the report adds, can choose the percentage reduction that achieves the desired amount of tax savings.” The flip side? There would still be less money for essential services. 

Florida TaxWatch, in analyzing all the options, encourages lawmakers to take a measured, reasoned and possibly phased approach to reform. And while not choosing one option over another, it takes a go-big approach. “The intersection of property taxes and true homeownership,” the report states, “provides a pivotal opportunity for policymakers to pursue significant reform that could impact millions of Floridians and incentivize homeownership.”