What Homeowners Should Know

Florida lawmakers are discussing a proposal that could eliminate most property taxes on primary homes. It is still early in the process, but if it ever happens it could change the long term cost of owning a home in Florida.

I spend a lot of time talking with buyers and sellers about the cost of owning a home in Florida. Property taxes always come up in that conversation. Recently I started hearing more about a proposal that could eliminate most property taxes on primary homes. When I first heard about it, I had plenty of questions myself. Since real estate and taxes go hand in hand, I thought it would be helpful to explain what is actually being discussed and what it could mean for homeowners.

Florida has been growing for a long time, but the past several years have been especially interesting. People from all over the country continue moving here. Families, retirees, business owners, and even some of the biggest names in business have chosen Florida.

Now there is a new conversation happening in the state legislature that has a lot of people paying attention. The idea being discussed is eliminating most property taxes on primary residences.

A proposal in the Florida Legislature called House Joint Resolution 201 would remove many of the property taxes homeowners currently pay on their primary residence.

 

What the Proposal Would Do

First, the headlines can make this sound bigger or simpler than it really is.

Florida is not talking about eliminating property taxes completely.

What the proposal would do is remove most property taxes on homestead properties, which means your primary residence.

If it passed, homeowners would likely no longer pay property taxes to their county or certain other districts.

School district property taxes would still remain.

So property taxes would not disappear completely. They could simply become much lower for homeowners who live in their home full time.

 

This Only Applies to Primary Residences

The proposal applies only to homesteaded properties. That means homes that are your primary residence and where you have filed for homestead exemption.

It would not apply to

second homes

vacation homes

rental properties

investment properties

commercial real estate

Those properties would still pay property taxes just like they do today.

 

Where the Proposal Stands Right Now

Right now this is still a proposal moving through the Florida legislative process.

For something like this to become law several things would have to happen.

First the proposal would have to pass both the Florida House and the Florida Senate.

Then it would go on a statewide ballot, most likely in the 2026 election.

After that Florida voters would have to approve it. Constitutional amendments require 60 percent approval.

If that happened the changes could start around 2027.

So this is something people are watching, but it is definitely not happening overnight.

 

Why This Conversation Is Happening

Property taxes have been rising in many parts of Florida.

When home values increase, tax assessments usually follow. That has been happening as more people move to Florida and housing demand continues to grow.

At the same time Florida already has a tax advantage compared to many other states because there is no state income tax.

 

People and Businesses Continue Moving to Florida

One of the interesting things happening right now is the number of high profile business leaders relocating to Florida.

Recent reports mention people such as Jeff Bezos, Mark Zuckerberg, and former Starbucks CEO Howard Schultz purchasing homes or relocating to Florida.

While those stories make headlines, they are part of a much larger trend.

Companies are moving here as well. Financial firms, technology companies, and entrepreneurs are expanding in Florida because of the business climate and tax structure.

When companies move somewhere jobs follow. When jobs follow housing demand grows.

 

What This Could Mean for Florida Real Estate

If this proposal ever became law it could make Florida even more attractive for homeowners.

Lower property taxes on primary residences could reduce the long term cost of owning a home.

That could lead to

more people relocating to Florida

continued demand for housing

strength in the luxury home market

long term pressure on home values to rise

There are still big questions about how counties would replace the tax revenue they currently receive from property taxes. That conversation will likely continue for some time.

 

Florida Real Estate Has Remained Strong

Even with higher interest rates and uncertainty in the world economy, Florida real estate has remained strong.

There are simple reasons for that.

People want to live here.

Florida offers

warm weather

water and outdoor lifestyle

no state income tax

continued population growth

Those factors continue to support housing demand.

 

Questions People Are Asking

Is Florida eliminating property taxes?

Not completely. The proposal would remove most property taxes on primary homes, but school taxes would still remain.

Does this apply to second homes or rental properties?

No. Second homes, rental properties, and investment properties would still pay property taxes.

When could this happen?

If the proposal passed the legislature and voters approved it, it could take effect around 2027.

Is there a value limit on the home?

The proposal currently does not include a value cap for homestead properties.

Where would counties get the money instead?

That is one of the biggest questions lawmakers are still discussing.

 

Final Thoughts

Whether this proposal ultimately happens or not, it highlights something important.

Florida continues attracting people, companies, and investment from across the country.

When people move somewhere housing demand follows.

That is one reason Florida real estate continues to stay strong even during uncertain times.

 

Carrie Cason

Engel & Völkers

 

Carrie Cason has more than 25 years of experience in real estate and works with buyers and sellers across Florida.

 

If you have questions about Florida real estate or how changes like this could affect the market, feel free to reach out anytime.