Governor DeSantis's Plan to Eliminate Property Taxes: Understanding What This Means for Florida Property Owners & Residents
In February 2025, Florida Governor Ron DeSantis expressed support for a legislative proposal aimed at eliminating property taxes in the state. This initiative, introduced by State Senator Jonathan Martin through Senate Bill 852, seeks to commission a comprehensive study to assess the feasibility of abolishing property taxes and exploring alternative revenue sources, such as a sales-based consumption tax. Source: Bay News 9
Florida has long been a haven for residents seeking low taxes, warm weather, and financial advantages. Now, imagine if the state were to completely eliminate property taxes—a move that would significantly impact homeowners, renters, businesses, and local governments. While this concept remains hypothetical, many states and policymakers have explored ways to reduce or replace property taxes.
If Florida were to eliminate property taxes, what would this mean for residents, businesses, and the state’s economy? Let’s explore the potential benefits, challenges, and long-term implications of such a policy shift.
How Florida’s Current Property Tax System Works
Currently, Florida does not have a state income tax, meaning much of its revenue comes from sales taxes, tourism, and property taxes. Property taxes are collected at the local level and fund essential services like:
- Public Schools
- Police and Fire Departments
- Road Maintenance
- Local Government Operations
Homeowners pay property taxes based on the assessed value of their property, with rates varying by county and municipality. Florida offers homestead exemptions that can significantly lower property tax bills, but taxes still remain a primary source of revenue for local governments.
Now, let’s consider the possibilities and challenges if Florida were to completely eliminate property taxes.
Potential Benefits of Eliminating Property Taxes
1. Huge Savings for Homeowners
If property taxes were abolished, homeowners would save thousands of dollars each year. Florida’s average property tax rate is around 0.89% of a home’s assessed value, meaning a homeowner with a $300,000 property currently pays around $2,670 per year. Without property taxes, homeowners would have more disposable income, leading to increased spending and investment in local economies.
2. Increased Homeownership Rates
Without annual property tax payments, homeownership would become more affordable, encouraging more people—especially renters—to buy homes. This could lead to:
- A boom in real estate demand
- More people relocating to Florida
- Higher property values due to increased demand
3. Attracting More Businesses and Retirees
Florida is already a top destination for retirees due to its lack of a state income tax. If property taxes were eliminated, it could become even more attractive for retirees and businesses looking for a low-tax environment. More businesses moving to Florida would mean job growth and an expanded economy.
4. No Risk of Losing Your Home Due to Unpaid Taxes
Currently, if homeowners fall behind on property tax payments, they can lose their homes in a tax lien or foreclosure sale. Eliminating property taxes would reduce financial stress for homeowners, especially seniors and those on fixed incomes.
Potential Benefits of Eliminating Property Taxes
1. Huge Savings for Homeowners
If property taxes were abolished, homeowners would save thousands of dollars each year. Florida’s average property tax rate is around 0.89% of a home’s assessed value, meaning a homeowner with a $300,000 property currently pays around $2,670 per year. Without property taxes, homeowners would have more disposable income, leading to increased spending and investment in local economies.
2. Increased Homeownership Rates
Without annual property tax payments, homeownership would become more affordable, encouraging more people—especially renters—to buy homes. This could lead to:
- A boom in real estate demand
- More people relocating to Florida
- Higher property values due to increased demand
3. Attracting More Businesses and Retirees
Florida is already a top destination for retirees due to its lack of a state income tax. If property taxes were eliminated, it could become even more attractive for retirees and businesses looking for a low-tax environment. More businesses moving to Florida would mean job growth and an expanded economy.
4. No Risk of Losing Your Home Due to Unpaid Taxes
Currently, if homeowners fall behind on property tax payments, they can lose their homes in a tax lien or foreclosure sale. Eliminating property taxes would reduce financial stress for homeowners, especially seniors and those on fixed incomes.
How Likely Is Florida to Eliminate Property Taxes?
While eliminating property taxes may sound appealing, it is unlikely to happen without major changes in how the state generates revenue. Florida lawmakers have discussed various tax reform proposals, including:
- Expanding sales taxes to services (e.g., legal, accounting, and consulting fees).
- Increased tourism taxes (higher hotel and rental car taxes).
- Statewide lottery and gambling expansions to generate more revenue.
However, any effort to completely abolish property taxes would require constitutional amendments and strong public support.
What This Means for You
If Florida were to reduce or eliminate property taxes, the impact on homeowners, renters, and businesses would depend on how the state replaces lost revenue. Here’s what you should consider:
✔ If you own a home: You could save thousands per year, but be prepared for possible increases in sales taxes or fees.
✔ If you rent: Landlords may pass on tax savings, but rental prices could still rise due to other economic factors.
✔ If you own a business: A lower tax burden might be good for growth, but new fees or sales taxes could offset the benefits.
✔ If you have children in school: Keep an eye on education funding changes, as property taxes play a huge role in supporting public schools.
Final Thoughts: Is Florida Ready for a Property Tax-Free Future?
While eliminating property taxes sounds appealing, the reality is far more complex. Florida would need alternative revenue sources to maintain essential public services, and any new system would have winners and losers.
At McGuire Megna Attorneys, we stay informed about legal and financial changes that affect Florida residents. If you’re a homeowner, renter, or business owner concerned about property taxes and how future changes may impact your financial stability, we’re here to provide legal guidance.
Contact us today for a consultation and stay ahead of Florida’s evolving tax laws!