Florida TaxWatch released “Options to Eliminate or Reduce the Property Tax Burden on Florida Homeowners” primer, prior to the start of the Monday, Sept. 22, Florida House of Representatives Select Committee on Property Taxes meeting, in an effort to provide reasoned and measured examination.
Property taxes are by far the largest source of tax revenue for Florida’s local governments, generating $55 billion in 2024 for counties, school districts, municipalities, and special districts, and that amount is rising rapidly. Of this total, $19 billion is paid by Florida homeowners. This revenue funds critical government services such as public safety, fire protection, education, and sanitation. Moreover, local governments often enjoy increased property tax revenues without increasing the millage rate, since the value of property usually rises, often significantly, generating millions of dollars in additional property tax revenues.
“There is no doubt that taxpayers and local governments alike will be affected by any comprehensive lowering of property tax revenue as it bears the fiscal burden of many critical government services,” Florida TaxWatch President and CEO Dominic M. Calabro said. “Whatever policy is ultimately put forward for voters to decide should be comprehensive and strategic, engage both state and local governments to ensure a smooth transition and implementation, uninterrupted delivery of critical government services like public safety and education. If the relief is focused on homesteaders, safeguards against shifting the tax burden to non-homestead property should be provided.”
Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said, “Florida TaxWatch commends the Governor and the Legislature for taking on this conversation. One argument to offset any reduction in property taxes is to increase sales tax. On the surface this may appear to be an easy option, but it fails to drive meaningful and lasting tax reform. While raising the sales tax does address the fairness question, because the sales tax is consumption based, it does not force local governments to continually monitor their spending and control the growth of their budgets. Local governments must learn to live within their means – just as the taxpayers of Florida do.”
Florida TaxWatch Senior Vice President of Research Kurt Weener said, “Since 2006, Florida voters have seen 17 constitutional amendments regarding property taxes sponsored by the Florida Legislature on their ballots, the majority focused on homestead relief. This historical piece-meal approach to alleviating the property tax burden on homeowners is subjective to political priorities and often results in higher taxes for renters, businesses, and those looking to buy their first home. Whatever the ultimate result of the property tax debate is, state and local governments must collaborate to effectuate responsible stewardship of taxpayer dollars and legislators must consider the equity of any changes.”
Florida TaxWatch Vice President of Research Brandi Gunder said, “Florida has long been recognized as a leader in advancing responsible fiscal policy and Florida TaxWatch welcomes this dialogue in examining five potential approaches to property tax reform for Florida homeowners, ranging from the most significant proposal of eliminating property taxes for eligible homeowners to more immediate measures the Legislature could enact in the 2026 session to bring more transparency and accountability without requiring a constitutional amendment.”
Option 1. Phase Out Property Taxes for Florida Homeowners
Using 2024 figures, eliminating property taxes for the approximately five million Florida homestead properties would cost local government approximately $19 billion. Under current growth estimates of homestead taxable value, this would grow to approximately $30 billion by 2030, assuming no change in millage rates.
A more measured approach is 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. A phased elimination could be accomplished by an annual increase in the homestead exemption, changing it from a dollar amount to a percentage of assessed value. Policy makers could determine any length of time over which to phase out ad valorem taxes for homestead properties.
Florida TaxWatch reviews two proposals for eliminating property tax for homeowners over 10 years and 30 years based on the assessed value of the five million homestead properties in 2024.
Under the 10-year plan, increasing the current exemptions to account for 25 percent of the frozen Year 1 assessed value of homestead properties in the second year, and then an incremental 10 percent each subsequent year, would eliminate property taxes on the current five million homestead properties in 10 years. This phased proposal would provide a $1 billion tax cut in the second year. Under the 30-year plan, the exemption value rises at a slower pace compared to the 10-year plan, resulting in a steady reduction of $655.2 million in homestead property taxes annually.
Option 2. Prioritize Eliminating Property Taxes for Senior Floridian Homeowners
Florida has one of the highest populations of seniors in the nation, with 22.7 percent of the total state population aged 65 and older. The senior homestead exemption currently totals $8.3 billion, 0.6 percent of the total assessed value of homestead properties.
To assist Florida’s elderly population maintain fiscal stability and remain in their homes as long as physically able, any phased proposal to eliminate property taxes for homeowners could be retroactive for senior citizens aged 65 years and older, allowing prior years to count towards the total number of years outlined. For example, under the 10-year phased elimination proposal, eligible seniors who have claimed homestead in Florida for at least 10 years would receive a 100 percent exemption of their home’s assessed value in the first year.
Data indicates nearly 19 percent of the state’s total population are homeowners aged 65 and older. Assuming the entire 19 percent of eligible aged homeowners have claimed homestead for the determined number of years, an estimated $3.6 billion in property tax revenue could be eliminated immediately under a proposal that grandfathers in years of claimed homestead for Floridians aged 65 and older.
Option 3. Eliminate Property Taxes for Florida Homeowners, Except for School Property Taxes
School ad valorem taxes generate $21.5 billion for school districts. Approximately $13.7 billion of this total pays for almost half of the state’s $29.5 billion Florida Education Finance Program, which funds the state’s K-12 public schools. The Legislature sets the RLE millage rate each year, and local governments are all but required to adopt the rate in order to receive state funding. The RLE is not subject to several exemptions, including the second homestead exemption and the ten percent increase cap on non-homestead properties.
Florida homesteaded properties account for approximately one-third of the total school taxable value, generating an estimated $7 billion in school ad valorem taxes. In order to maintain funding for schools, policy makers could determine to keep all school levies in effect and only eliminate non-school property taxes. Using 2024 figures, a phased elimination of all non-school ad valorem taxes for the approximately five million Florida homestead properties would ultimately cost local governments an estimated $12 billion over the determined time period.
Option 4. Lower Property Taxes for Florida Homeowners
A proposal to simply lower a property owner’s tax liability is to provide each property in the state with a set percent reduction of the previous year’s assessed value and require all local governments to adopt the previous year’s millage rates. For the next five years, local governments must adopt the roll-back rate, with the set percent reduction added back for the calculation.
This would create a guaranteed, definite reduction for taxpayers that could not be reduced by millage hikes. This exemption could apply to all property types, or the Legislature could limit it to homesteads. If limited to homesteads, this proposal would ensure the reduced tax burden would not shift to other property owners. Policy makers can choose the percentage reduction that achieves the desired amount of tax savings. A 20 percent exemption for all property would save $11.0 billion, or $8 billion if only homesteads were given the exemption.
Option 5. Statutory Changes to Bring Transparency and Accountability in 2026
While eliminating or significantly reducing property taxes would likely require a constitutional amendment, the Legislature has broad statutory authority to reform the property tax process and could enact targeted policies in the 2026 Legislative Session that aim to rein in revenue growth and increase transparency.
Note: Options 1 through 4 would require a constitutional amendment with 60 percent of the voters in agreement. Option 5 includes multiple ideas that could be enacted via statutory changes. For additional information, please click here.
About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit www.floridataxwatch.org.
