Florida Property Tax Reform: What Buyers Need to Know

The question came up in February, and it hasn't gone away: could Florida voters actually stop paying property taxes by 2027? Governor Ron DeSantis floated the idea on social media after a constituent suggested abolishing real estate taxes in Florida. The response was immediate, national, and polarizing. For anyone buying or selling in Palm Beach County, Jupiter, or Palm Beach Gardens, this isn't just political theater. It's a conversation that could reshape affordability, resale value, and what it costs to own a home here long-term.

I get calls every week from buyers relocating to South Florida who love the no-income-tax pitch but then see their first property tax estimate and freeze. Insurance and property taxes now exceed principal and interest for most buyers here. That's not a talking point, that's the monthly budget reality. If DeSantis moves forward with a constitutional amendment in November 2026, and if it clears the 60% voter threshold, the financial equation for owning property in Florida changes overnight. But the details matter, and right now there are six competing proposals on the table, each with different trade-offs.

In this article, I'll walk through the current property tax structure, the six front-runner proposals being discussed in Tallahassee, the pros and cons of each, and what I think makes sense for Florida buyers and homeowners. This is not a partisan endorsement. It's a breakdown of what's actually being proposed and what it would mean if you're buying, selling, or holding property in Palm Beach County.

Table of Contents

• Why Property Taxes Are Rising and Why This Matters Now
• How Florida's Homestead Exemption Works Today
• Six Proposals to Eliminate or Reform Property Taxes
• Pros and Cons of Each Proposal
• What I Think Makes Sense: One Clear Amendment
• Conclusion: What This Means for Palm Beach County Buyers and Sellers

Why Property Taxes Are Rising and Why This Matters Now

Total property taxes in Florida have more than doubled since 2014. In the three years leading up to 2024, they rose 40%. In 2024 alone, property tax revenue for the state hit $55 billion, $15 billion more than in 2020. That's billion with a B. For context, that's not just inflation or rising home values. It's also local governments expanding budgets on the back of property tax revenue, which is exactly what DeSantis is calling out.

Florida ranks middle of the pack nationally on property tax rates. We're a low-tax state overall, second lowest per capita state taxes in the country, no income tax, and a sales tax that's middle of the road. But middle of the pack on property taxes isn't good enough when you're trying to attract buyers and keep current homeowners from getting priced out. DeSantis believes, and I agree, that local governments have gotten bloated on property tax revenue and that we can reduce what counties and municipalities collect without sacrificing quality of life or services.

The other piece of context: the current market is locked up. Buyers don't want to move from Tampa to Jacksonville and reset their tax basis to current market value when they're sitting on a lower interest rate and a lower assessed value. Sellers don't want to give up their homestead cap and start over. The result is fewer transactions, less inventory, and a market that's stuck. If you eliminate or dramatically reduce property taxes, you unlock mobility. You make it easier for the next generation to buy and for older generations to stay in their homes without the tax burden forcing them out.

The 70/30 Rule and Who Pays What

Here's a fact most buyers don't know: about 30% of property tax revenue in Florida comes from homesteaded properties, while 70% comes from commercial buildings, residential rentals, vacation rentals, and second homes. That split matters when you're evaluating proposals. If you only reduce the burden on homesteaded properties, you're helping 30% of the tax base. The other 70%, investors, small landlords, commercial property owners, get nothing. That's a political problem and a fairness problem, depending on how you frame it.

How Florida's Homestead Exemption Works Today

Florida voters approved the homestead property tax exemption in 1934 during the Great Depression. The original exemption was $5,000, designed to help people facing economic hardship. The exemption has increased twice since then: to $25,000 in 1980 and to $50,000 in 2008, where it's been stuck ever since.

Here's the part that matters: when the exemption was raised to $25,000 in 1980, that amount represented 33% of the median home value in Florida. Today, the $50,000 exemption represents a much smaller percentage of median home values, which means the exemption hasn't kept pace with appreciation. In 2018, Florida voters had a chance to raise the exemption to $75,000 under Amendment 1. It got 58% approval, just short of the 60% threshold required for constitutional amendments. It failed by two percentage points.

The homestead exemption also includes a cap: if you've homesteaded your property, your assessed value can only increase 3% per year, regardless of how much your home appreciates. If you're not homesteaded, second home, rental, commercial, you're capped at 10% per year. Those caps protect long-term owners but create the lock-in effect I mentioned earlier. You don't want to sell and lose that cap.

Six Proposals to Eliminate or Reform Property Taxes

Governor DeSantis proposed the idea, but he hasn't put forward a detailed plan beyond one: send every homeowner a $1,000 rebate check. Florida House Speaker Daniel Perez formed a tax reform committee to study the issue, and that committee has floated six front-runner proposals. Here they are, in the order they're being discussed most:

1. Eliminate Property Taxes Altogether

This is the boldest option. No more property taxes. Period. You own your home, you pay no annual tax on the land or the structure. DeSantis has said he supports this if it can get 60% voter approval.

2. Create a $500,000 Homestead Exemption (or $1 Million for Seniors)

This proposal would raise the homestead exemption from $50,000 to $500,000 for all homesteaded properties. For Florida residents over 65 who have held homestead for an extended period, the exemption would increase to $1 million. This would apply only to non-school property taxes, meaning the school portion of your tax bill would still be assessed on the full value.

3. Extend the Cap Period from Annual to Three Years

Instead of capping assessed value increases at 3% per year for homesteaded properties and 10% per year for non-homesteaded properties, this proposal would cap increases at 3% over three years for homesteaded properties and 15% over three years for non-homesteaded properties. It's a slower rate of increase, but spread over a longer period.

4. Send Every Homeowner a $1,000 Rebate Check

This is the one DeSantis has publicly supported. Every homeowner gets a $1,000 check in the mail as a rebate on property taxes paid. It's simple, it's immediate, and it's politically popular.

5. Phase Out Property Taxes Over 10 Years

This proposal creates a 10-year runway to eliminate property taxes entirely. Year one might exempt $100,000 of assessed value, year two $200,000, and so on, until property taxes are fully eliminated by year ten. It gives counties and municipalities time to adjust budgets and find alternative revenue sources.

6. Tie the Homestead Exemption to a Percentage of Assessed Value

This proposal would set the homestead exemption as a percentage of your home's assessed value, say, 25% or 33%, rather than a fixed dollar amount. As your home appreciates, the exemption grows with it. This is how the exemption worked in 1980 when it was set at $25,000, which was 33% of the median home value at the time.

Pros and Cons of Each Proposal

Each option has trade-offs. Here's how I see them.

Eliminate Property Taxes Altogether

Pro: This would save homeowners a massive amount of money. For someone with a $1 million home in Palm Beach Gardens, you're looking at $15,000 to $20,000 per year in property taxes. Eliminating that changes the affordability equation overnight.

Con: The state would lose $55 billion in annual revenue. Even with budget cuts, critics argue we'd have to make it up somewhere else, likely through higher sales taxes or new taxes on services. If you're taking from this bucket, you're filling from another bucket.

$500,000 Homestead Exemption (or $1 Million for Seniors)

Pro: This would create substantial savings for homesteaded properties without eliminating all revenue. For seniors on fixed incomes, a $1 million exemption would be life-changing.

Con: This only helps the 30% of properties that are homesteaded. The 70%, commercial properties, rentals, second homes, get nothing. That's a fairness issue and a political problem.

Extend the Cap Period to Three Years

Pro: You're giving homeowners something. It slows the rate of increase.

Con: It doesn't feel like enough. It's a drop in the bucket. I'd almost rather do nothing than settle for this, unless it's paired with another proposal that has real teeth.

$1,000 Rebate Check

Pro: I'd love to get a $1,000 check in the mail. Who wouldn't?

Con: It doesn't move the needle. It doesn't change whether you buy or sell. It doesn't enhance your budget or your lifestyle. It's a one-time gift, not a structural fix. I don't want politicians kicking the can down the road. I want them solving the problem.

Phase Out Property Taxes Over 10 Years

Pro: This creates a runway. It gives counties, municipalities, and taxpayers time to adjust. You're working toward full elimination without the shock of an overnight revenue loss.

Con: Critics will still ask how you replace the revenue over time. And if you're phasing it out, you're still dealing with the same question: where does the money come from?

Tie the Exemption to a Percentage of Assessed Value

Pro: This is something that grows with property values over time. It's not a one-size-fits-all fix, but it scales. If the exemption is set at 25% or 33% of assessed value, it grows as your home appreciates. I like this because it's fair, it's sustainable, and it would substantially reduce the tax burden without eliminating all revenue.

Con: You're still reducing the budget. Government officials will argue they're losing revenue and will need to increase taxes elsewhere. But I think this is the most viable path to getting 60% voter approval.

What I Think Makes Sense: One Clear Amendment

Governor DeSantis wants one bill for voters to approve. House Speaker Danny Perez wants to give voters options. I get the appeal of options, no one likes being told there's only one choice. But my experience is that too many options create decision fatigue and confusion. When you're asking 60% of Florida voters to approve a constitutional amendment, clarity matters more than choice.

Here's my analogy: when my wife and I go out to dinner, I'm a quick decision maker. I know what I want before I get there. My wife, on the other hand, takes longer when the menu is large. Her decision is usually great, but it takes time, and I can get a little hangry waiting. What I've learned to do is send her the menu ahead of time or ask her what she's in the mood for, Italian, steak, whatever, and narrow the options before we sit down. That makes the evening go better.

The same principle applies here. If we put six options on the ballot, we're going to confuse voters. People on both sides of this issue will argue the benefits and the catastrophic risks. The messaging will get muddled. We need one amendment that is strong, clearly messaged, and easy to understand. That amendment should reduce or eliminate property taxes in a way that doesn't sacrifice quality of life, services, or infrastructure. It should make clear that we'll still have money for police, firefighters, first responders, teachers, A-rated schools, and roads.

Florida has become one of the most attractive states to live in. I get calls every week from buyers all over the country who want to move here for the quality of life, the infrastructure, the freedoms, the beaches, the schools. But the costs are becoming unmanageable, and property taxes are part of that. Let's make a smart decision and reduce the burden.

If I had to put this on a bumper sticker, here's what it would say: Let's make property taxes sensible again.

Conclusion: What This Means for Palm Beach County Buyers and Sellers

If you're buying or selling in Palm Beach County, Jupiter, or Palm Beach Gardens, this conversation matters. A constitutional amendment to reduce or eliminate property taxes would change the affordability equation, unlock inventory, and make it easier for buyers to move without resetting their tax basis. It would also make Florida even more attractive to out-of-state buyers, which could push prices higher in the short term.

The timeline is November 2026. That's when voters will decide. Between now and then, the proposals will be debated, refined, and messaged. My hope is that we get one clear, strong amendment that reduces the burden without creating confusion or unintended consequences.

If you're thinking about buying or selling and want to talk through how property tax reform might affect your decision, let's get on a call. I can walk you through the current tax structure, what your carrying costs would look like today, and what they might look like if one of these proposals passes. Call/text me anytime at 561-944-2811  or schedule a FREE consultation here. I'd love to help you make a smart decision.