How No Property Taxes in Florida Could Impact Your Wallet as a Homeowner in the State
Written by
Heather Altamirano
Edited by
Jenna Klaverweiden
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Property taxes in Florida have been skyrocketing over the past few years, and residents are fed up. According to October 2024 data from Redfin, Jacksonville, Tampa and Miami are among the top five places in the U.S. where property taxes have increased the most since 2019. In Jacksonville, property taxes increased by a median of 59.6%, Tampa experienced a median 56.7% jump and property taxes in Miami rose by a median of 48.1%.
Property taxes have gotten so high that Florida Gov. Ron DeSantis has mentioned abolishing property taxes entirely. Here are more details on the current state of property taxes in Florida as well as how no property taxes could impact Florida homeowners.
Also see seven states with cheap housing markets and low property taxes.
The Current State of Property Taxes in Florida
Homeowners are so frustrated with the soaring costs that more than 66% of Floridians voted in favor of Amendment 5, a measure that reduces the taxable value of a property through an inflation adjustment.
But DeSantis doesn’t believe that’s enough. “You buy a home, you buy land … and you’ve been taxed many times [on that] … Is it your property, or not? Just for being on your property, you’ve got to write a check to the government every year,” DeSantis said at a recent press conference. “A lot of people can’t afford that, so I think that that’s a big issue … and we’re going to be looking at ways to bring people relief from that.”
While the idea is radical, it could create significant savings for homeowners. However, property taxes bring in more than $40 billion for the state, which helps fund schools, infrastructure, emergency services and more, per Realtor.com, so the state would need to find other ways to replace that lost revenue.
It’s a complicated situation with pros and cons. If you’re a Florida homeowner, you may be wondering how this could impact you.
More Affordable Homes
Getting rid of property taxes could open up more affordable housing in the state and help homebuyers get into the home of their dreams, according to Robert Washington, a Florida-based broker and founder of Savvy Buyers Realty.
“Homes would become more affordable on the basis of the homebuyer’s monthly mortgage payments, which is what most lenders use to qualify buyers. For example, if a borrower buys a home that is $10,000 more expensive, that will only make their mortgage payment increase roughly $50-$60 per month,” he said. “If property taxes are eliminated for a buyer on $400,000, their mortgage payment would be decreased by roughly $450 per month.”
In addition, eligible homebuyers could potentially get approved for bigger loans and purchase their ideal home.
“It would allow for homebuyers to qualify for much larger home loans since property tax payments are factored into every lender’s qualification determinations,” Washington said.
More Money To Spend
No property taxes means a reduced monthly mortgage payment and Florida residents would have more money in their pockets to spend.
“If property taxes are completely eliminated, it will absolutely lead to consumers having significantly more discretionary funds to spend,” he said. “Most homeowners with a mortgage pay for their property taxes monthly into their escrow accounts. They would instantly see their mortgage payments significantly reduced.”
Increased Sales Tax
While there are some positive aspects of not having property taxes, Florida residents would likely shell out money in other ways.
Sales tax in the state is 6%, but Washington expects it to likely increase if property taxes are eliminated to make up for the loss of revenue.
“That revenue would likely be recovered by increasing sales tax and taxes on tourism,” he explained. “Governor DeSantis has also created his own DOGE task force, which could decrease the amount of tax revenue needed.”
Tough Initial Transition
Doing away with property taxes is a bold idea that could face challenges in the beginning.
“Eliminating property tax can absolutely work,” he said. “It may not be the smoothest process during the initial implementation, but it is something that I think would make Florida an even more attractive place to live for prospective home buyers.”
There’s no denying that taxpayers need relief, but is ditching property taxes the solution? While the initiative might be popular among homeowners and anyone considering buying property in the state, it could also be a risky move. Consumers could spend less due to potentially higher sales taxes, and tourists could go somewhere else due to higher fees and tax rates, according to Washington.
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