Key facts
- Florida Governor Ron DeSantis is proposing to eliminate property taxes for most primary homeowners.
- The plan involves increasing the homestead exemption from $50,000 to $250,000, with potential future increases.
- Proponents believe this will boost Florida's attractiveness for businesses and residents.
- Opponents caution that the change could inflate home prices and disrupt local tax systems.
- A constitutional amendment increasing the homestead exemption has passed the Florida Legislature and will go to voters in November 2026.
Florida Governor Ron DeSantis' proposal to phase out property taxes for most primary homeowners is a significant housing debate in the state. Supporters, including Aaron Davis, CEO of Florida Agency Network, argue that eliminating property taxes could further enhance Florida's appeal to businesses and residents relocating from higher-tax states, potentially making it more attractive than states like New York. Davis noted that while property taxes can be exorbitant in Florida, taxes on commercial properties and secondary residences would remain.
However, critics like Beth Silverman, a Realtor with eXp Realty, suggest the proposal could lead to a 4% to 9% increase in home prices, with an estimated equity gain of $30,000 to $40,000 for homeowners. She highlighted that this increase might not fully address affordability for first-time buyers, who could face significantly higher monthly ownership costs due to reassessed taxes and rising insurance premiums, especially after the initial purchase.
DeSantis has called a special legislative session to discuss the measure, which requires approval from 60% of lawmakers and subsequently 60% of voters in a statewide referendum. The governor also proposed a five-year residency requirement for tax relief eligibility. The Florida Legislature has passed a joint resolution, HJR 1, to amend the state constitution by increasing the homestead exemption and indexing it for inflation, which will be presented to voters in November 2026. This proposal, dubbed the “Save our Homes from Excessive Property Taxes” amendment, aims to substantially reduce property taxes on homestead properties.