Episode 06: Eliminating Property Taxes
Florida’s Property Tax Debate: What It Could Mean for Homeowners, Real Estate, and Public Services
There’s a big conversation happening in Florida right now: should we eliminate property taxes on owner-occupied homes? Governor Ron DeSantis is pushing for a constitutional amendment that could go before voters in 2026. If passed, it would drastically reduce — or even eliminate — property taxes for primary residences.
On the surface, that sounds like a dream for homeowners. But when you dig deeper, the ripple effects are much more complicated.
What’s Actually Being Proposed?
Here’s the framework:
Who it affects: Only owner-occupied, homesteaded properties.
Who it doesn’t affect: Investment properties, rentals, second homes, and commercial real estate. (Important to note: about 25% of Jacksonville homes are owned by LLCs or landlords, which means a large part of the housing market wouldn’t see any relief.)
Funding gap: Property taxes bring in an estimated $40–50 billion a year statewide. Those dollars fund schools, fire/police, libraries, roads, and local government operations.
Replacement plan: The leading idea is to nearly double Florida’s state sales tax from 6% to 12%, or expand sales taxes to things we don’t currently tax.
What Would That Mean for Everyday Floridians?
Eliminating property taxes might feel like a win, but the tradeoff is significant.
📚 Public Services
Because property taxes fund schools, safety, and local government, removing them without a stable replacement could jeopardize:
Teacher pay and school quality
Police, fire, and EMT staffing
Local parks, libraries, and recreation programs
Road maintenance and city services
💸 Higher Sales Taxes
A 12% sales tax would make everyday purchases more expensive:
A $40 dinner out would jump from $2.40 tax to $4.80 tax.
A $25,000 car would see $3,000 in sales tax instead of $1,500.
A $5,000 furniture purchase would go from $300 tax to $600 tax.
For families saving for a home, those higher everyday costs could cancel out any relief from not paying property taxes.
🏡 Real Estate Market Impact
For homesteaded homeowners, the proposal could make ownership more affordable and might increase buyer demand. But since investors and landlords wouldn’t see relief, renters could end up footing the bill as landlords pass on costs.
This uneven impact creates a market where primary buyers may benefit, but affordability for renters and investors could tighten — especially in places like Jacksonville where rental and investment properties make up a quarter of the housing stock.
How Likely Is This to Pass?
The path forward isn’t simple. To get on the ballot, the amendment must:
Pass the legislature with a three-fifths majority.
Win at least 60% voter approval in 2026.
That second step is a tall order. Recent polls show about 68% of Floridians would rather keep property taxes than face a sales tax as high as 12%. And in the past, even modest tax-related amendments have failed to clear the 60% hurdle.
In other words: it’s highly likely that you’ll see this measure on the ballot in 2026, but whether voters will actually approve it is much more uncertain.
Alternative Approaches
Instead of eliminating property taxes altogether, Florida could explore targeted relief options that ease the burden without destabilizing public services:
Expand the Homestead Exemption
Increase the current $50,000 exemption to something larger (proposals have suggested up to $500,000).Cap Assessment Increases
Limit how much a property’s assessed value can rise annually — for example, 3–5% for all properties, not just homesteads.Targeted Credits or Rebates
The Governor has already floated a $1,000 annual rebate for homesteaded homeowners. Expanding that idea could help without cutting off school and city funding entirely.Focus Relief Where It’s Needed Most
Direct property tax relief toward seniors, veterans, or first-time buyers who are most sensitive to affordability challenges.
The Bottom Line
The idea of eliminating property taxes is bold, and it certainly grabs attention. But the tradeoffs — from higher sales taxes to weakened schools and services — raise real concerns.
For Jacksonville homeowners, buyers, and renters, the impacts would look very different depending on your situation:
Primary homeowners might save money on taxes.
Renters and investors wouldn’t see relief, and could feel squeezed by higher costs.
Communities could face reduced funding for essential services.
As the 2026 ballot approaches, the debate will continue. But one thing is clear: property taxes are deeply tied to the quality of life in Florida’s neighborhoods, and any change has to balance affordability with the services that make our communities livable.
👉 I’ll be keeping a close eye on this issue as both a REALTOR® and a Jacksonville native. If you’re wondering how these potential changes could affect your home search, property value, or long-term investment plans, let’s connect and talk through it.
