Florida Wants to Eliminate Property Taxes. Here’s Who Would Really Pay Instead

A new proposal could significantly reduce property taxes for many Florida homeowners. Here’s how the plan would recalibrate the state’s tax structure and shift who ultimately pays the price. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Delivered dailyKiplinger TodayProfit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.Sent five days a weekKiplinger A Step AheadGet practical help to make better financial decisions in your everyday life, from spending to savings on top deals.Delivered dailyKiplinger Closing BellGet today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.Sent twice a weekKiplinger Adviser IntelFinancial pros across the country share best practices and fresh tactics to preserve and grow your wealth.Delivered weeklyKiplinger Tax TipsTrim your federal and state tax bills with practical tax-planning and tax-cutting strategies.Sent twice a weekKiplinger Retirement TipsYour twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirementSent bimonthly.Kiplinger Adviser AngleInsights for advisers, wealth managers and other financial professionals.Sent twice a weekKiplinger Investing WeeklyYour twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.Sent weekly for six weeksKiplinger Invest for RetirementYour step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.Florida has long defined its tax identity around one promise — no state income tax. That policy has attracted retirees, business owners and high-earning professionals for decades. Property taxes, however, remain one of the primary ways local governments fund schools, police, fire departments, and infrastructure.A proposal moving through the Legislature, House Joint Resolution 203, which passed the Florida House on February 19, would ask voters to approve a constitutional amendment eliminating certain city and county property taxes on homes that qualify for Florida’s homestead exemption. School taxes would still apply.If the measure clears the Senate, it would appear on the state's November 2026 ballot. If approved, it would authorize a 10-year phaseout of certain local property taxes beginning January 1, 2027.Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail."We are advancing historic property tax relief by allowing voters to eliminate the non-school portion of the homestead property tax. Floridians work hard for their money, and they deserve to keep more of it." House Speaker Daniel Perez stated in a release regarding affordability measures and the state budget.As Kiplinger has reported, Gov. Ron DeSantis has previously expressed support for eliminating Florida's property taxes.Florida’s tax structure makes this proposal especially consequential. Because the state doesn't levy a personal income tax, property and sales taxes carry more weight in local budgets than they do in many other states. If one of those pillars shifts, the remaining revenue sources must absorb more of the load — whether through higher sales taxes, expanded taxable goods and services, or adjustments to local spending.That dynamic can become more pronounced during economic downturns, when sales tax collections can decline and local budgets tighten.What does all of this mean for you and your property tax bill? Here's more of what you need to know.Consider a Florida homeowner with a $400,000 primary residence. With an effective property tax rate between roughly 0.8% and 1%, depending on county millage rates, that homeowner might owe approximately $3,200 to $4,000 per year.In many counties, about 40% to 50% of that bill supports public schools. The remaining funds support city and county services, like police and fire protection, road maintenance, parks, and infrastructure.If the city and county portion were eliminated, the annual bill could drop by roughly half — potentially from about $4,000 to closer to $2,000, depending on local rates.But the services funded by that portion would still require revenue.Homeowners with higher property values would likely see the largest dollar savings because property taxes are tied to assessed value.If replacement revenue relies more heavily on consumption taxes, however, the impact could look different. Households that spend a larger share of their income on taxable goods, as well as renters who do not receive direct property tax relief, could feel more of the shift.Sales tax collections can fluctuate with economic cycles, making them less predictable than property tax revenue.Cities still must repair roads, pay emergency workers, and maintain public infrastructure. Those costs don't disappear.If one funding source shrinks, another must fill the gap.Possible replacement options could include:If local governments trim spending, residents could notice changes in emergency response coverage, infrastructure maintenance timelines or access to community services.Opponents of the proposal argue that shifting revenue away from property taxes could create budget gaps that force difficult tradeoffs between service levels or alternative taxes.During floor debate, State Rep. Rita Harris (D-Orlando) reportedly said of the proposal, "We are defunding the police. We are defunding the fire. We are defunding the garbage. We are defunding the schools. We are defunding the waste management. We are defunding people cutting your trees during storm [season]. We are defunding the state of Florida."Whatever happens, at its core, the measure represents a recalibration of Florida’s tax structure and could change how local government is funded.Florida House Speaker Perez has reportedly described HJR 203 as "the most aggressive legislation ever passed by a legislative chamber on property taxes in the history of the United States."But the proposal must be taken up by the Florida Senate, which could advance a revised version this legislative session.If both chambers ultimately approve the joint resolution, the constitutional amendment would appear on the November 2026 state ballot and require at least 60% voter approval to take effect.In the meantime, if you're a homeowner dealing with high property taxes, you can:For financially proactive households, the key question is not only whether property taxes decline. It is how the state replaces that revenue and how that shift could affect long-term housing costs and the services communities rely on.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.Chrissy Paradis is a Raleigh-based writer and multimedia producer specializing in retirement and tax planning for pre-retirees and retirees. She develops radio and digital content for nationwide audiences, covering retirement income, portfolio strategy, long-term care, and healthcare costs. With more than a decade of experience in broadcast journalism, she writes about financial issues affecting everyday investors. She holds a B.A. in Communication with a concentration in Media and a Paralegal Certificate from North Carolina State University.

The Kiplinger Letter The artificial intelligence arms race hinges on unprecedented demands for computing power and electricity. Could anything change that? The paychecks may stop, but the income shouldn't. Master the art of the "income machine" to fund your dream retirement. Investors looking for higher yields might want to consider these hybrid products, which blend the possibility of better returns with less downside risk than traditional investing. If you miss your RMDs, you could face a hefty fine. Here are four ways to stay on top of your payments — and on the right side of the IRS.

State Taxes If your Michigan tax refund hasn’t arrived, you’re not alone. Here’s what "pending manual review" means and how to verify your identity if needed. Large unrealized capital gains can create a serious tax headache for retirees with a successful portfolio. A tax-aware long-short strategy can help.

Retirement Taxes With the new "senior bonus" hitting bank accounts this tax season, your retirement refund may be higher than usual. Here's how to reinvest those funds for a financially efficient 2026. Retirement Even in retirement, some income sources can unexpectedly raise your federal and state tax bills. Here's how to avoid costly surprises.

State Tax From New York to Oregon, your state income tax refund could be delayed for weeks. Here's what to know. Retirement Even modest changes in retirement income can raise Medicare premiums under IRMAA. Here’s how a small increase can affect your retirement costs. Rounding Tax A new era of "Swedish rounding" hits U.S. registers soon. Learn why the nickel might be on the chopping block, and how to save money by choosing the right way to pay.