The answer is no, not entirely. Full elimination isn’t realistic, but gradual cuts could still reshape affordability and home values.
Are you tired of paying thousands of dollars every year in property taxes? If you own a home in Florida, you may have heard Governor Ron DeSantis mention the idea of abolishing or at least reducing real estate taxes. It sounds like the solution every homeowner has been waiting for. But what would that actually mean for you, your property value, and your community?
How eliminating property taxes could impact home values. If property taxes were reduced or eliminated, your bottom line would improve immediately. For example, saving $10,000 annually on property taxes could give a buyer more room in their mortgage budget, which in turn could push up the value of your home. Investors, landlords, and homeowners would all feel the effects as real estate values shift upward.
Can the governor actually do this? Here’s where things get complicated. At the state level, property taxes don’t play a huge role in Florida’s budget. Roughly:
- 69% of state revenue comes from sales tax
- 23% comes from other sources
- 8% comes from real estate transfer taxes (fees you pay when a home sells)
“Zero property tax is appealing, but reductions are the more likely path.”
That means the state itself wouldn’t feel much pain if property taxes disappeared.
Why local governments rely on property taxes. Counties and municipalities, however, depend heavily on property taxes. On average:
- 55% of local revenue comes from property taxes
- About a third comes from other sources
- Only 9% comes from sales tax
That means schools, police and fire services, roads, and other public resources are largely funded by the very taxes being discussed. Cutting them without a replacement plan would leave major gaps in local budgets.
Change won’t happen overnight. Because of this reliance, eliminating property taxes isn’t something that can be done with a single bill or quick decision. It would require a long, drawn-out process to restructure how local governments are funded.
A complete removal seems unlikely, though reductions could happen over time, potentially making Florida more competitive with other states while still maintaining the advantage of no state income tax.
The idea of zero property tax is appealing, but it’s not something Florida homeowners should expect in the immediate future. A more realistic scenario would be gradual reductions, not a total elimination.
If you want to know how potential tax changes could affect your property’s value, or if you’d like a clearer picture of your current real estate position, feel free to reach out at (904) 405-1995 or Jeff@PursuitRealEstate.com. I’m here to help.
