Florida property tax changes are under active consideration by state lawmakers, with proposals including new exemptions, assessment caps, and potential elimination of certain property taxes for primary residences. These changes could significantly affect millions of homeowners, local governments, and essential services throughout Florida.

Overview of Florida Property Tax Changes

Florida’s property tax system is based on ad valorem taxes, which are determined by the assessed value of real property. The state currently provides homestead exemptions and limits annual assessment increases to 3% for homesteaded properties. Property taxes are a primary funding source for local services, including schools, law enforcement, and infrastructure.

According to state data, property taxes in Florida have increased by more than 40% on average across counties over the past four years. This trend has prompted lawmakers to consider a range of property tax changes aimed at providing relief to homeowners while maintaining essential public services.

Key Proposals for Property Tax Exemptions and Caps

Several significant proposals are under review in the Florida Legislature. These include:

• Property Tax Rebates: The governor has proposed a $1,000 property tax rebate for each homesteaded property, specifically targeting state-mandated school property taxes. The proposal aims to deliver relief to homeowners while ensuring continued funding for public schools.
• Elimination of Non-School Property Taxes: Lawmakers are considering a constitutional amendment to eliminate all non-school property taxes for homesteads. This change would shift the tax burden to non-homestead properties, such as second homes and commercial real estate.
• Phased-In Exemptions: Another proposal would phase out non-school property taxes for homesteads over a decade by increasing the homestead exemption by $100,000 each year.
• Portability Cap Removal: The removal of the $500,000 cap on portability of accrued property tax benefits for non-school taxes is also under consideration.
• Assessment Increase Limits: Lawmakers are discussing modifications to current assessment increase limits, such as capping increases at 3% over three years instead of annually.
• New Exemptions for All Properties: A new $100,000 exemption from assessed value for all real properties is being proposed.

Over 5.1 million homesteaded properties could be affected by these proposed changes, according to official state estimates. Eliminating property taxes for primary residences could result in approximately $18.5 billion in lost revenue for local governments.

Impact on Local Governments and Essential Services

Florida property tax changes would have a direct impact on local government budgets. Property taxes fund critical services such as law enforcement, public education, and infrastructure maintenance. According to expert analysis, eliminating or reducing property taxes for primary residences would require alternative revenue sources or a shift in the tax burden to other property owners.

Officials report that local governments are closely monitoring the proposed changes due to the potential for significant revenue impacts. The loss of property tax revenue could affect the funding available for essential services, especially if alternative sources are not identified.

Potential Revenue Shifts

Experts indicate that shifting the tax burden to non-homestead properties could lead to higher taxes for owners of second homes, rental properties, and commercial real estate. This approach may also create disparities in tax obligations among different property types throughout Florida.

Concerns About Equity and Affordability

Some experts caution that large exemptions or rebates may disproportionately benefit wealthier homeowners, while others argue that these measures are necessary to address rapid increases in property values and affordability challenges. The complexity of Florida’s property tax system makes it difficult to implement sweeping reforms without unintended consequences.

Legislative Process and Voter Approval

Major property tax changes in Florida, especially those involving constitutional amendments, require voter approval. Proposals currently under consideration could appear on the 2026 ballot if advanced by the Legislature. According to official sources, any changes to property tax exemptions or caps would need broad public support to become law.

Florida’s strong revenue position in recent years has enabled lawmakers to consider rebates and expanded exemptions. However, experts continue to debate the long-term sustainability of these measures, particularly given the reliance on property taxes for local government funding.

Recent Law Changes Affecting Property Taxes

In addition to the proposed exemptions and caps, the state has enacted a law eliminating the sales tax on commercial real property leases effective October 1, 2025. This change is designed to reduce costs for businesses and further adjust the state’s approach to property-related taxation.

Broader Context and National Trends

The proposals for Florida property tax changes reflect a broader national trend of states reconsidering property tax structures in response to rising home values and affordability concerns. According to official reports, many states are exploring new exemptions, caps, and alternative revenue sources to address the challenges faced by homeowners and local governments.

Local governments throughout Florida are carefully evaluating the potential impact of these proposals, particularly regarding funding for schools, law enforcement, and other essential services. Details may be updated as the legislative process continues and additional information becomes available from official sources.

Frequently Asked Questions About Florida Property Tax Changes

What are the main Florida property tax changes being considered?

Lawmakers are reviewing proposals for new exemptions, assessment caps, and the possible elimination of certain property taxes for primary residences. These changes could affect millions of homeowners and local government budgets.

How much could homeowners save from proposed property tax exemptions?

If approved, homeowners could receive a $1,000 rebate and benefit from increased homestead exemptions. The exact savings would depend on the final details of the legislation and each property’s assessed value.

Are there any changes to property tax assessment limits in Florida?

Yes, lawmakers are considering modifying the current 3% annual assessment increase cap to a 3% cap over three years. This would slow the rate at which property tax assessments can rise.

Can you explain how Florida property tax changes might affect local services?

Reducing or eliminating property taxes for primary residences could lower revenue for local governments. This may impact funding for schools, law enforcement, and infrastructure unless alternative revenue sources are identified.

Where are Florida property tax changes most likely to have an impact?

The proposed changes would affect homesteaded properties throughout Florida. Local governments in all counties could see changes in revenue and service funding if the proposals are approved.