Florida advances sweeping plan to eliminate property taxes for residents

Florida Gov. Ron DeSantis detailed the next regulatory steps for the state’s effort to eliminate property taxes on primary residences in Florida. "People are being pinched across the economy in a lot of things," DeSantis said on FOX Business’ "Varney & Co." Friday. "We're doing fine at the state [level], but the local property taxes are hurting people.""The reality is these local governments have overspent, and people are paying more and more for that. And at some point it's like, when is enough, enough?" DeSantis reiterated Friday that the goal is to eliminate property taxes "completely" for homesteaded residents — a move that, if adopted, would make Florida the first state in the nation to eliminate property taxes on primary residences while also having no state income tax. A TALE OF TWO FLORIDAS: REAL ESTATE INDUSTRY TORN OVER DESANTIS' PUSH TO ELIMINATE PROPERTY TAXESLawmakers are reportedly advancing a package of proposals in the Florida House that include a $500,000 homestead exemption (with a potential maximum of $1 million for seniors), a cap on assessment increases, and the option of eliminating property taxes on homesteads altogether. Florida Gov. Ron DeSantis speaks during a news conference announcing an audit of Broward County's spending, at the FDOT District 4 office in Fort Lauderdale, Florida, on July 22, 2025. (Getty Images)According to the Florida Policy Institute (FPI), property taxes generate roughly $55 billion annually and provide around 18% of county revenues, 17% of municipal revenues, and up to 60% of school-district funding in many areas. The group warns that eliminating property taxes could force a dramatic increase in other revenue sources — in some estimates, raising the state sales tax from 6% to as much as 12%.DeSantis’ office pitched the proposal in March and has since vetoed a study on property taxes that evaluates how local governments use tax revenue and what happens if they are reduced. DeSantis clarified that the tax cuts may need to be phased in and 60% of voters will need to pass the proposal on the 2026 ballot."The majority of our revenue for property tax is [from] non-Florida residents because people have second homes … and commercial property. So it ends up being about 30% of the [total property tax] revenue. Now, you may have to phase it in; there's gonna be things we're gonna do. We're sensitive to all that. I want something that can work, and I want something that can pass," DeSantis said Friday.The governor also claimed that local property tax revenue has risen significantly since the estimated $32 billion number in 2019, giving the state the ability to substantially increase its rainy-day fund.GET FOX BUSINESS ON THE GO BY CLICKING HERE"Think about it – can you have a situation where every five or six years you're increasing budgets 50, 60%? Now, part of it was, we did have a boom with COVID, everyone was rushing to Florida, [which] caused property values to go up," DeSantis pointed out."But how is it that you buy a home for $350,000 and then, four years later, they tell you it's worth a million dollars and you gotta pay more in property tax? It's not right."READ MORE FROM FOX BUSINESS