Florida’s House has advanced HJR 203 — a proposal that could eventually eliminate most property taxes on primary homes.
It still needs Senate approval and voter support in 2026. But if it becomes law, it would mark one of the biggest tax shifts in modern state history.
Here’s what that means in plain language.
If you own your home in Florida, this could mean keeping thousands of dollars a year that currently goes to property taxes. The proposal gradually increases homestead exemptions starting in 2027. By 2037, most homestead properties would be exempt from all property taxes except school taxes.
That sounds like a clear win for homeowners.
Lower annual housing costs mean more cash in your pocket. It could also push property values higher because buyers care about long-term carrying costs. Lower taxes make homes more attractive.
But taxes don’t just disappear. They get replaced.
Property taxes fund the basics: police, fire services, emergency response, roads, parks, and local infrastructure. Lawmakers estimate local governments could lose billions in recurring revenue. Even with safeguards to protect public safety funding, communities would still face major budget gaps.
So how do governments fill the hole?
Likely through higher fees or higher sales taxes.
And that’s where the shift becomes controversial.
Sales taxes hit everyone — especially lower-income households who spend a larger portion of their income on everyday goods. Renters, who don’t benefit from property tax relief directly, could still feel the squeeze if local governments raise consumption taxes to compensate.
In simple terms: homeowners win directly. Renters and consumers may pay indirectly.
There’s also a stability issue. Property taxes are steady. Sales taxes rise and fall with the economy. During downturns, when spending slows, local governments could see revenue drop just as demand for services increases. That creates more volatility for communities.
There’s another layer investors are watching: migration.
Lower property taxes could attract more out-of-state buyers. That could drive more demand, push home prices higher, and increase affordability pressure for first-time buyers.
So is this a tax cut or a tax shift?
For homeowners, it’s likely a meaningful financial boost. For renters and businesses, the impact may show up in higher prices elsewhere. And for local governments, the long-term funding model becomes less predictable.
This proposal isn’t just about saving money on your tax bill. It’s about who carries the cost of running a community.
The real question isn’t whether taxes go down.
It’s whether they simply move — and who ends up paying.