Florida’s Governor Ron DeSantis has a bold proposal to give $1,000 rebates to homeowners as property tax relief.
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These rebates, which would cover state-mandated school property taxes, would benefit over 5 million homes statewide. Checks would roll out in December 2025 and aim to ease the financial burden on residents amid soaring property values and insurance premiums.
Florida is home to three of the five major U.S. metros where property tax bills have increased the most since before the pandemic, according to a Redfin report published in October. Jacksonville’s median monthly property tax bill increased 59.6% to $228 since 2019, Tampa’s increased 56.7% to $250 and Miami’s increased 48.1% to $367.
“Property taxes effectively require homeowners to pay rent to the government,” DeSantis said in a news release, “Constitutional protections for Florida homeowners require approval of the voters in 2026. In the meantime, Floridians need relief.” He said his rebate would mark a major step toward his “long-term goal of eliminating property taxes through a future constitutional amendment.”
But not everyone is on board with the idea.
The Florida House of Representatives has pushed back by approving a plan to permanently lower the state sales tax from 6% to 5.25%, which they are calling “the largest tax cut in state history.” It would save Florida residents $5 billion annually.
DeSantis has criticized the sales tax reduction, stating, “I don’t want to reduce taxes on Canadian or Brazilian tourists. I’d rather them pay more and us pay less.”
Senate President Ben Albritton has proposed permanently cutting sales tax on clothing and shoes that cost $75 or less, “where it can help the most number of Floridians.” He also wants a research study to be done on the effects of reducing or ending property taxes on homes.
The legislative session will end on May 2, so the House and Senate have less than a month to agree on a budget.
Property taxes vital in Florida
After federal transfers, Florida’s largest source of per capita revenue is property taxes, according to the Urban Institute. The state has no personal income taxes and its tax code is considered the most regressive in the nation. Currently, property taxes contribute about $50 billion a year to the state’s budget.
If property taxes were eliminated, local governments could face a massive revenue loss. According to the Florida Policy Institute, Florida’s property taxes make up 18% of county revenue, 17% of municipal revenue, and 50%-60% of school district revenue.
These funds help pay for vital services like fire and police services, education, and safety net programs, and without them, local governments would need to find alternative ways to cover those costs.
So how would the loss of funds be made up?
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“If policymakers were to eliminate property taxes and replace them with higher consumption taxes (i.e., sales taxes), they would have to double the state’s general sales tax rate. Doing so would generate roughly $40.2 billion in the unlikely case that consumer demand remains constant,” said the Florida Policy Institute. The state’s general sales tax is currently 6%.
Replacing property taxes with higher sales taxes could worsen Florida’s already regressive tax system. Right now, lower-income households bear a larger share of the tax burden, and increasing the sales tax could make matters worse by taking a bigger chunk out of their budgets. On the other hand, wealthier residents tend to spend a smaller percentage of their income on taxable goods, meaning they’d feel less of an impact.
Nearly seven in 10 Florida voters would prefer keeping property taxes the way they are over a sales tax increase to 12%, according to a poll.
While the idea of property tax relief sounds appealing, the trade-offs are significant.
Can there be tax relief for residents while making sure the state has enough funds to support vital public services? The debate is just getting started, and the outcome will shape Florida’s fiscal future.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
