Florida Is Rethinking Property Taxes. Could Your Bill Disappear?

Name: Sandra L Stearns CPA & Associates
Address: 9609 Leeside Court, Windermere, Florida, 34786
Telephone: (407) 450-3413

For decades, Florida’s tax appeal has been straightforward: no state income tax, robust tourism revenue, and relatively moderate property taxes. However, as housing costs and insurance premiums have soared over the past few years, that "moderate" property tax burden has grown considerably heavier. At Sandra Stearns CPA in the greater Orlando area, we frequently hear from both families and small business owners feeling the squeeze of rising property valuations on their annual tax bills.

Now, this familiar formula may be in for a massive shift. Recently, Florida lawmakers and Governor Ron DeSantis advanced tax proposals ranging from consumer tax breaks to one of the most ambitious property tax overhauls nationwide. If Florida successfully slashes property taxes, it could set a precedent that other fast-growing states will closely watch and potentially follow.

The Targeted Tax Package That Passed

Early in the legislative session, there was considerable chatter about cutting Florida’s gas tax, but lawmakers ultimately opted for a different route.

The final tax package approved by the Legislature focuses on targeted reductions rather than broad cuts. This includes sales-tax holidays and exemptions for items like outdoor recreation goods, hunting and fishing equipment, aviation fuel, and select business taxes. The state is also continuing discussions on how tourist-development tax revenues might be leveraged for broader community relief.

While those measures are a welcome bonus for certain industries and consumers, they aren't the sweeping financial overhaul most property owners are looking for. They do, however, represent a continued effort to provide taxpayer relief without introducing an income tax or spiking state debt.

The Bigger Play: Expanding the Homestead Exemption

The real centerpiece of Florida's tax debate right now is property taxes.

In late May and early June, lawmakers approved a proposed constitutional amendment that will go to voters in November 2026. If passed, it would dramatically expand the state’s homestead exemption. Currently set at $50,000, the exemption would leap to $150,000 in 2027 and eventually to $250,000 by 2028. For many Florida homeowners, this adjustment could wipe out most, if not all, of their non-school property taxes.

Proponents view this as a necessary lifeline for residents dealing with rapid property value inflation. Conversely, critics are raising red flags about the potential strain on local budgets. Property taxes fund vital community services, from police and fire departments to local government operations and road maintenance.

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Could Florida Eliminate Property Taxes Entirely?

As bold as a $250,000 exemption sounds, the conversation has stretched even further.

Governor DeSantis has publicly discussed long-term visions that could one day eliminate property taxes on primary residences altogether. While some legislative proposals exploring this concept stalled this year, the seed has been firmly planted in state politics.

The financial reality of such a move, however, remains complex. According to analysis from the Tax Foundation, completely replacing property tax revenue would demand a massive restructuring of Florida's tax system. To fund local infrastructure and schools without these property levies, the state would likely have to drastically increase its reliance on sales taxes or uncover entirely new, sustainable revenue streams.

A Catch for New Residents

If you are considering relocating your family or business to the Sunshine State, timing might be everything. One controversial aspect of the current proposals is that the largest financial benefits may be reserved for those who are already established here.

Under the discussed frameworks, individuals who establish Florida residency before the end of 2026 could qualify for these expanded exemptions much faster than those who move in later. Supporters argue this rightly protects long-time residents who have weathered recent cost-of-living spikes, while critics warn it could create an unequal, two-tier tax system for neighbors living in the exact same communities.

Navigating Florida's Shifting Tax Landscape

The 2026 ballot will be a defining moment for Florida taxpayers. If voters approve these sweeping changes, it could fundamentally reshape how local governments operate and how residents manage their wealth. It also serves as a strong signal nationwide: as property values climb, finding equitable tax relief is a growing priority for both individuals and small business owners.

With over 38 years of tax and accounting expertise, Sandra Stearns CPA is dedicated to helping clients navigate changing tax landscapes. Whether you want to understand how these potential property tax changes impact your long-term financial goals, or you need proactive tax planning and virtual CFO support, contact our Orlando team to schedule a consultation today.

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