Shock as Southern state plots ditching property taxes to help curb crippling homeowner costs

One state government in the south may have just found a way to ease the skyrocketing costs of homeownership.

Florida leaders are considering eliminating property taxes altogether as residents struggle with soaring mortgage and insurance cost — and the idea is gaining traction among both lawmakers and homeowners.

In this month’s legislative session, eliminating property taxes has been a major point of discussion. Florida would be the first state in the nation to do it.

Florida’s Gov. Ron DeSantis says residents need the cut since the cost of owning a home has become too expensive for many.

According to Redfin, median home prices in Florida have quadrupled in the Miami metro area since 2012 and tripled in the Orlando and Tampa metro areas. 

Fixed income households and retirees are being hit the hardest with increased housing costs and killing the rising property tax would help lower their bills.

In 2023, Florida’s effective property-tax rate ranked 28th nationally says a report by the Tax Foundation. But that has risen, along with residents in the state paying the highest insurance rates and amongst the highest mortgages. 

As home prices have skyrocketed, the total amount of Florida property tax collected has doubled over the past decade. It was more than $55 billion in the 2024-25 fiscal year.

Florida resident Zoe Tosteson Losada tells the Wall Street Journal the home she purchased in Palm Beach Gardens for $809,000 in 2022 was where she planned to retire. 

One year later, her annual property-tax bill jumped from $6,000 to $10,700, and now she fears she and her husband Freddy Losada will have to sell the house.

‘I will not be able to retire in this house,’ she said.

‘I’m the only one working. We’re losing money every day.’ 

Florida realtor Jeff Lichtenstein, CEO of Echo Fine Properties in Palm Beach Gardens, says ditching property tax would help homeowners but warns of potential trade-offs.

'Inflation itself, taxes and insurance are driving up home owner costs. Each year, you see a bigger jump in taxes relative to inflation,' he says. 

'Insurance has gone up for a multitude of reasons. There are more storms and that has brought costs up. There are more HOA and insurance costs because of the Surfside condo collapse. Mortgage rates are higher for new buyers. It all adds up.'

While Lichtenstein believes lawmakers should explore the idea, he says that assessing the full impact will take time — as lost state income could mean cuts to public services. 

'I’m all in favor of low taxes that would help homeowners but need to see how it plays out. Do we end hurting schools, roads, and other essential services that are needed?'

Florida has no personal income tax for residents, so it’s mostly property taxes that pay for police and parks. For schools, property taxes foot over half the revenue.

DeSantis wants an amendment abolishing or reducing property taxes on the ballot in 2026.

In order to pass, it would need 60 percent approval from voters.