A new tax reform proposal in Florida is causing heated debate. The proposed bill, sponsored by state House Rep. Ryan Chamberlin, seeks to study whether the Sunshine State can eliminate property taxes.
Data show that property taxes have been rising across the country. Over the last few years, the average tax on a single-family home in the U.S. was just under $4,000. State and local taxes continue to be among the highest tax bills people pay in the U.S. But, as in many states, property taxes in Florida are a primary source of funding for essential local government services and infrastructure.
In a message on X, formerly Twitter, Chamberlin wrote about the tax proposal: "It's Time - there's a better way. No more property taxes!”
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Since Florida is a state without an income tax, eliminating property taxes would require alternative sources of revenue. That revenue would likely come from increased sales taxes. So, the proposal has generated some controversy.
Here’s what else you need to know.
Florida sales tax increase?
The bill, which essentially advocates for eliminating property taxes and replacing them with an expanded sales tax, passed its first committee vote in the Florida House. What will happen in the legislature going forward remains to be seen.
- A main concern with the proposal is that it could lead to a considerable increase in sales taxes in Florida.
- Opponents argue that shifting to higher taxes on goods and services could disproportionately affect certain consumers, particularly those with lower and middle incomes or who do not own property.
According to local reporting, some supporters believe abolishing Florida's property taxes could help promote affordable housing and increase property ownership. They contend that doing away with property tax would alleviate the financial burden on property owners and renters.
How much is Florida property tax?
Property taxes in Florida are determined by several factors, such as the county and city where the property is located and its assessed value. Due to the absence of a state income tax, Florida's property tax rates are generally considered moderate compared to other states.
- On average, property owners in Florida can expect to pay between about 0.8% and 2.0% of their property's assessed value annually in property taxes.
- Actual property tax bills vary widely depending on the location and assessed value of the home.
- Under Save Our Homes (SOH), a property tax cap amendment to Florida's constitution, homestead property assessments can’t increase more than 3% from the previous assessment period. (The cap for non-homestead properties is 10%.)
Meanwhile, as Kiplinger has reported, Florida's current average sales tax rate of 7.02% is relatively moderate compared to other states. However, a $1.3 billion Florida tax relief bill signed by Gov. Ron DeSantis last year extended many of Florida’s numerous sales tax holidays. A new Florida sales tax holiday, which took place in January of this year, was added. Fiscal concerns make it unclear whether the extended tax holidays will continue.
Tax in Florida: What happens next?
The topic of taxes, revenue, and economic policy is complicated in many states, not just Florida. If the study is approved by the legislature, it could provide information by next year, 2025, to guide Florida property tax reform. In the meantime, Floridians face other challenges with property, including skyrocketing home insurance costs and major insurers like AAA and Farmers restricting or withdrawing coverage in the state.
It's also important to note that although some states have considered getting rid of property taxes (a similar proposal, AxMiTax, is circulating in Michigan, where homeowners face the highest property tax increase in 28 years, at 5%), no state has done so.
Related
FAQs
The bill, which essentially advocates for eliminating property taxes and replacing them with an expanded sales tax, passed its first committee vote in the Florida House. What will happen in the legislature going forward remains to be seen.
At what age do seniors stop paying property taxes in Florida? ›
Senior Exemption Information
The property must qualify for a homestead exemption. At least one homeowner must be 65 years old as of January 1.
Which county in Florida has the highest property taxes? ›
Counties with the highest property taxes in Florida include Miami-Dade, Palm Beach, and Broward.
- Miami-Dade County has a median annual property tax payment of $2,756.
- Palm Beach County has a median payment of $3,956.
- Broward County has a median payment of $3,343.
House Bill 1371, originally filed on Jan. 5, exempted $100,000 of the value of real property from being taxed. Those over the age of 65 would be qualified to be exempted from property tax up to $250,000. Related video: Florida lawmaker promises new bill would drop insurance rates like a rock.
Do you have to pay property taxes in Florida after age 65? ›
Certain property tax benefits are available to persons 65 or older in Florida. Eligibility for property tax exemptions depends on certain requirements. Information is available from the property appraiser's office in the county where the applicant owns a homestead or other property.
Will home prices drop in 2024 in Florida? ›
In general, it is expected that 2024 will be a good year to buy a home in some areas of the US, as experts predict that home prices will soften. However, prices are still expected to remain high or even increase in some markets.
Who is exempt from paying property taxes in Florida? ›
RELIGIOUS, CHARITABLE AND EDUCATIONAL EXEMPTIONS
Real estate owned by certain religious, charitable or educational entities that are used for religious, charitable or educational purposes is exempt from property taxation. An exemption must be applied for through the Property Appraiser's office.
What is the $5 000 property tax exemption in Florida? ›
Property to the value of $5,000 of every widow, widower, blind person, or totally and permanently disabled person who is a bona fide resident of this state is exempt from taxation. See Form DR-501. (see section 196.202, F.S.)
What is the $50,000 homestead exemption in Florida? ›
The Homestead Exemption is a valuable property tax benefit that can save homeowners up to $50,000 on their taxable value. The first $25,000 of this exemption applies to all taxing authorities. The second $25,000 excludes School Board taxes and applies to properties with assessed values greater than $50,000.
Where is the cheapest property tax in Florida? ›
Dixie County is located in the northwestern section of the state. Dixie County has the lowest median property tax which is $503. It looks like the counties in Florida with the lowest median property tax fall within the northwestern and north central part of the state, with most of them being in the Panhandle.
Florida property tax
The Florida counties with the lowest effective property tax rates are Walton County (0.56%); Monroe County (0.62%); and Jackson, Franklin, and Holmes Counties (0.64%).
What area in Florida has the lowest property taxes? ›
Walton County had the lowest property tax rate, . 69%, followed by Jackson County at . 73% and Santa Rosa County at . 77%.
Are property taxes capped in Florida? ›
In Florida, state law limits the annual increase in the assessed value, not market value, of homesteaded property to 3% or the Consumer Price Index (CPI) whichever is less. This is also called Save Our Homes. When homesteaded property is sold, that limitation is removed and the property is reassessed.
What is a full property tax exemption in Florida? ›
Exemptions you may Apply for Online. Every person who owns and resides on real property in Florida on January 1st and makes the property his or her permanent residence is eligible to receive a Homestead Exemption up to $50,000. The first $25,000 applies to all property taxes, including school district taxes.
Is there no property tax in Florida? ›
What is the Florida Property Tax Rate? Florida's average real property tax rate is 0.98%, which is slightly lower than the U.S. average of 1.08%. The average Florida homeowner pays $1,752 each year in real property taxes, although that amount varies between counties.
Is anyone exempt from paying property taxes in Florida? ›
Real estate owned by certain religious, charitable or educational entities that are used for religious, charitable or educational purposes is exempt from property taxation. An exemption must be applied for through the Property Appraiser's office. The exemption is not automatic.
Is Florida a no property tax state? ›
In addition to state income taxes, any individual who owns real property is subject to state real property taxes. Florida doesn't tax income at the state level, but Floridians are required to pay real property taxes (and other taxes) in Florida.
Are property taxes increasing in Florida? ›
Why it matters: The state's property tax spike is 10 percentage points higher than the U.S. average, adding to the rising cost of homeownership. Zoom in: Florida's median property tax increased from $2,226 in 2019 to $3,003 in 2023.
