DeSantis pushes plan to eliminate property taxes for 92% of Florida homeowners under new ballot proposal
Florida Gov. Ron DeSantis has unveiled a sweeping property tax proposal that would significantly expand homestead exemptions and create a pathway toward eliminating property taxes for most Florida homeowners.
The proposal, called the “Save Our Homes from Excessive Property Taxes” plan, would raise Florida’s homestead exemption from its current maximum of $50,000 to $250,000 and require lawmakers to establish a schedule that could eventually eliminate property taxes entirely on homesteaded properties. DeSantis announced the plan in Tampa and called lawmakers back to Tallahassee for a special legislative session beginning June 1 to consider placing the constitutional amendment before voters this fall.
If approved by both the Legislature and Florida voters, the proposal would represent one of the most significant changes to local government funding in Florida history, potentially saving homeowners thousands of dollars annually while forcing local governments to adapt to major revenue losses.
DeSantis says homeowners need relief
During his announcement, DeSantis argued that rising housing costs and increasing property tax collections have placed growing pressure on Florida homeowners.
“I think a lot of people need relief,” DeSantis said during a news conference in Tampa. “I think a lot of people have been wondering, where can we get it? We’re showing a pathway to be able to get that done that I think is going to be transformational for people.”
The governor noted that local government property tax collections have nearly doubled over the past seven years, rising from approximately $32 billion to $60 billion annually. His office projects collections could reach $83 billion by 2032 if current trends continue.
How the proposed homestead exemption would work
The centerpiece of the proposal is a dramatic increase in Florida’s homestead exemption.
Under the plan, the first $250,000 of a homestead property’s value would be exempt from taxation. A homeowner with a property valued at $400,000, for example, would pay property taxes on only $150,000 of taxable value.
The constitutional amendment would initially raise the homestead exemption to $150,000 beginning Jan. 1, 2027. The full $250,000 exemption would take effect on Jan. 1, 2028 if voters approve the measure.
The proposal would also require lawmakers to create a schedule that could eventually increase the exemption to $500,000 and phase out homestead property taxes entirely.
DeSantis said the initial $250,000 exemption would eliminate property taxes for approximately 60% of Florida homeowners.
According to the governor, increasing the exemption to $500,000 would expand the benefit dramatically, eliminating property taxes for roughly 92% of homeowners statewide who live in their primary residences.
“This is the one thing that we can do that is gonna make a really big difference in the lives of people,” DeSantis said.
The proposal falls short of immediately eliminating property taxes statewide but establishes a framework that could move Florida toward that goal over time.
Five key elements of the Save Our Homes plan
The governor’s proposal includes five major components beyond the expanded homestead exemption.
First, it would exempt the first $250,000 of homestead property value from taxation while establishing a pathway toward full elimination.
Second, it would require local governments to use any remaining property tax revenue solely for core public services such as education, public safety, infrastructure and natural resources.
Third, it would reduce future property tax assessment increases on businesses and provide what the administration describes as a more stable tax environment for local employers.
Fourth, it would require new Florida residents who establish residency after Jan. 1, 2027, to wait up to five years before becoming eligible for the expanded exemption.
Finally, it would establish a state trust fund that would provide grants to local governments during the transition period.
New residents could face a five-year waiting period
One of the proposal’s most unusual provisions is aimed at addressing concerns from longtime Florida residents about rapid population growth.
Under the plan, individuals who establish Florida residency after Jan. 1, 2027, could be required to maintain residency for up to five years before qualifying for the larger homestead exemption.
DeSantis said the provision is designed to prevent the tax relief measure from becoming an incentive for additional migration into the state.
“I don’t want Floridians to go and see this on the ballot and say, ‘Oh man, I really would like the property tax relief, but I don’t want the entire state of Illinois to empty out into Florida or wherever because of this,’” DeSantis said.
Early estimates suggest the proposal could generate substantial savings for homeowners.
According to Broward County Property Appraiser Marty Kiar, an analysis by his office found the initial exemption increase could save the average Broward County homeowner approximately $4,129 annually.
The study also estimated that nearly 189,000 homeowners in Broward County would pay no property taxes at all under the initial proposal.
If the exemption ultimately rises to $500,000, homeowners receiving the full benefit could save as much as $9,000 per year.
For many homeowners facing rising insurance premiums, housing costs and inflation, those savings could provide meaningful financial relief.
Local governments warn about revenue losses
While homeowners could see tax reductions, local officials and municipal organizations warn that the proposal could significantly reduce funding for government services.
Property taxes serve as the primary revenue source for many local governments, funding schools, police departments, fire rescue services, infrastructure projects, parks and other community programs.
Tampa Mayor Jane Castor warned that major reductions in property tax collections could have far-reaching consequences.
“Everything could be at risk if there are dramatic changes to property taxes,” Castor said.
She added that the city’s public safety costs alone exceed what it currently collects through property taxes.
Organizations representing local governments say eliminating or sharply reducing property taxes could create difficult budget choices.
Florida Association of Counties spokesperson Cragin Mosteller said counties remain concerned about how they would continue funding critical services if property tax revenues disappear.
“The costs counties shoulder to provide solid infrastructure, public safety, quality water, health services and more don’t go away just because property taxes do,” she said.
“Those costs don’t disappear, it just means they shift somewhere else.”
The Florida League of Cities cited an independent study that found 85 municipalities could face risks to essential services if the homestead exemption rises to $250,000. Those communities include New Port Richey, Largo, Gulfport, Coral Springs, Davie and Key West.
Lawmakers offer cautious support
Republicans hold supermajorities in both chambers of the Florida Legislature, giving the proposal a favorable path through the legislative process.
Senate President Ben Albritton signaled support for the measure, describing tax relief as an appropriate way to commemorate the nation’s 250th anniversary.
House Speaker Daniel Perez also welcomed the proposal while indicating lawmakers would closely examine the details.
“We are pleased the Governor has finally gotten around to share an actual proposal,” Perez said in a statement. “We look forward to reviewing it once we have received the language.”
Some lawmakers, however, continue to raise concerns about how smaller counties would replace lost tax revenue.
Former Republican state senator Jeff Brandes argued that the proposal places significant responsibility on future legislatures to determine how local governments will replace lost revenue.
Brandes described the proposal as “more of a plan to have a plan than it is a policy proposal.”
He warned that uncertainty surrounding future revenue streams could create pressure on municipal bond ratings and local government finances.
“Today, cities and counties control their own destiny,” Brandes said. “This would put that destiny in the hands of the Legislature.”
Brandes also suggested renters could indirectly bear some of the costs if local governments seek alternative revenue sources, potentially leading to higher rents without delivering direct tax savings to tenants.
Voter approval remains the biggest hurdle
Even if lawmakers approve the proposal during the special session, voters will have the final say.
The constitutional amendment must first receive support from at least three-fifths of both legislative chambers before appearing on the ballot. It would then require approval from at least 60% of Florida voters.
Recent history suggests that threshold may be challenging. Two previous property tax-related constitutional amendments failed despite receiving approximately 58% support from voters.
DeSantis acknowledged the political realities involved in passing such a sweeping reform.
“A lot of my friends, you know, they’re going to say, ‘Who cares? Just eliminate, they’ll figure it out, all this other stuff,’” DeSantis said. “But I think … that argument will get 50%.”
“The fact that we’re doing the phase-in, the fact that we have this fund, the fact that we’re limiting the remaining property tax of the core services, I think it answers those concerns in a really, really thoughtful way,” he said.
If approved, the measure could reshape how local governments are funded across Florida while delivering what supporters describe as historic tax relief for millions of homeowners.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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