Will a Push To Eliminate Property Taxes in Florida Draw More Buyers?

Florida Gov. Ron DeSantis recently unveiled an ambitious plan that would eliminate property taxes on the majority of owner-occupied homes in the state. But so far, real estate agents say a potential deadline to reap the benefits hasn’t had much impact on the market.

DeSantis says his Save Our Homes From Excessive Property Taxes measure would eliminate property taxes for 60% of Florida homeowners. In late May, DeSantis called for a special legislative session to put the proposal on the November ballot.

According to the proposal, second homes and commercial properties (including rentals) would still be taxed as usual, while owner-occupied homes would see their property taxes substantially reduced or eliminated.

But there’s a timely catch: If it passes, property tax relief would immediately apply only to those who can prove they owned a home when the law takes effect on Jan. 1. Homeowners who purchase their homes after the law kicks in would be required to pay up to five years of property taxes.

DeSantis’ proposal comes at a time when Florida homeowners have seen exponential increases in property taxes over the past decade, and as the state remains home to some of the riskiest markets in the country.

A May report from real estate analytics firm ATTOM found that 12 of the 50 riskiest markets—where home prices have repeatedly declined, and where underwater mortgages, unemployment, and foreclosures are rampant—are in Florida.

Potential buyers are taking a wait-and-see approach

The prospect of not paying property taxes may seem appealing, but so far, agents in Florida say their clients haven’t been moved by it.

“The conversations I’m having with buyers are still overwhelmingly about mortgage rates, affordability, homeowners insurance, and negotiating opportunities,” says Jon Brooks, founder of Momentum Realty in Jacksonville. Those factors are driving today’s market—not the possibility of eliminating property taxes.”

Jessica Julian of Douglas Elliman in Palm Beach says that she hasn’t seen buyers rushing into the market because of DeSantis’ proposal.

“That said, it has definitely become part of the conversation,” she continues. “Buyers relocating to Florida are asking more questions about long-term ownership costs, particularly property taxes and insurance, and anything that could reduce those expenses naturally gets their attention.”

Pablo Alfaro, a Compass real estate agent based in Miami Beach, agrees.

“I wouldn’t say we’ve seen a surge in buyers because of the proposal, but it has certainly sparked more conversations,” he says. “Florida has always attracted buyers for its lifestyle and favorable tax environment, and the possibility of reducing property taxes even further is something people are paying attention to.”

Even if the law doesn’t pass, Florida has the fifth-most competitive property tax rate in the country, averaging around 0.78%.

Alfaro says the proposal might incentivize moving sooner rather than later, “but most of my clients are still making decisions based on the right property, their long-term goals, and overall carrying costs, not just one potential policy change.”

Cara Ameer, a real estate agent with Coldwell Banker in Ponte Vedra Beach, anticipates there may be a scramble for property if and when the proposal passes.

“People may be scrambling once it passes to try to buy by year’s end, but inventory is typically lower that time of year,” she says. “But this legislation could motivate more sellers to put their homes on the market to capitalize on a mini-boom. It could motivate more buyers and sellers in 2027, but it’s a longer leg up to establish residency if you buy next year.”

“Property taxes have increased as much as 60% in metros such as Tampa and Jacksonville since 2019 alone,” notes Christina Rordam, a real estate agent with Florida Real Estate Investments, which has locations across the state. “This creates a scenario wherein the homeowner is paying taxes substantially higher than a few years back, with the same level of service from the government and usage by the individual.”

Rordam says that, though she hasn’t seen much increase in interest due to the proposal, she’s still in support of it.

“We have so many seniors on a fixed income, and for those households, a savings of even $500 is extraordinarily meaningful,” she says. “The middle class is closer and closer to being squeezed out of existence every day, with single-owner households and small-business owners feeling the pinch more and more.”

Not everyone is a fan of DeSantis’ plan

“Many don’t know what to believe and are afraid it’s going to really hurt the counties and local cities [with] less revenue. We are really in wait-and-see mode at this point,” says Ameer.

Jeff Lichtenstein, CEO and broker at Echo Fine Properties in Jupiter, is concerned that without property tax revenue, social services will be cut.

“Do programs like Big Brothers Big Sisters, which I’m a part of, get cut? What happens when you show up to the beach and the lifeguard isn’t there? Or the first-time homeowner who can’t afford to get in because home prices did an initial spike, and retail taxes and other taxes went up, and essential services were lost?”

We’re still several months away from learning whether DeSantis’ initiative will pass.

“If the proposal eventually becomes law, we’ll certainly evaluate its long-term impact, but I don’t think it’s creating a meaningful wave of new buyers today because most people recognize someone will ultimately have to pay for the local services property taxes currently fund,” says Brooks.

As Calli Wolff, a real estate specialist at LUXE Properties in Miami, puts it, many homebuyers are wondering whether “this is clickbait or has real potential to save them money.”

“It has increased the number of conversations with buyers who have naturally been reaching out to me and, in their minds, are also considering what that value would look like for them,” Wolff adds. “And, although premature, the tax cuts would be a huge influx of savings, especially in higher price points, and it’s causing buyers to think twice about this market.”

That’s why Sean Plunkett, an adviser with the real estate builder Triple Crown Homes in Ocala, recommends that buyers deal with what is, not what might be.

“I advise buyers to work with the costs they know today rather than the potential for a future policy change,” he says. “Buying a house should be a financially sound decision according to current rules, where any future reduction in taxes would provide extra value.”