Florida Eliminating Property Taxes? Here’s What’s Actually On the Table

Florida flirting with the idea of getting rid of property taxes is the kind of headline that makes homeowners cheer and local governments break into a cold sweat.

But “Florida is eliminating property taxes” is not a done deal today. What’s happening right now is a push in Tallahassee to put a constitutional amendment on the November 2026 ballot that would phase out most non-school property taxes on homesteaded primary residences over time.

If you own (or want to buy) in Boca Raton, Delray Beach, or Highland Beach, this matters—because property taxes are a real monthly-carry-cost driver, and any major shift can impact demand, pricing, and even what it costs to sell.

What Florida Is Proposing: Eliminating Non-School Property Taxes on Homesteads

The centerpiece proposal is CS/CS/HJR 203, a Florida House joint resolution proposing a Florida Constitution amendment that would:

Increase the homestead exemption for non-school property taxes by $100,000 per year for 10 years, starting in 2027
Ultimately make homestead property exempt from all non-school ad valorem taxes beginning 2037 (school district taxes would still apply)

In plain English: if you live in your home as your primary residence and have a homestead exemption, the plan aims to steadily reduce (and eventually eliminate) the county/city/special district portion of your property tax bill—not the school portion.

Where it stands right now (as of Feb. 25, 2026)

The Florida House passed HJR 203 and related proposals have been widely reported as moving through the process.
A companion measure is also tracked in the Florida Senate (Senate bill page shows it has been received).
To become law, it would need to clear the Legislature and then be approved by 60% of voters (constitutional amendment threshold) in November 2026.

So: this is real, it’s moving, but it’s not guaranteed—and there’s a lot of political oxygen being consumed by the “how do we pay for local services?” question.

Why This Is Such a Big Deal for Florida Homeowners

1) It would meaningfully lower the cost of ownership (for primary residents)

If your escrow payment makes you wince every month, you already know why this proposal is popular. Reducing non-school property taxes on homesteads would lower ongoing carrying costs for many owner-occupants over time.

2) It could reshape affordability in high-cost coastal markets

In luxury and coastal markets like Boca Raton, Delray Beach, and Highland Beach, purchase prices are only half the story—the other half is taxes + insurance + HOA/condo fees.

If property taxes drop for homesteaded owners, some buyers may:

Qualify for more home
Feel more comfortable stretching into a higher price point
Be more willing to buy rather than rent

That could add demand pressure in already constrained inventory pockets.

3) It creates a bigger gap between homesteaded owners and everyone else

This proposal is primarily designed for primary residences with homestead exemptions. Investors, second-home owners, and many corporate/LLC-held properties wouldn’t benefit the same way.

That means the market could split harder into:

Homestead buyers (potentially lower taxes over time)
Non-homestead buyers (not getting the same benefit)

In luxury coastal Florida—where second homes are common—that distinction matters.

The Part No One Wants to Talk About: Replacing Lost Revenue

Property taxes fund a huge share of local services—think police/fire, infrastructure, parks, sanitation, and more. That’s why economists and policy groups are waving caution flags and local governments are nervous.

How big is the potential revenue hole?

One widely cited estimate (Florida Policy Institute / referenced fiscal estimates) pegs HJR 203 at about $13.3 billion annually in recurring losses to local governments (excluding school districts).

That number is exactly why the “replace it with what?” debate is intense.

What replacement ideas are being floated?

One example reported alongside the broader effort: a proposal involving a real estate transaction fee concept intended to help counties offset losses. Whether that idea survives, changes, or gets replaced is the real chess match here—because voters might love “lower property taxes,” but they don’t love potholes, slower emergency response, or higher fees showing up somewhere else.

What This Could Mean for Boca Raton, Delray Beach, and Highland Beach Real Estate

Buyers: expect confusion, then opportunity

If this heads toward the ballot, buyers will ask:

“Should I wait?”
“Will my taxes really be lower?”
“Does this apply to me if I’m buying a second home?”
“What if the county raises fees instead?”

Your advantage as a buyer is not guessing—it’s modeling scenarios:

Today’s taxes (non-homestead vs homestead)
Potential future reductions (if approved)
“Replacement revenue” risk (fees, assessments, new taxes)

Sellers: you may get a marketing tailwind

If the market believes ownership costs are trending down for homestead owners, that’s a psychological boost—and psychology absolutely moves housing markets.

For sellers, it becomes another talking point:

“Florida continues pushing tax relief”
“Lower long-term carrying costs for primary residents”
“More affordability runway”

Investors: this may not be your party

If the benefit is mainly for homesteaded owners, investors don’t get the same upside—yet they may still face:

Higher transaction costs (if fees become the replacement mechanism)
Other local revenue tools (fees, assessments, special districts)

So the investor math might become more conservative, especially on short-hold flips.

Local services & neighborhood quality: watch this carefully

Real estate values are heavily tied to quality-of-life fundamentals:

Roads, drainage, beach access, parks
Police/fire coverage
City services that keep communities “crisp”

If local governments lose revenue and can’t replace it cleanly, service quality could get pressured—which eventually shows up in buyer sentiment.

My Practical Take: How to Plan Without Betting Your Net Worth on a Headline

Here’s the straight talk: don’t buy or sell a home based on a proposal that hasn’t passed the Senate and hasn’t hit a ballot yet.

Instead:

If you’re a primary-home buyer, treat any future tax reduction as upside—not the basis of affordability.
If you’re a second-home buyer or investor, assume you may not benefit the same way and watch for replacement revenue (fees).
If you’re a seller, be ready to market stability and predictability: show today’s numbers, and discuss the proposal as “potential future relief,” not a promise.
If you’re choosing between communities, pay attention to local budgets and how exposed a city is to property tax shifts.

And yes—if Florida ever truly reduces property tax burdens long-term, that’s another reason demand for South Florida lifestyle markets could stay strong. But the path from “proposal” to “reality” is where all the drama lives.

Frequently Asked Questions About Florida Property Taxes

Is Florida actually getting rid of property taxes?

Florida is not eliminating property taxes today. Lawmakers are advancing proposals—most notably HJR 203—to place a constitutional amendment on the November 2026 ballot that would phase out most non-school property taxes on homesteaded primary residences over time if approved by voters.

What is HJR 203 in Florida?

HJR 203 is a proposed Florida constitutional amendment that would increase the homestead exemption for non-school property taxes by $100,000 per year for 10 years starting in 2027, and then eliminate non-school property taxes on homesteaded homes beginning in 2037 if voters approve it.

Would school taxes still apply if property taxes are eliminated?

Under the current proposal framework, school district levies would still apply. The phase-out focuses on non-school ad valorem property taxes for homesteaded primary residences.

Does eliminating property taxes apply to second homes and investment properties in Florida?

The proposal is centered on homesteaded primary residences. Second homes and many investment properties do not receive the same homestead benefits, so owners should not assume they would see identical tax reductions.

When could Florida property tax elimination start?

If a constitutional amendment passes in November 2026, the current structure of HJR 203 indicates the phase-out would begin in 2027 and reach full non-school property tax elimination on homesteaded homes by 2037.

How could eliminating property taxes affect home prices in South Florida?

If ownership costs decline for homesteaded homeowners, demand could increase—especially in high-demand areas like Boca Raton, Delray Beach, and Highland Beach. However, impacts depend on how local governments replace lost revenue and how the final legislation is structured.

Posted by The Pearl Antonacci Group on March 9th, 2026

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