Florida Property Tax Changes: What Homeowners, Sellers & Investors Need to Know

Florida is considering a major change that could impact every homeowner, buyer, seller, and real estate investor.

The proposal would eliminate non-school property taxes for homestead properties.

That means:
Homeowners may no longer pay certain property taxes each year on homestead property.

But there’s a catch…

To replace that lost money, lawmakers are also discussing a 5% fee when you sell your property.

So instead of paying yearly taxes…
You may pay a large fee or “surtax” to the state when you sell, according to the bill, which also failed in the Senate.

This has sparked a lot of debate.

Let’s break it down in simple terms.

What Is Actually Being Proposed?

Right now, Florida lawmakers are exploring:

Removing non-school property taxes for homestead properties
Shifting that cost to a 5% fee at the time of sale. The state would collect this fee, shifting those funds out of the local government to the state.

Important:
This is NOT law yet. It still needs approval and could go to voters. Since both bills failed, it’s unlikely they will be on the ballot this fall unless lawmakers take it up in a special session.

The Pros for Homeowners

At first glance, this sounds great.

Lower Monthly Costs

Homeowners could:

Pay less each year
Have more money in their pocket

Easier to Afford Living in Your Home

This could help:

Fixed-income homeowners
Retirees
Families struggling with rising costs

Potential Increase in Home Values

If owning becomes cheaper:

More buyers may enter the Florida housing market
Demand could go up
Prices could rise

The Cons (What Most People Aren’t Thinking About)

This is where things get interesting.

The 5% Fee at Sale

When you sell your home in FL:

You could pay 5% of the sale price to the state.

Example:

Sell for $300,000
Pay $15,000 fee

That’s a big hit at closing.

It Could Hurt Sellers

Many homeowners don’t think about this part.

Sellers will net less money
It may discourage people from selling
It could slow down the market

Investors May Be Hit the Hardest

As an investor, this matters A LOT.

If you buy and sell often → you pay more
Flips, wholesales, and short-term deals could be affected
Your profit margins shrink

This could change how investors structure deals

What Happens to Local Governments?

This is a big concern.

Local governments rely on property taxes to fund:

Schools (partially)
Police (the bill protects their budget) and fire departments
Roads and infrastructure
Public services

If Property Taxes Go Away…

They still need money.

So what happens?

Possible Outcomes:

Higher sales taxes
New local fees
Increased utility costs
Reduced services
Delayed projects

In simple terms:
The money has to come from somewhere

Will Homeowners Really Save Money?

This is the big question.

Yes—you may save money yearly.

But:

You may pay it later when you sell
Or pay it through other fees and taxes

This is more of a “pay later” system instead of “pay now.”

What This Means for Buyers

If you’re looking to buy a home in Florida:

You may qualify for more home (lower monthly cost)
Demand may increase
Competition may increase

But you also need to think long-term:
What happens when you sell?

What This Means for Sellers

If you’re thinking about selling a home in Florida:

Timing may matter
Pricing strategy becomes more important
You need to understand your net proceeds

This is where working with the right broker matters

What This Means for Investors

This is where strategy becomes critical.

Smart investors will:

Adjust their exit strategies
Look at long-term holds vs short-term flips
Focus on cash flow deals
Find properties at deeper discounts

This Is Where I Come In

This is not a market to guess your way through.

As:

The Queen of Tax Deeds®
A Real Estate Broker in Central Florida
A Real Estate Investor since 2004

I help you understand:

Where the opportunities are
How to structure deals
How to avoid costly mistakes

How I Help You

For Buyers:

Find affordable homes
Navigate changing market conditions
Access available programs

For Sellers:

Price your home strategically
Maximize your net profit
Sell with confidence in a changing market

For Investors:

Find off-market deals
Buy tax deed properties
Build income-producing portfolios
Adjust strategies based on new laws

Don’t Wait Until the Rules Change

Markets shift.

Laws change.

Opportunities come and go.

The people who win are the ones who prepare early

Let’s Create a Strategy for You

Whether you want to:

Buy a home
Sell a property
Invest in real estate

I can help you build a plan that works in TODAY’S market—and prepares you for what’s coming.

📞 Schedule a consultation today

Final Thoughts

Florida’s proposed property tax changes could reshape the real estate market.

Lower yearly costs
Higher costs at sale
Possible impact on investors
Pressure on local governments

This isn’t just a tax change—it’s a strategy shift