As Florida House rolls out options, Florida broker says move to end homestead property taxes could help
Mortgage costs continue to rise, affecting not only new homebuyers but also existing homeowners. For those who have escrowed property taxes and insurance, the payment they’re making now in many cases doesn’t remotely resemble the one at mortgage closing.
Taxes have increased as property values continued to grow. In some areas, many people believe those tax increases have outpaced property values. This situation leaves homeowners in a stressful position, where a larger portion of their monthly budget goes toward the house payment.
Some states are starting to push back on the rising property tax issue. One of those states is Florida, where Governor Ron DeSantis has floated the idea of either eliminating or reducing property taxes. In fact, the state’s House of Representatives on Thursday revealed several potential plans for property tax reductions, which would be voted on during the 2026 election.
One Florida broker can see the benefits of a potential plan. Elizabeth Cassidy (pictured top), loan officer with Edge Home Finance, said one of the reasons why Florida might be uniquely positioned to make this move is that so much of the state’s revenue comes from tourism dollars.
“I don't think it's a good idea or a bad idea for the economy as a whole,” Cassidy told Mortgage Professional America. “Here in Florida, we are such a massive tourist state. I mean, you can't go to a hotel even if you're hundreds of miles away from Disney World and not be hit with tourist fees and travel fees.”
A tax burden shift
One of the potential changes being suggested is phasing out non-school property taxes for homestead properties starting in 2027. Cassidy said one additional step the state could take to benefit the real estate market as a whole would be to pass some of that tax burden on to owners of investment properties.
“If we kick property taxes out, I think it'll double up property taxes on people that are buying vacation homes and condos,” Cassidy said. “That’s going to deter them from treating Florida as if it's their playground.”
The big issue Cassidy and other residents have with people buying up these investment properties is that they don’t contribute to the local economy.
“They don't do anything to stimulate our economy,” she said. “They don't do anything to help. They make money because they know that they can charge an arm and a leg for people to rent it, short-term, long-term, whatever the case may be. They don't have jobs here. They don't spend their own money here. They're literally just using Florida as an income-producing line on their budget. If we get rid of property taxes, I can't imagine we're getting rid of them for everyone.”
An increase in property taxes on investment properties could force investors to sell some of their properties, potentially opening up more inventory for first-time buyers. She said as it stands now, there are investors who scoop up properties in the state without even seeing them first.
“We can get some of our families that can't even find a house to buy, who are living in apartments, out of apartment living,” Cassidy said. “Because now those investors are like, ‘Maybe it's not worth it to own 17 investment properties in the state of Florida. Maybe I should allow the people that live there and pour into the economy to buy those starter homes or those duplexes and let their families in them, instead of using it as a portfolio builder.’
“I've had clients from California, Idaho, and Texas who just scoop up investment properties, and they don't even want to look at them. It's all about the numbers, and if the house can get adequate insurance, they just buy sight unseen all the time.”
Some potential drawbacks
While a plan that shifts the tax burden off homestead property owners is being considered, Cassidy said there are a couple of areas that would need to be addressed. One would be Community Development District (CDD) assessments, which are property taxes for funding and maintaining infrastructure in a new development.
“The problem that we're going to run into is that so many builders are trying to build here in Florida, and they have a CDD assessment,” she said. “Those builders are going to have to build the cost of those assessments into the cost of their houses, which is going to make them not as enticing as resales. That is something that is going to happen if they're getting rid of property taxes. There's no place to charge it.”
Amid an unpredictable market, Kristi Hardy of Atlantic Coast Mortgage advised borrowers to act decisively and lock in rates. She said volatility has made forecasting difficult, but a future refinance window could offer relief when rates eventually ease.https://t.co/ByT8Yc3woo
— Mortgage Professional America Magazine (@MPAMagazineUS) October 13, 2025
Another unintended side-effect of ending property taxes on homestead properties is that residents can now qualify for larger loans. While that’s good for the individual borrower, Cassidy notes that it will drive up home prices.
“If we get rid of property taxes, everyone's going to be able to qualify for more,” she said. “And what are they going to do? They're going to then turn around and buy more of a house when interest rates fall. It never means that people are going to stay in their same budget and just decide that they're going to have a cheaper house payment.”
A potential boost to investment property taxes is likely one of the few things that could slow the influx of outside investors to the state. Cassidy said no matter how high the mortgage rate is, it simply doesn’t slow them down.
“Interest rates do not scare them, because that's a tax write-off,” she said. “The property tax dollar amounts do not scare them. That's a tax write-off. But I think for the people who think that they're these cool, swagger-slinging investors, I think it might make them think twice and figure out something else to do to try to make them millionaires. But Florida's real estate playground is not one of them.”
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