Eliminating property taxes on homesteaded properties in Florida would result in an estimated $18.5 billion loss for counties, school districts, and municipalities, according to new research from the Florida Policy Institute (FPI). The analysis shows that about 36 percent of property tax revenue at the county and school district level comes from these taxes—approximately $7.8 billion for counties and $7.7 billion for school districts. Municipalities would see a reduction of about $3 billion.
The report highlights that certain counties are particularly dependent on homestead property-tax revenue as a share of their total government income. Flagler County leads with 24 percent, followed by Martin (22%), Nassau (18%), St. Johns (18%), and St. Lucie (18%). Miami-Dade County stands to lose the most in absolute terms, with a projected loss of $899 million if such an exemption were enacted.
At the school district level, Union County relies most heavily on homestead property-tax revenue, which makes up 58 percent of its total property tax income. Other districts with high shares include Sumter (56%), Baker (55%), St. Johns (53%), and Wakulla (51%). The Miami-Dade school district faces the largest dollar loss at $977 million.
Recent months have seen state policymakers propose various measures to reduce property taxes, including complete elimination or targeted exemptions for homesteaded properties only. FPI has previously warned that such moves could severely limit local governments’ ability to fund essential services like police, fire departments, and schools.
“Eliminating property taxes, even partially through a homestead exemption, will leave local governments and school districts scrambling to balance their ledgers, whether it’s through cutting vital programs and services or by introducing or raising new fees to replace the lost revenue,” said Sadaf Knight, CEO of FPI. “There are better ways to provide relief to Floridians — ones targeted to people who need it most, and ones that set our state up for long-term shared prosperity.”
“In creating this interactive tool, we wanted to make sure that Floridians understand the true cost to communities of eliminating or cutting property taxes,” said Esteban Leonardo Santis, PhD, director of research at FPI. “Being clear-eyed about the significant cost and impacts of these major proposals is imperative, especially considering Florida will be grappling with a projected budget deficit by 2028.”
FPI’s estimates are based on preliminary 2025 taxable value data from the Florida Department of Revenue.
The Florida Policy Institute describes itself as an independent, nonpartisan nonprofit focused on improving economic mobility and quality of life across the state.