Florida Pushes to Abolish Property Taxes, These States Could Follow Soon

On The Market

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4.8 • 820 Ratings

🗓️ 27 March 2025

⏱️ 32 minutes

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Summary

Florida property taxes could drop to 0%. As the state struggles with some of the lowest affordability in the country, with home insurance almost doubling in five years and home prices increasing by more than 50% compared to pre-pandemic pricing, Floridian homeowners have seen their housing costs explode. So, what if they could save thousands of dollars a year by ditching property taxes? If Florida makes it work, this could open up the floodgates for many other states to pass similar bills. But WILL it work? A significant amount of Florida’s tax revenue comes from property taxes, so will they be efficient enough to work with a tighter budget, or will infrastructure break down due to the massive loss in government funding? And, if property taxes are eliminated, boosting affordability, could buyer demand surge as well? We ran the numbers, and the potential savings on housing costs are substantial. If Florida proves a successful 0% property tax test case, other states (including yours) could be next. In This Episode We Cover Florida’s new legislative push to abolish or reduce property taxes for homeowners How much homeowners would save every month if their property taxes were eliminated Can Florida afford to ban property taxes, and which services would be compromised if they did? States that are most likely to eliminate property taxes if Florida succeeds Serious side effects of eliminating property taxes and who pays the price And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find an Investor-Friendly Agent in Your Area How You Can Legally Minimize Rental Property Taxes as Much as Possible Dave's BiggerPockets Profile Sources of State and Local Tax Collections Know Your Numbers BEFORE You Buy with “Real Estate by the Numbers” Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-307 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Can a state just get rid of property taxes? Well, Florida is apparently testing the feasibility
0:05.8	of this bold idea, and other states like Wyoming, Kansas, Montana, North Dakota have also
0:12.4	been exploring ideas to either limit or completely abolish property taxes. And if these things
0:18.9	pass, they would, of course, have a huge impact on the way
0:22.7	the housing market works. So today we're going to explore this idea. Is it feasible? Why do it?
0:28.2	What could the impacts be? And could this be coming to a state near you anytime soon?
0:41.4	Hey, everyone, it's Dave Meyer, head of real estate investing at Bigger Pockets.
0:49.7	And today we're talking about one of the hottest topics and one of the biggest challenges in real estate today, which is property taxes.
0:55.7	If you own property already, you've probably noticed a big, potentially huge increase in property taxes in the last several years. And we don't yet actually have 2024 tax data. Reminder,
1:02.4	those are due soon, but we do have data up through 2023. And if you look at the change in property
1:08.6	taxes between 2019 and 2023 across the whole U.S.
1:13.2	The median property tax went from about $2,300 to $2,800.
1:18.9	That's a 24% increase in just four years.
1:23.3	And while this isn't the only reason by any means that housing is getting less affordable,
1:28.3	you also have to blame high mortgage rates, soaring insurance costs, higher property values,
1:33.4	all contributing to lower affordability.
1:36.1	But this tax issue is a significant component of higher housing costs in general.
1:42.0	And as such, many state and local governments are looking for ways to
1:45.5	improve home affordability. And property taxes is actually a very logical place for governments
1:52.1	to start looking because it is the element of housing affordability that they actually have
1:57.8	some control over. Insurance is private. Mortgage rates are driven by big
2:03.4	macroeconomic forces. Supply quantities are really complex and they're very slow moving. Taxes,
	...

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