Governor Ron DeSantis Proposes $1,000 Property Tax Rebates for Florida Homeowners Executive Office of the Governor

Property tax in Florida is a county tax that is based on the assessed value of your home. On Jan. 1, property appraisers go through and update the appraised market value of every house. On average, the tax rate is about 0.91% of the assessed value of the property, but those rates ultimately depend on what county you live in, according to AARP. Florida doesn’t tax personal income tax, distributions from pensions, 401(k)s, 403(b)s or IRAs, so you don’t have to worry about paying taxes on those. Each sale, admission, storage, or rental in Florida is taxable, unless the transaction is exempt.

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These measures are part of a broader strategy by lawmakers to offer Floridians more consistent, practical savings on everyday purchases throughout the year. State officials say the broader window allows shoppers to plan purchases and relieve some financial strain as the back-to-school season begins. Gov. Ron DeSantis signed House Bill 7031 into law on June 30, 2025, with a $1.3 billion tax package within the state’s $117 billion budget. Read more about Governor DeSantis’ tax policy on Fox Business and Holland & Knight. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. On the bright side, you can buy a flag in Florida—either the U.S. flag or that of the state—without paying any tax at all.

• You might also have deductions for health insurance, retirement contributions, and other elective benefits.
• Constitutional amendments must be clearly worded, and the phrasing can significantly influence voter behavior.
• While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
• We believe everyone should be able to make financial decisions with confidence.
• In other words, if you move to Florida from a state like California that has an income tax and you make the same salary, your Florida paychecks will be bigger than your California paychecks were.
• The 37-member bipartisan committee is gathering input from homeowners, local governments, businesses, and other stakeholders.

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The total tax rate is 7.44%, with state tax accounting for 4.92% of that, and gross receipts taking up the rest of the 2.52%. However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient. Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more. The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.

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Many homeowners miss exemptions or fail to challenge incorrect assessments. Florida leaders have floated several creative alternatives to sales tax increases, though none would likely generate enough revenue on their own to replace property taxes entirely. Property taxes currently retained earnings generate approximately $55 billion annually across Florida, funding everything from public schools to police departments. According to the Florida Policy Institute, property taxes make up about 50-60% of public school funding, 18% of county budgets, and 17% of city budgets statewide.

The significant disparity in tax rates across states underscores the complex tax and regulatory environment governing distilled spirits. The House tax and spending bill leaves in place a long-standing provision that exempts credit unions from federal and state income tax, allowing them to compete unfairly with banks and, increasingly, to buy them. Localities can add as much as 2%, and the average combined rate is 6.98%, according to the Tax Foundation. Higher taxes on commercial properties, corporate income, or business transactions.

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Stay engaged, ask questions, and make sure your voice is heard in this historic debate. The debate ultimately comes down to competing visions of Florida’s future. Supporters envision a tax-free haven that attracts unprecedented growth and prosperity. Critics worry about sacrificing the public investments that made Florida attractive in the first place – quality schools, safe communities, and well-maintained infrastructure. The campaign leading up to the vote will likely be expensive and contentious.

HB 7031 also revises property tax procedures, increasing filing fees for Value Adjustment Board petitions and updating the appeals process. Notably, it introduces enhanced notice requirements and options for electronic hearings. Deadlines for contesting Accounts Receivable Outsourcing tax assessments in circuit court are clarified, which provides further certainty for taxpayers and local governments.There are other provisions and nuances in the new legislation.

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Real property refers to land, buildings, fixtures, and all other improvements to the land. Ad valorem taxes are levied annually based on the value of real estate property and tangible personal property. Non-ad valorem assessments are also made on real property for essential services, such as fire protection and garbage collection. Because property tax is only collected at the county level in Florida, it ranges significantly depending on where you live. In Miami-Dade County, for example, effective rates are 0.85% of home value.

Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections. Property tax elimination would likely increase home values, as the annual cost of ownership decreases. However, this could be partially offset by higher sales taxes and potential service cuts. The overall effect depends on how buyers weigh ongoing tax savings against other costs and quality-of-life factors in their purchasing decisions. Economists estimate Florida’s sales tax would need to increase from 6% to approximately florida income tax 11-12% to replace homestead property tax revenue. The final approach could involve a combination of sales tax increases, other revenue sources, and spending cuts rather than relying solely on sales tax.