Watching your home value soar is a great feeling for many homeowners. However, getting hit with a much higher property tax bill as a consequence is not as pleasant. In response to homeowners’ outrage over rising levies in Florida, where property taxes have increased sharply in recent years alongside skyrocketing real estate demand, Republican lawmakers are taking action. Governor Ron DeSantis has recently begun advocating for a constitutional amendment to abolish property taxes altogether in the state.
Florida homeowners have experienced some of the most significant increases in property taxes across the nation. A Redfin report indicated that the median property tax bill in Jacksonville and Tampa surged nearly 60% from 2019 to 2024. Similarly, homeowners in Miami and Fort Lauderdale faced a 48% increase during the same period. According to property data firm CoreLogic, the median property tax bill for Florida homeowners jumped by 47.5% between 2019 and 2024.
Nationwide, median property taxes climbed from $2,287 to $2,826 from 2019 to 2023, marking a 23.6% increase. Florida’s average effective property tax rate is 0.79% of a home’s assessed value, slightly below the national average. Typically, real property taxes as a share of owner-occupied housing values are higher in the Northeast, according to a Tax Foundation analysis of 2023 rates.
For a visual representation of property tax rates by state, you can hover over the map below. Among the states, New Jersey, Illinois, and Connecticut had the highest rates, while Hawaii had the lowest at 0.27%. Some Mountain states, such as Colorado and Nevada, also reported low rates.
Older homeowners have shared with Business Insider that the rising taxes, combined with escalating home repair and insurance costs, are especially difficult to manage, particularly for those on a fixed income. Florida is home to many retirees who own property, and the state has also seen a significant spike in insurance costs, adding further financial strain on homeowners.
Property taxes are essential for funding critical local services and infrastructure, which include schools, police and fire departments, and roads. In Florida, where there is no personal income tax, locally imposed property levies generate about $50 billion in annual revenue. The Florida Policy Institute has reported that property taxes account for between 50% and 60% of school district funding, 18% of county revenue, and 17% of municipal revenue.
Without property taxes, the state would need to nearly double its sales tax to 12% to maintain sufficient revenue, according to the Institute’s findings. Florida would become the first state in the U.S. to abolish property taxes, although other states have attempted similar reforms. For instance, voters in North Dakota rejected a ballot measure last year that sought to eliminate property taxes based on a home’s assessed value.
