Florida lawmakers are considering a proposal to eliminate property taxes through a constitutional amendment that could appear on the November 2026 ballot. This move has prompted discussion about how such a change would affect funding for public schools across the state.
Currently, Florida’s public schools receive their funding from both state and local sources. State funds are primarily generated from sales taxes, while local contributions largely come from property taxes. Local funding makes up about 46% of the Florida Education Finance Program (FEFP), which is the main mechanism for distributing money to public schools. However, the proportion of local versus state funding varies widely by district; some districts rely on property taxes for as little as 10% of their FEFP funding, while others depend on them for up to 90%.
The required local effort (RLE) system determines each county’s share based on its property values. Districts with higher property values contribute more through property taxes, whereas those with lower values receive more support from the state.
Eliminating property taxes would have significant effects statewide. Even counties that rely heavily on state aid, such as Holmes County, would face negative consequences if this source of revenue disappeared. In Walton County, nearly 90% of school funding comes from property taxes; losing this income would make it difficult for public schools there to continue operating.
Lawmakers had tasked Florida’s Office of Economic and Demographic Research (EDR) with studying the potential impacts of eliminating or reducing property taxes and providing policy options to mitigate any negative fiscal effects. However, Governor Ron DeSantis vetoed the funding necessary for this study.
Despite this setback, other analyses have been conducted. The Florida Policy Institute found that removing property tax revenue would require doubling the state sales tax in order to compensate for lost funds: https://www.floridapolicy.org/posts/eliminating-property-taxes-would-require-doubling-floridas-sales-tax-to-raise-the-same-revenue.
As legislative proposals develop further in coming months, education groups say they will provide updated information about what is at stake for students and communities throughout Florida.
“Changes to property taxes should always carefully consider the local impacts, and any changes must ensure that school funding does not suffer,” according to advocates concerned about potential cuts.
