Florida property taxes have been making headlines, and it’s completely natural for investors to ask whether these rising costs are quietly dismantling their long-term returns.
On last week’s Not Your Average Investor Show (with the 500th episode on the horizon!), we took over the new JWB studio in downtown Jacksonville to dig into whether the “tax talk” we hear matches the actual data on our balance sheets.
The Florida Property Tax Debate
What began as a study phase in early 2024 has gained significant legislative momentum in 2026. The idea of reducing or even eliminating property taxes in Florida has moved from a fringe headline to a serious proposal with real public support.
Currently, the Florida House has proposed a plan to significantly reduce or eliminate property taxes not associated with schools, while the Senate is working to ensure any changes are equitable across both urban and rural counties.
Despite the “sizzle” of these headlines, many investors are wondering: Are Florida property taxes killing rental property returns?
The short answer is no. While the tax bill is an expense that hits your bank account directly, it is only one small piece of a much larger, more profitable puzzle.
The Math Behind the Headlines
It is easy to focus on the property tax line item because it hits your bank account with a visceral “sting” through a letter in the mail. However, in a market like Jacksonville, rising taxes are often a byproduct of substantial home price appreciation.
👉 The Math Behind Rising Florida Property Taxes
Let’s look at the actual Jacksonville numbers from 2020 to 2026 to see the full picture:
| Metric | 2020 | 2026 | Impact |
| Median Home Sale Price | $249,900 | $361,000 | +$111,100 Equity |
| Avg. Property Tax Bill | $3,249 | $4,600* | -$1,400 Expense |
| Median Monthly Rent | $1,440 | $1,800 | +$4,320/yr Income |
- Equity Growth: In 2020, the median home sales price in Jacksonville was $249,900. By 2026, it rose to approximately $361,000, creating roughly $111,000 in appreciation for the owner.
- The Tax Increase: Over that same period, the average annual property tax bill increased by approximately $1,400.
- Rent Offset: Median single-family rents rose from $1,440 per month in 2020 to $1,800 in 2026. This 26% increase in rental income means the property is generating significantly more revenue to cover the higher taxes and insurance costs.
Even during a period where expenses rose faster than pro forma expectations, the average investor still came out ahead in both net income and net worth.
Evaluate the Full System
This is why it is important not to judge a rental property by one expense line, but rather to evaluate the entire “return system”.
👉 What Matters More Than Property Taxes in Rental Investing
Property taxes in Florida average about 1.3% of the purchase price, making them a relatively small component of your overall profit structure.
To maximize your success, consider focusing your energy on the factors that truly drive long-term wealth:
- The Team: Your experience is dictated by the people managing your money over a full market cycle.
- The Market: Choose areas with growing populations, which fuel your biggest profit driver: home price appreciation.
- The Full Cycle: Staying invested long-term allows the “five profit centers” of rental properties to normalize any short-term “blips” in expenses.
NOT YOUR AVERAGE INSIGHT: Reframing the Cost Mindset
Most investors expect to keep contributing to their financial future.
You contribute to a 401(k). You contribute to an IRA. You dollar-cost average into the market. Those payments are seen as discipline.
Rental properties are different because a big chunk of the contribution comes early, then the asset often helps pay for itself. So when a tax bill, insurance increase, or maintenance turn requires money out of pocket, it can feel like something went wrong.
But that is not always the right frame.
Those dollars can be viewed as going back into a leveraged, tax-advantaged asset that is still producing income, building equity, and growing long-term net worth. That’s why co-host Pablo brought up a great point:
👉A Better Way to Think About Rental Property Costs
The key is having reserves set aside so these moments do not impact your lifestyle. This insulates you from the emotion of it and allows you to see the objective truth.
In Jacksonville, even after higher taxes and insurance, the larger system has continued to work. Rents rose, equity grew, and long-term investors still came out ahead.