Florida Gov. Ron DeSantis is trying to give the Sunshine State a new edge over Texas in the fight for residents, businesses, and political influence.
DeSantis is backing a proposed constitutional amendment that would raise Florida’s homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028, lowering the taxable value of qualifying owner-occupied homes, Fox News reported.
The proposal would need support from at least 60% of Florida voters to take effect.
Florida Looks For A New Edge
Texas and Florida have both used no state income tax, pro-business policies, and lower-cost reputations to attract Americans leaving higher-tax states.
But DeSantis’ proposal targets one area where Texas leaders are already working to deliver more relief: property taxes.
Supporters say a larger homestead exemption would help homeowners, retirees, and families dealing with higher housing costs, insurance premiums, and inflation. Critics argue the plan could cut billions from local governments and force cities or counties to reduce services, raise fees, or find replacement revenue.
State analysts estimate the proposal could reduce local government revenue by more than $8.4 billion annually, Fox reported.
Texas Still Has The Growth Edge
Texas has built a major growth advantage in recent years.
As previously reported by The Dallas Express, Texas now claims four of the nation’s 10 largest cities, with Houston, San Antonio, Dallas, and Fort Worth all ranking in the top 10. Fort Worth also surpassed Jacksonville, Florida, while Austin climbed to No. 12.
Texas has also continued building its business case. The state recently surpassed 3 million registered businesses, a milestone tied to population growth, corporate relocations, and a business-friendly environment, as previously reported by DX.
Dallas has also become a bigger part of the state’s financial pitch. Gov. Greg Abbott recently declared Texas “America’s financial capital” as Dallas’ “Y’all Street” continues to grow.
That momentum gives Texas a clear advantage in jobs, business formation, finance, and population growth.
Property Taxes Remain The Pressure Point
Florida’s property tax push could test whether tax policy can narrow that gap.
Texas has also moved to keep property taxes at the center of its own growth strategy. As previously reported by The Dallas Express, Gov. Greg Abbott secured 88 Republican signatures on his “Empowering Texas Taxpayers” pledge, which outlines a five-point property tax reform plan that includes local spending limits, a two-thirds voter threshold for tax increases, voter-initiated rollback elections, appraisal changes, and a possible referendum on eliminating school property taxes for homeowners.
The state’s no-income-tax advantage has helped draw residents and companies for years. But high property tax bills remain one of Texas’ biggest vulnerabilities, even after repeated attempts at relief.
If Florida can sell itself as a no-income-tax state with a lower property tax burden, the Texas-Florida rivalry could enter a new phase.
The question is whether Florida can deliver major tax relief without weakening local services, and whether Texas can keep its growth edge while advancing the property tax reforms Abbott has already put at the center of the next legislative fight.
