Lakeland-Winter Haven leads the nation as property taxes outpace home values, report finds

A new report released this month by ConsumerAffairs identifies the Lakeland-Winter Haven area as the metro where property taxes have pulled furthest ahead of home values anywhere in the United States.

Researchers examined the 100 largest metro areas in the country using U.S. Census Bureau data covering 2022 through 2024. They compared the percent change in median property taxes with the percent change in median home values, then ranked cities by the size of that difference.

"The 10 metros with the widest gap between property tax growth and home value growth are all in the South or West, with a few states featured more than once," the report reads. Florida accounts for three of those top 10 metros, while Colorado and California each have two.

In the Lakeland metro, property taxes grew 28.1% between 2022 and 2024, while home values rose 14.2% over the same period, leaving a gap of 13.9 percentage points. The report notes that the typical homeowner's tax bill jumped nearly triple the national increase of 10.6%. "No metro pulled further ahead than Lakeland-Winter Haven," the authors wrote.

The longer view tells a different story, though. From 2019 to 2024, property taxes in the area climbed 78.6% while home values rose at a similar rate of 74.1%, a gap of only 4.5 percentage points. The report concludes the recent divergence appears to be new rather than a trend that has been building for years.

Lakeland was not the only Florida metro near the top of the rankings. Jacksonville placed second on the list, Palm Bay came in at No. 6, and Cape Coral ranked 11th.

The findings land as Florida voters prepare to weigh in on property tax reform. Amendment 3, which will appear on the Nov. 3 general election ballot, would create a new homestead exemption applying only to non-school taxes. The exemption would cover the first $150,000 of assessed value in 2027 and the first $250,000 in 2028, with the amount indexed to inflation from 2029 onward.

The expanded exemption would apply to homeowners who are permanent Florida residents before the amendment's proposed effective date of Jan. 1, 2027. New residents would instead receive a five-year homestead exemption on a separate schedule, becoming eligible for the higher exemption after that period ends.

The amendment would also lower the annual assessment growth cap on non-homestead properties from 10% to 5%, and it would restrict how local governments may spend property tax revenue. Permitted uses include public safety, education, infrastructure such as roads and stormwater controls, natural resource projects like flood control, approved bond payments, retirement obligations for local government employees, and county operations.

Lawmakers have approved the proposal, but it still requires support from 60% of voters next month to take effect.