Florida homeowners could see property taxes disappear under new proposal

Florida’s big tax change explained

Florida homeowners could soon see one of the biggest property tax changes in state history. A proposal backed by Governor Ron DeSantis would substantially reduce non-school property taxes on qualifying primary residences, while leaving school district property taxes in place.

The proposal is not yet in effect. Florida voters will decide its future in the November 2026 general election, and at least 60% must approve it. Until then, current property tax rules remain in place.

What lawmakers approved

Florida lawmakers approved a proposal called House Joint Resolution 1F during a special legislative session. The measure passed both the House and Senate and now moves to Florida voters for the final decision.

If enough voters support it, the state’s homestead exemption would increase in stages over the next few years. Supporters say the plan would provide meaningful tax relief for many homeowners while making homeownership more affordable across the state.

How the exemption would grow

The proposal would raise Florida’s non-school homestead exemption from its current structure to $150,000 in 2027, and to $250,000 in 2028. A larger exemption protects more taxable value from city, county, and special district property taxes.

However, school district property taxes will remain in place (with only the standard $25,000 school exemption applying), meaning homeowners will still owe school taxes on assessed values over $25,000.

Millions could pay nothing

Homesteaded properties with assessed values fully covered by the proposed $250,000 exemption could owe no non-school ad valorem taxes. School district taxes would remain due on assessed value above the standard $25,000 school exemption.

Florida’s Save Our Homes benefit generally limits annual increases in a homestead property’s assessed value to 3% or the change in the Consumer Price Index, whichever is lower.

Not everyone qualifies

The expanded homestead exemption would apply only to a qualifying primary residence. Vacation homes, investment properties, rental properties and commercial buildings would not receive the larger exemption.

However, the proposal would also reduce the annual assessment-increase cap for non-homestead property from 10% to 5%. People with multiple properties could claim the expanded homestead exemption only on the residence that qualifies as their Florida homestead.

New residents face a wait

People who are not permanent Florida residents by December 31, 2026 would not immediately qualify for the increased exemption. Those establishing Florida residency on or after January 1, 2027 would receive the existing homestead exemption during their first five years of residency.

After completing the five-year period, they could qualify for the increased exemption. Florida residents who qualify before the cutoff would not face that waiting period.

Why leaders support the plan

Supporters say rising home values have caused property tax bills to climb quickly across Florida. Even homeowners who bought years ago have seen their annual costs increase as property values continued rising.

Backers believe expanding the homestead exemption would ease financial pressure on families and retirees. They argue homeowners should keep more of their income instead of paying larger tax bills driven by rapidly increasing property values.

Where tax dollars go

Property taxes help pay for many local services that people rely on every day. Schools, police departments, fire rescue services, road maintenance, parks, libraries, and other community programs often depend heavily on this revenue.

If property tax collections fall significantly, local governments would need to find other funding sources or adjust spending. That poses an important financial issue beyond just homeowners’ yearly tax bills.

Fun fact: Florida’s homestead tax exemption is protected in the Florida Constitution, making it one of the state’s long-standing constitutional homeowner benefits.

Could other costs rise?

Lower property taxes do not automatically mean lower overall taxes. Local governments may need to explore other ways to replace lost revenue if large numbers of homeowners stop paying property taxes.

Some experts say that could eventually lead to higher sales taxes, increased service fees, or other local revenue changes. The exact impact would depend on future decisions made by state and local officials after any new law takes effect.

Housing market effects

The proposal would reduce non-school property taxes for many qualifying homesteads, potentially lowering ownership costs for affected residents. Its broader effect on Florida’s housing market remains uncertain.

Home prices and buyer demand would continue to depend on mortgage rates, insurance expenses, available inventory, local tax decisions and economic conditions. The five-year qualification period would also limit the increased exemption available to new Florida residents.

The vote that matters most

Before anything changes, Florida voters must approve the proposal during the statewide election on November 3. Unlike many elections, this measure requires at least 60% voter approval instead of a simple majority.

That higher requirement means the outcome remains uncertain. Until voters make their decision, homeowners should expect property taxes to continue under the current system.

What homeowners should consider

Homeowners should avoid making major financial decisions based on expected tax savings until the proposal officially becomes law. While the potential savings could be substantial, nothing changes unless voters approve the measure.

Families considering buying, selling, or relocating should continue planning based on today’s tax rules. If the proposal passes, there will be time to understand exactly how the new exemption applies to individual properties.

Discover why Ohio’s housing market is gaining strength while parts of Florida and Texas show signs of slowing and what it means for buyers and sellers.

Looking ahead

Florida’s proposal could reshape property taxes for millions of homeowners while raising important questions about how local communities will fund essential public services in the future. The measure has the potential to change housing costs across much of the state.

For now, the proposal remains a plan rather than a reality. The November vote will determine if Florida moves toward one of the largest property tax changes in its history or keeps the current system in place.

Find out how Florida’s proposed property tax changes could affect homeowners as housing costs continue to rise across the state.

Do you think this proposal would help Florida homeowners or create new challenges? Share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

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