Florida Proposal to Eliminate Property Taxes on Homesteaded Homes

What Homeowners Need to Know

While much of the attention has focused on increasing Florida's homestead exemption from $50,000 to as much as $250,000, the proposed constitutional amendment goes further by directing the Florida Legislature to develop a schedule for the eventual elimination of property taxes on qualifying homesteaded properties. The amendment itself does not eliminate those taxes immediately but establishes a framework for future legislative action.

Several proposals being discussed in the Florida Legislature focus on reducing or eliminating non-school property taxes on homesteaded properties, potentially beginning later this decade if voters approve a constitutional amendment. While the details are still evolving, the concept has generated discussion among homeowners, economists, and local governments about how the change could affect affordability, government budgets, and Florida’s real estate market.

Understanding how homestead properties work and how property taxes are currently structured can help homeowners and buyers evaluate what this proposal could mean.

June 2026 Update: Legislature Approves Constitutional Amendment for November Ballot

In a special legislative session held in early June 2026, Florida lawmakers approved a proposed constitutional amendment that would dramatically expand the state's homestead exemption for qualifying primary residences. The proposal will now appear on the November 2026 statewide ballot, where it must receive at least 60% voter approval to become part of the Florida Constitution.

If approved by voters, the amendment would:

  • Increase the current homestead exemption from $50,000 to $150,000 beginning January 1, 2027

  • Increase the exemption again to $250,000 beginning January 1, 2028

  • Index the exemption for future inflation adjustments based on the Consumer Price Index (CPI)

  • Continue to exempt school district property taxes from the expanded exemption

  • Reduce the maximum annual assessment increase on many non-homesteaded properties from 10% to 5%

Unlike some earlier concepts that discussed eliminating property taxes entirely on homesteaded properties, the proposal approved by lawmakers focuses on a significantly larger homestead exemption while preserving school taxes.

What Is a Homesteaded Property in Florida?

A homesteaded property is a home that qualifies for Florida’s Homestead Exemption because it serves as the owner’s primary residence. The homestead designation provides important tax protections and benefits to Florida homeowners.

To qualify for homestead status, a homeowner must:

  • Own the property

  • Live in the property as their permanent residence

  • Be a Florida resident

  • File for the Homestead Exemption with the county property appraiser

Homestead status only applies to primary residences. It does not apply to second homes, vacation properties, or rental properties.

Once approved, the property receives several important tax protections.

New Florida Residents

The proposal also includes a residency requirement for certain newcomers.

Individuals who establish Florida residency on or before December 31, 2026, would generally be eligible for the expanded homestead exemption when it takes effect. Those who become Florida residents after that date would be eligible for the existing homestead exemption but would generally need to satisfy an additional waiting period before qualifying for the full expanded exemption under the proposal.

Homestead Exemption

Florida currently offers a $25,000 exemption on the first $50,000 of assessed value, and an additional $25,000 exemption on values between $50,000 and $75,000 for non-school taxes. These exemptions reduce the taxable value of a home.

Save Our Homes Assessment Cap

Homesteaded properties are also protected by Florida’s Save Our Homes law, which limits annual increases in assessed value to 3% or the rate of inflation, whichever is lower. This protection prevents dramatic increases in property taxes when housing prices rise rapidly.

These protections are one reason many Florida homeowners choose to declare homestead status as soon as they establish permanent residency.

What Does “Permanent Residence” Mean in Florida?

For homestead purposes, a permanent residence is the place where a homeowner lives with the intent to make it their primary and long-term home.

A property is generally considered a permanent residence when the homeowner:

  • Lives in the home most of the year

  • Intends for the property to be their primary residence

  • Uses the address for official records such as a driver’s license, voter registration, and tax filings

  • Does not claim residency or homestead benefits in another state

To qualify for the homestead exemption, the home must be the owner’s permanent residence as of January 1 of the tax year in which the exemption is requested.

County property appraisers may verify residency using documentation such as voter registration records, vehicle registrations, driver’s licenses, or other official records tied to the property address.

Does This Amendment Eliminate Property Taxes?

This is probably the biggest point of confusion among Florida homeowners.

No—not immediately.

If approved by voters, the amendment would:

  • Increase the homestead exemption to $150,000 on January 1, 2027

  • Increase it again to $250,000 on January 1, 2028

  • Continue to exempt school property taxes

  • Require the Florida Legislature to create a future plan for eliminating homestead property taxes

The amendment itself does not set a date when all homestead property taxes would disappear.

How Florida Property Taxes Work Today

Property taxes in Florida fund multiple levels of local government services. When homeowners pay their annual tax bill, the revenue is typically distributed across several taxing authorities.

These commonly include:

  • County government services

  • City or municipal services

  • School districts

  • Special districts such as fire protection, water management, and infrastructure

Property taxes are one of the primary funding sources for local governments throughout Florida. Because of this, any proposal to significantly reduce them raises questions about how those services would continue to be funded.

What the Current Proposal Would Do

The proposal approved by the Florida Legislature would substantially increase the amount of a home's value that is exempt from non-school property taxes.

If approved by Florida voters:

  • The homestead exemption would increase from $50,000 to $150,000 on January 1, 2027

  • The exemption would increase again to $250,000 on January 1, 2028

  • Future increases would be adjusted for inflation using the Consumer Price Index (CPI)

  • School district property taxes would continue to apply

  • Certain non-homesteaded properties would receive additional protection through a reduced annual assessment cap of 5% instead of the current 10%

For many homeowners, especially those with modest assessed values, the expanded exemption could substantially reduce the non-school portion of their annual property tax bill.

New Florida Residents Would Be Subject to a Waiting Period

One of the more surprising provisions in the proposal is that people who establish Florida residency after January 1, 2027 would generally receive only the existing $50,000 homestead exemption during their first five years of residency.

Only after satisfying that waiting period would they become eligible for the larger exemption.

Lawmakers have stated that this provision was designed to prevent the expanded tax benefits from creating an immediate surge in migration to Florida.

How Could Local Governments Replace Lost Revenue?

One of the most debated aspects of the proposal is how counties, cities, and special districts would replace billions of dollars in property tax revenue if the expanded homestead exemption is approved.

Governor DeSantis' original proposal included creating a state trust fund to help local governments maintain essential services. During the legislative process, however, lawmakers removed that provision because no dedicated funding source had been identified. As approved, the constitutional amendment does not include a guaranteed replacement funding mechanism, meaning future legislatures would likely need to address the issue separately if voters approve the measure.

Potential replacement sources that have been discussed include:

  • Increased state revenue transfers

  • Higher sales taxes

  • Greater reliance on tourism-related taxes

  • Additional service fees or special assessments

  • Shifting a larger share of the tax burden to non-homesteaded properties

The amendment also contemplates a state trust fund designed to provide grants to local governments—particularly rural counties with smaller tax bases—to help maintain core public services. However, questions remain about the long-term funding source for that trust fund and whether it would fully offset reductions in local property tax revenue.

Potential Benefits of Eliminating Homestead Property Taxes

Lower Housing Costs for Homeowners

Property taxes represent a major component of homeownership expenses. Eliminating or reducing them could significantly lower annual housing costs for many homeowners.

Greater Stability for Long-Term Residents

Residents on fixed incomes, including retirees, may benefit from reduced tax burdens if property taxes decline.

Increased Appeal for Relocating Buyers

Florida already attracts many buyers because it has no state income tax. Lower property taxes could make the state even more attractive for individuals relocating from higher-tax states.

Potential Economic Growth

Supporters argue that lower taxes on primary residences could encourage population growth and investment.

Potential Concerns and Drawbacks

Reduced Local Government Revenue

Property taxes fund many essential public services. Eliminating a large portion of these taxes could require alternative funding sources.

Possible Tax Shifts

If property taxes decline, governments may rely more heavily on sales taxes, fees, or taxes on non-homesteaded properties.

Unequal Impact Between Owners and Renters

Renters do not directly benefit from homestead property tax reductions. If taxes shift toward non-homesteaded properties, rental housing costs could potentially increase.

Potential Effects on Housing Prices

Lower property taxes could increase purchasing power for buyers, which may influence home prices in some markets.

What Happens Next

For a proposal to become law, the Florida Legislature would need to approve a constitutional amendment placing the issue on a statewide ballot.

Florida voters would then need to approve the amendment with at least 60% support.

If approved on the November 2026 ballot, implementation could occur over several years depending on the final legislation.

Buyer Insight: Could We See a Surge in Home Sales Before January 1, 2027?

If the amendment is approved by voters on November 3, 2026, some real estate professionals believe Florida could experience increased demand from buyers hoping to establish residency before the January 1, 2027 cutoff for new residents.

Because the proposal would generally require people becoming Florida residents after January 1, 2027 to wait five years before qualifying for the expanded exemption, buyers considering a move to Florida may have an incentive to purchase and establish permanent residency before the deadline.

Whether this results in a meaningful increase in home sales remains to be seen, but many industry observers will be watching the market closely during the final two months of 2026.

For buyers considering property in Florida, the potential elimination or reduction of homestead property taxes could influence long-term ownership costs.

Homeowners who qualify for homestead status may see significantly lower annual tax expenses if the proposal becomes law. However, buyers should also consider that tax changes can influence home prices, local government funding, and the overall tax structure in the future.

Understanding Florida’s homestead protections and potential policy changes can help buyers evaluate the long-term financial impact of purchasing property in the state.

Limits on How Local Property Tax Revenue Could Be Used

The amendment would also limit the remaining county and municipal property tax revenue to specific categories authorized by the Florida Constitution.

These categories include:

  • Public safety, including law enforcement, fire protection, and emergency medical services

  • Public education

  • Roads, bridges, and other infrastructure

  • Flood control and natural resource projects

  • Debt service on existing obligations

  • Retirement benefits for local government employees

  • General operations and administration of county and municipal governments

Supporters argue these restrictions help ensure property tax dollars are spent on essential government functions, while critics question whether they could reduce local flexibility.

Potential Impact on Local Governments and Public Services

Supporters of the proposal argue that expanding the homestead exemption would provide meaningful tax relief to Florida homeowners while making the state even more attractive for permanent residents.

Opponents, including some local government organizations and policy analysts, have raised concerns that counties and municipalities could lose a significant portion of their operating revenue without an identified replacement funding source. They argue that local governments could respond by increasing fees, reducing services, delaying infrastructure projects, or relying more heavily on alternative revenue sources.

Some local officials have also expressed concern that uncertainty surrounding future revenues could affect long-term planning for conservation programs, public safety, parks, and other local initiatives.

Frequently Asked Questions

What is a homestead property in Florida?

A homestead property is a home that serves as the owner’s primary residence and qualifies for Florida’s Homestead Exemption. This status provides property tax reductions and limits how much the assessed value of the property can increase each year.

If I move to Florida in 2027, do I receive the $250,000 homestead exemption?

Under the current proposal, individuals establishing Florida residency after January 1, 2027 would generally receive only the existing $50,000 homestead exemption during their first five years before becoming eligible for the expanded exemption.

Who qualifies for the Florida Homestead Exemption?

Homeowners who own and permanently reside in a property in Florida may apply for the homestead exemption through their county property appraiser.

Would property taxes disappear completely?

Most proposals being discussed would eliminate non-school property taxes on homesteaded homes. School district taxes may still remain.

Do second homes or rental properties receive the same tax benefits?

No. Homestead protections apply only to primary residences. Vacation homes, investment properties, and rental properties do not qualify.

When could these changes take effect?

If lawmakers approve a constitutional amendment and voters support it, implementation could occur later this decade depending on the final legislation.

Could this affect home prices?

Lower property taxes may increase buyer purchasing power, which could influence home prices in some areas.

Has Florida already eliminated property taxes on homesteaded homes?

No. As of June 2026, lawmakers have approved a proposed constitutional amendment, but Florida voters must still approve it in the November 2026 election before any changes take effect.

Would school property taxes still be charged?

Yes. The proposal approved by the Legislature preserves school district property taxes while expanding exemptions for many non-school property taxes.

When would the larger homestead exemption begin?

If approved by voters, the exemption would increase to $150,000 on January 1, 2027, then increase again to $250,000 on January 1, 2028, with future adjustments tied to inflation.