Florida homeowners could see one of the most significant property tax changes in the state’s history if voters approve a proposed constitutional amendment in November.
The measure would increase the homestead exemption applied to most county, municipal and special-district property taxes. It would not change the portion of a homeowner’s tax bill that supports public schools.
Under the proposal, the exemption for qualifying homestead property would increase to $150,000 in 2027 and then to $250,000 in 2028. Future increases would be tied to inflation. The amendment would need support from at least 60% of voters to pass and, if approved, would take effect January 1, 2027. Florida Senate
Longtime residents would receive the benefit first
The timing of the proposal is particularly important for people who already own and occupy a Florida home.
Homeowners who establish Florida residency by December 31, 2026, would be eligible for the expanded exemption as it is phased in. Someone who becomes a Florida resident after that date would generally continue receiving the existing $50,000 exemption for four years before becoming eligible for the larger benefit.
That distinction is intended to direct the initial savings toward established residents, but it could also create different tax outcomes for owners of similarly valued homes based on when they moved to Florida.
The proposal would apply broadly to qualifying homestead owners rather than being limited to retirees. However, older homeowners and residents living on fixed incomes may feel its effects most directly, particularly as insurance premiums, maintenance costs and other housing expenses continue to rise.
The savings would depend on the individual property
A $250,000 exemption does not necessarily mean that every homeowner would save the same amount. Actual savings would depend on the property’s assessed value, applicable millage rates and the portion of the bill generated by non-school levies.
Owners of homesteads assessed below $250,000 could eventually owe little or no property tax to counties, municipalities and certain special districts. They could still receive a bill for school taxes and other assessments that are not covered by the exemption.
Homeowners with higher assessed values would continue paying non-school taxes on the value exceeding the exemption. Consequently, the proposal could produce substantial savings without completely eliminating property taxes for every Florida homeowner.
The measure would also reduce the annual assessment-growth limit for many non-homestead properties from 10% to 5%. That provision could affect investors, commercial property owners, landlords and owners of second homes, although those properties would not qualify for the expanded homestead exemption.
Lower Homeowner Bills Could Strain Local Revenue
While homeowners may welcome the possibility of lower tax bills, the proposal raises questions about how local governments would continue paying for services.
Counties and municipalities rely on property tax revenue for law enforcement, fire and emergency services, road maintenance, parks, infrastructure and other community needs. The amendment would direct remaining property tax revenue toward designated core functions, but it would still substantially reduce the amount collected from homestead properties.
Local governments could respond by cutting or delaying certain services, adjusting millage rates where legally permitted or looking for other sources of revenue. The ultimate effect would vary by community because Florida counties and municipalities differ considerably in their tax bases, growth patterns and reliance on residential property taxes.
For homeowners, that means the proposal should be evaluated as more than a reduction in a single annual bill. Changes in service levels, local fees and other taxes could influence the overall cost of living and owning property.
Ballot Language Faces A Legal Challenge
The amendment’s path to voters encountered a complication in early August when a Leon County circuit judge found that its ballot title and summary used language that was not sufficiently neutral.
The decision did not automatically remove the proposal from the November ballot. Instead, state officials were given an opportunity to revise the wording. That legal process could affect how the measure is ultimately presented to voters, although its underlying provisions remain the central issue.
Florida homeowners should watch for updated ballot language and review their property’s assessed value before estimating potential savings. They should also remember that the proposal would not reduce school taxes, assessments or every other charge appearing on a property tax bill.
If approved, the amendment could provide substantial relief to longtime homeowners. Its broader impact, however, would depend on how local governments adjust to the resulting revenue reductions—and whether other costs eventually replace some of the savings.
Source: Kiplinger
