Florida's proposed property tax changes, known as the "Save Our Homes from Excessive Property Taxes" amendment, could have far-reaching effects on homeowners, investors, second-home owners, and commercial property owners. The proposal includes a much larger homestead exemption and a lower annual assessment cap for many non-homestead properties. However, these changes are not yet law; Florida voters must approve the constitutional amendment in the November 3, 2026 general election.
Understanding the current status is crucial. CS/HJR 1-F is the proposed constitutional amendment that will appear on the ballot, requiring at least 60% voter approval to pass. If approved, it would take effect on January 1, 2027. In contrast, CS/SB 4-F has already been enacted, effective June 24, 2026, and deals with local property tax rates and administration. The key point is that the larger homestead exemption and lower non-homestead assessment cap hinge on the passage of CS/HJR 1-F.
Under the proposed amendment, qualifying homeowners could see a substantial increase in their homestead exemption from non-school property taxes. Beginning in 2027, the exemption would cover up to $150,000 of assessed value, rising to $250,000 in 2028, with inflation adjustments thereafter. It's important to note that this expanded exemption does not apply to school district taxes, which are treated separately. The actual savings for a homeowner would depend on the property's assessed value, local millage rates, and other factors.
The proposal also extends to non-homestead properties. CS/HJR 1-F would reduce the annual assessment cap for many non-homestead residential and non-residential properties from 10% to 5%. This could slow the growth of assessed values for rental properties, second homes, investment properties, and certain commercial properties. However, a lower cap does not automatically mean lower tax bills, as taxes are based on taxable value and millage rates.
One of the most significant provisions is the five-year residency rule. Under the proposal, individuals who are permanent Florida residents as of December 31, 2026, and otherwise qualify for homestead, could receive the expanded exemption starting in 2027. Those who become residents after that date would initially receive the more limited exemption and would only become eligible for the larger exemption after five years. This has raised questions for people considering a move to Florida.
The December 31, 2026 deadline could become pivotal if the amendment passes, but residency decisions should not be based solely on property taxes. Establishing Florida residency involves more than getting a driver's license or filing a declaration of domicile. Factors like where you actually live, family and employment connections, business activities, estate planning, insurance, and tax considerations all play a role. For those already contemplating a move, the property tax changes may be an additional factor to weigh, but it should be part of a broader legal and financial plan.
Property owners should monitor the upcoming election. The most important date is November 3, 2026, when voters decide on the amendment. Until then, it's essential to distinguish between what has already become law under CS/SB 4-F and what is still proposed under CS/HJR 1-F. If approved, the new provisions take effect January 1, 2027. For those buying, selling, or restructuring Florida property, these changes could be significant, but they are not guaranteed until the voters have spoken.
For official information, the Florida Senate has published materials on CS/HJR 1-F and CS/SB 4-F, and the Florida Department of Revenue provides property tax guidance. This article is for informational purposes only and does not constitute legal, tax, or financial advice.
