Will Your Property Taxes Drop in 2027? Inside Florida's Homestead Exemption Expansion
What's Next? Proposed Property Tax Changes
Florida voters will have the opportunity to vote on significant property tax reform in November 2026. Governor Ron DeSantis' "Save Our Homes from Excessive Property Taxes" amendment could change how property taxes are calculated for many homeowners and investors. Here's what you need to know about the proposal:
Expanded Homestead Exemption
The biggest change would increase the homestead exemption for primary residences on non-school property taxes from the current levels to $150,000 in 2027, potentially rising to $250,000 in 2028. The existing $25,000 exemption for school taxes would remain unchanged. For longtime homeowners with modest market values, this could mean significant tax savings.
New Residency Timeline for Newcomers
If approved, new Florida residents moving to the state on or after January 1, 2027, would need to maintain residency for up to five years before qualifying for the enhanced $250,000 exemption. This doesn't prevent newcomers from getting the homestead exemption—it just phases in the larger benefit over time.
Lower Cap on Rental and Investment Properties
The proposal would also lower the annual assessment increase cap for non-homesteaded properties (rental homes, vacation properties, and commercial real estate) from 10% to 5% annually, excluding school taxes. This could slow assessed value growth for real estate investors.
Local Government Spending Rules
The amendment would restrict how counties and municipalities use property tax revenue, limiting it to core services like public safety, education, and infrastructure. Companion legislation signed in June 2026 also requires local governments to post more financial data online and follow stricter voting thresholds before raising tax rates.
What This Means
The proposal requires a 60% supermajority vote to pass. If approved, it could meaningfully reduce property taxes—especially for longtime homeowners and new residents who plan to stay in Florida long-term. However, the changes would need voter approval first, so it's worth staying informed as the November 2026 ballot approaches.
Why This Matters for Buyers
Property taxes are a significant part of the true cost of homeownership.
When budgeting for a purchase, remember to account for:
Mortgage payments
Homeowners insurance
Flood insurance (if applicable)
HOA fees
Property taxes
Two homes with the exact same purchase price can have very different annual tax bills depending on:
Homestead status
Assessment history
Municipal location
Special taxing districts
Available exemptions
Understanding these differences can help you make a more informed financial decision.
Final Thoughts
Property taxes aren't based solely on what your home is worth today. They are calculated through a multi-step process involving market value, assessed value, exemptions, and local millage rates. And with potential reforms on the horizon, the landscape may shift even more in the coming years.
If you're planning to buy or sell a home in Florida, understanding how property taxes work and what changes might be coming can help you avoid unexpected costs and make smarter real estate decisions.
Want to have a more specific conversation about what this all means for you? Feel free to send me an email at jane.barrellier@compass.com!
