Florida’s 2026 Property-Tax Amendment: What the $250,000 Homestead Exemption Would Actually Change

Updated on July 22, 2026. This election-season guide will be revised when the court rules on the ballot-language lawsuit, new polling is released, or official ballot materials change.

Florida voters are scheduled to decide on November 3, 2026 whether to approve a constitutional amendment that would sharply expand the homestead exemption for non-school property taxes. If at least 60% vote yes, qualifying homeowners who maintained Florida permanent residence by December 31, 2026 would receive an exemption of up to $150,000 of assessed value in 2027 and $250,000 in 2028. School taxes, non-ad valorem assessments and many fees would remain.

The proposal—CS/HJR 1-F, commonly identified as Florida Amendment 3—also would reduce the annual assessment-growth cap on non-homestead property from 10% to 5% for non-school levies. That provision reaches rental homes, second homes and commercial real estate, even though those properties would not receive the enlarged homestead exemption.

This is not a simple vote to “eliminate property taxes.” It is a major reallocation of Florida’s local tax base, with different consequences for established homeowners, future residents, renters, investors and municipal budgets. A pending lawsuit also challenges whether the ballot title and summary describe those consequences neutrally and accurately.

What voters will decide on November 3

The Legislature approved CS/HJR 1-F during its June special session by votes of 75–26 in the House and 30–9 in the Senate. The resolution was signed by legislative officers and filed with the Secretary of State on June 16. Because it proposes a change to the Florida Constitution, it does not require the governor’s signature; it requires approval from at least 60% of voters participating on the question.

A yes vote would place four related changes into the constitution beginning January 1, 2027:

1. A much larger non-school homestead exemption, phased from $150,000 in 2027 to $250,000 in 2028.
2. A separate five-year pathway for people who become permanent residents after the 2026 cutoff.
3. A 5% annual assessment-growth cap on non-homestead property for non-school levies, replacing the current 10% cap.
4. Limits on the categories for which counties and municipalities may use ad valorem property-tax revenue.

A no vote would leave the existing constitutional property-tax framework in place. The election is scheduled for November 3, with Florida’s mandatory early-voting period running October 24–31. The deadline to register for the general election is October 5.

Current Florida rules versus the proposed amendment

The word assessed is essential. Exemptions and assessment caps apply to assessed value, not necessarily the property’s market value or purchase price. Save Our Homes, portability, prior assessments and changes in ownership can make two similar houses carry very different taxable values.

How the $150,000 and $250,000 homestead exemptions would work

Florida property-tax bills combine multiple taxing authorities. School-board millage is separated from county, municipal and special-district millage. The amendment enlarges the exemption against the non-school side only.

For an eligible established resident, the basic calculation would be:

Non-school taxable value = assessed value minus the applicable exemption, but not below zero.

In 2027, up to $150,000 would be subtracted. In 2028, up to $250,000 would be subtracted. Beginning in 2029, the maximum would rise when the relevant inflation measure is positive. A home with only $200,000 of assessed value could therefore have no non-school taxable value under the 2028 exemption, but school taxes and non-ad valorem charges would still remain.

The proposal also directs the Legislature to establish a uniform process under which counties and municipalities could grant additional exemptions up to the remaining assessed value. That is a path for possible future reductions; it does not automatically abolish all non-school homestead taxes statewide.

Estimated savings by assessed property value

The following examples use the Pinellas County Property Appraiser’s official illustration: a 2026 current non-school exemption of $51,411 and a representative 12.2011-mill aggregate non-school rate. One mill equals $1 of tax for each $1,000 of taxable value. Actual rates vary by county, municipality and special district.

Why are the estimated savings identical above $250,000? At a fixed millage rate, each example receives the same additional exempt value: $98,589 in 2027 and $198,589 in 2028 compared with the assumed current exemption. Property value changes the remaining tax, but not the dollar benefit of a fixed exemption once assessed value exceeds the exemption.

Use this shortcut for an individualized estimate:

• 2027 maximum incremental savings: $98,589 × your combined non-school millage ÷ 1,000.
• 2028 maximum incremental savings: $198,589 × your combined non-school millage ÷ 1,000.

For example, at 15 mills the maximum incremental savings would be approximately $1,479 in 2027 and $2,979 in 2028. This is an estimate, not a tax quote. Millage, assessed value, exemption eligibility and non-ad valorem charges can change the result.

School taxes must be calculated separately

The larger exemption would not reduce school-board taxable value. A qualifying homeowner would continue to apply the existing school exemption—generally $25,000—against assessed value, then multiply the remainder by the applicable school millage. That is why a property with no remaining non-school taxable value could still receive a substantial annual tax bill.

Existing residents versus new Florida residents

The residency cutoff creates one of the proposal’s largest economic distinctions. A person who maintained Florida permanent residence as of December 31, 2026 and later establishes a qualifying homestead could receive the $150,000 exemption in 2027 and the $250,000 exemption in 2028.

A person who establishes permanent Florida residence on or after January 1, 2027 generally would receive up to $50,000 of non-school exemption, adjusted for positive inflation beginning in 2028. The enhanced exemption becomes available beginning with the fifth year of that exemption.

Beginning in 2030, a county or municipality could shorten the five-year requirement by a two-thirds vote when it determines that a critical local need warrants doing so. That could eventually create local differences in how quickly new residents obtain the larger benefit.

The cutoff may affect the economics of Florida migration and housing demand. It rewards established residency and could pull some planned moves or homestead decisions into 2026. But it also weakens the immediate tax incentive for households arriving after the deadline. Buyers should not assume that purchasing by year-end alone proves permanent residency or homestead eligibility; those are fact-specific legal and tax determinations.

What changes for rentals, second homes and commercial property?

Rentals, vacation homes and commercial properties do not receive the proposed $150,000 or $250,000 homestead exemption. They would, however, receive a tighter assessment-growth limitation for non-school levies.

Florida currently limits annual assessment increases on many non-homestead properties to 10%. The amendment would reduce that ceiling to 5% beginning January 1, 2027. The limit does not freeze taxes, guarantee a lower bill or apply to school levies. Taxes can still rise when:

• The assessment increases within the 5% cap
• A taxing authority raises its millage rate
• A change of ownership or qualifying event resets assessed value
• Non-ad valorem assessments or service fees increase

For investors, the lower cap adds predictability to assessed-value growth. The offsetting risk is tax-base shifting. If local governments respond to reduced homestead taxable value with higher millage or fees, some of the burden could move toward non-homestead owners and tenants. Whether landlords can pass those costs through depends on leases, rent demand and local supply.

Developers also need to separate this amendment from incentives under the Live Local Act. The 5% cap is a broad assessment limit; it is not an affordable-housing abatement or project-specific exemption.

What the amendment would not eliminate

The proposal would not erase the entire property-tax bill. It leaves several major charges in place:

• School district property taxes: The enhanced exemption does not apply.
• Non-ad valorem assessments: Charges for fire, solid waste, stormwater or other services may be billed by parcel or another unit rather than value.
• Special assessments: Local governments and special districts may impose assessments under separate authority.
• Community development district charges: CDD debt and operating assessments are not automatically removed.
• Association dues and condo assessments: These are private obligations, not ad valorem taxes.
• Federal taxes and insurance: The amendment does not change them.

Florida therefore would not become a property-tax-free state in 2027 or 2028. The amendment initially reduces the non-school taxable value of qualifying homesteads and creates a process for possible additional local exemptions.

Could local governments raise millage rates or fees?

They could seek other ways to balance budgets, but their choices would be constrained. The implementing legislation signed in June, SB 4-F, tightened the thresholds for local governments to exceed the rolled-back millage rate. Rates up to 110% of the rolled-back rate generally require a two-thirds governing-board vote; still higher rates require a larger supermajority or voter approval, depending on board size and circumstances.

Local governments could also reduce spending, delay capital work, draw reserves where legally available, restructure services, or expand fees and non-ad valorem assessments. New Smyrna Beach’s discussion of a fire assessment illustrates why homeowners should evaluate the total cost of local government, not only the ad valorem line.

Legislative estimates cited in the public debate project multibillion-dollar annual reductions in local revenue once the amendment is fully phased. The effect will vary. Jurisdictions with many homesteaded properties and limited commercial tax base may face a different adjustment from tourism-heavy or high-growth counties.

Municipal borrowing and bond markets

The amendment expressly permits property-tax revenue to be used for qualifying bond issuance and existing debt service. It does not cancel municipal debt. However, a smaller or less flexible revenue base could affect future borrowing capacity, debt-service coverage and investor analysis for an individual issuer. The outcome depends on the pledged revenue, legal covenants, reserves, replacement revenue and spending response—not simply on whether the amendment passes.

Potential effects on home prices, affordability and migration

Recurring tax savings can become capitalized into home prices because buyers may be willing to pay more for a lower annual carrying cost. That effect would not be uniform. It should be strongest where homeowners can claim the full exemption and weakest for new residents in the waiting period, renters and properties with assessed values already below the proposed exemption.

Lower carrying costs may help long-tenured owners remain in place, but that can also reduce listings and reinforce Florida’s lock-in effect. The near-term housing response will interact with mortgage rates, insurance, inventory and income growth. See our Miami housing market forecast and the latest Florida housing-market data for those broader forces.

The distributional effect is mixed. Established owners receive the clearest direct benefit. Renters do not receive an exemption. New residents wait for the larger benefit. Buyers may face some capitalization of anticipated savings into prices. Those distinctions matter in a region where Miami’s cost of living already reflects high housing, insurance and service costs.

Arguments for and against the amendment

Miami Finance Review does not endorse a position. The financial question for voters is whether the homeowner relief and tighter assessment caps outweigh the fiscal adjustment required of local governments and the uneven treatment across property and resident categories.

Lawsuit and ballot-status tracker

Status as of July 22, 2026: scheduled for the November ballot; ballot-language challenge pending.

Save Our Voters From Misleading Ballot Language and two former South Florida mayors filed suit in Leon County on June 11. The challenge argues that the title “Save Our Homes From Excessive Property Taxes” and phrases such as “ensuring funding for core services,” “protecting small businesses” and “ensuring fairness” advocate for the proposal instead of neutrally describing it.

The plaintiffs also contend that the summary does not adequately explain the 2027 phase-in, overstates the promise of full elimination and obscures the breadth of the non-homestead provision. The lawsuit seeks a ruling that the wording is defective and a lawful rewrite. It does not ask the court to decide whether the tax policy itself is economically wise.

Possible outcomes include the current language remaining intact, a court-ordered rewrite through the statutory process, or further appellate litigation. Because ballot-printing deadlines approach before Election Day, this section should be refreshed whenever a trial or appellate court issues an order.

Timeline from election season through 2030

Frequently asked questions

Will Florida eliminate property taxes in 2026?

No. The amendment would not take effect until 2027, would not eliminate school taxes, and would not remove non-ad valorem charges. It creates larger non-school homestead exemptions and a process for possible future local increases.

How much would the new homestead exemption save?

The answer depends on assessed value and local non-school millage. Using a 12.2011-mill illustration, a fully eligible homeowner with sufficient assessed value would save about $1,203 in 2027 and $2,423 in 2028 compared with the assumed 2026 exemption.

Does the Florida amendment affect school taxes?

No. The expanded $150,000 and $250,000 exemptions apply to levies other than school district levies. The existing school-tax exemption generally remains $25,000.

Does the amendment apply to rental properties?

Rentals would not receive the enlarged homestead exemption. They would generally benefit from a reduction in the annual non-school assessment-growth cap from 10% to 5%.

What happens to people who move to Florida after 2026?

People establishing permanent residence on or after January 1, 2027 generally would receive the smaller exemption for five years before becoming eligible for the enhanced amount. Local governments could shorten that period for a critical local need beginning in 2030.

When would the $250,000 exemption begin?

For qualifying established residents, it would begin January 1, 2028. The first phase is a $150,000 exemption beginning January 1, 2027.

What percentage is required for passage?

At least 60% of voters casting a vote on the amendment must approve it.

Is Florida Amendment 3 being challenged in court?

Yes. A lawsuit filed in Leon County challenges the neutrality and accuracy of the ballot title and summary. As of July 22, 2026, the measure remained scheduled for the November ballot and the challenge had not produced a reported final disposition.

Is the exemption based on market value or assessed value?

Assessed value. Market value, assessed value and taxable value can differ because of Save Our Homes, portability, exemptions and reassessment events.

Primary sources and update record

1. Florida Legislature: CS/HJR 1-F bill history and enrolled text
2. Florida Senate Appropriations Committee: official bill summary
3. Florida Division of Elections: 2026 election dates
4. Sarasota County Property Appraiser: property-tax initiative explanation
5. Pinellas County Property Appraiser: exemption and savings examples
6. Executive Office of the Governor: SB 4-F implementation summary
7. Save Our Voters: ballot-language challenge and complaint summary
8. Tax Foundation: independent tax-policy analysis

Update record: July 22, 2026—initial publication based on the enrolled resolution, official legislative summary, county property-appraiser guidance, election calendar and pending ballot-language litigation.

Miami Finance Review provides independent, nonpartisan financial analysis. This article is informational and is not legal, tax, election, municipal-finance or investment advice. Property owners should verify eligibility and estimates with their county property appraiser and qualified advisers.

Miami Finance Review produces independent editorial analysis. Figures are attributed to their sources and independently cross-checked where possible. This content is informational and is not investment, legal, tax or lending advice.