Florida property owners are closely watching a proposed constitutional amendment that could significantly alter property tax burdens. The proposal, known as "Save Our Homes from Excessive Property Taxes," 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 amendment in the November 3, 2026 general election, and it requires at least 60% voter approval to take effect.
The proposal has two parts. CS/HJR 1-F is the proposed constitutional amendment that will appear on the ballot, containing the major changes. CS/SB 4-F, which has already been enacted and became effective June 24, 2026, changes certain rules governing local property tax rates and administration. The key point is that the larger homestead exemption and lower non-homestead assessment cap will not take effect unless voters approve CS/HJR 1-F. If approved, the amendment would take effect January 1, 2027.
Currently, qualifying Florida homeowners can receive a homestead exemption of up to $50,000, though it applies differently to school and non-school taxes. Under the proposed amendment, the non-school exemption would increase to $150,000 of assessed value in 2027, then to $250,000 in 2028, with inflation adjustments thereafter. This means homeowners could see significant reductions in the county, municipal, and other non-school portions of their property tax bills. However, school district taxes are treated differently and would not receive the expanded exemption. The actual savings depend on assessed value, local millage rates, and other factors.
The proposal also affects non-homestead properties, including rental properties, second homes, and commercial properties. CS/HJR 1-F would reduce the annual assessment cap for many of these properties from 10% to 5%, limiting how quickly their assessed values can increase. This could be beneficial, but it does not guarantee lower tax bills, as taxes still depend on taxable value and local rates.
One of the most significant aspects is the five-year residency rule. Under the proposal, individuals who maintained permanent Florida residence 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 the fifth year of receiving the homestead exemption. This has raised questions for those considering a move to Florida, but experts caution that residency decisions should not be based solely on property taxes. Establishing Florida residency involves more than just getting a driver's license; it requires considering where you live, family and employment connections, business activities, estate planning, insurance, and tax implications.
Property owners should watch the November 3, 2026 election closely. Until then, it is important to distinguish between what has already become law under CS/SB 4-F and what is still proposed under CS/HJR 1-F. If the amendment passes, the new provisions will take effect in 2027. For those buying or selling property, establishing residency, or restructuring real estate holdings, these changes could be important, but they should not be treated as guaranteed until voters approve them.
For more information, property owners can review the Florida Senate materials for CS/HJR 1-F and CS/SB 4-F, as well as property tax guidance from the Florida Department of Revenue (link to flsenate for DOR? Actually, the source doesn't provide a direct link to DOR, but we can link to flsenate as per source). This article is for informational purposes only and does not constitute legal, tax, financial, or investment advice.
