Florida property owners are closely watching a proposed constitutional amendment that could dramatically alter property taxes starting in 2027. The measure, known as CS/HJR 1-F or “Save Our Homes from Excessive Property Taxes,” would increase the homestead exemption to as much as $250,000 and reduce the annual assessment cap for many non-homestead properties from 10% to 5%. However, these changes are not yet law; they require approval by at least 60% of voters in the November 3, 2026 general election.
If passed, the new provisions would take effect on January 1, 2027. For qualifying homeowners, the non-school portion of their property tax bill could see substantial relief. In 2027, the exemption would cover up to $150,000 of assessed value, rising to $250,000 in 2028, with inflation adjustments thereafter. It is important to note that school district taxes are not included in this expanded exemption, so homeowners would still pay school taxes on the full assessed value.
The proposal also addresses non-homestead properties, including rental homes, second homes, and commercial real estate. By reducing the annual assessment cap from 10% to 5%, owners would see slower increases in their property's assessed value, which could moderate tax bill growth. However, a lower cap does not automatically mean lower taxes; local millage rates and other factors still play a significant role.
A critical component is the five-year residency rule. Those who are permanent Florida residents as of December 31, 2026, and qualify for homestead, would receive the expanded exemption starting in 2027. New residents who establish homestead after that date would initially receive the current, more limited exemption and would only become eligible for the larger exemption in their fifth year of receiving the homestead exemption.
This residency requirement has sparked questions about whether people should consider moving to Florida before the end of 2026. Experts advise that residency decisions should not be based solely on property taxes. Establishing Florida domicile involves more than getting a driver's license; it requires a genuine change in primary residence, with considerations for family, employment, estate planning, and other legal and financial factors.
Meanwhile, another piece of legislation, CS/SB 4-F, has already been enacted and took effect on June 24, 2026. It addresses property tax administration and local tax rate rules, but it does not include the major exemption or cap changes. Property owners should be aware of the difference between what is already law and what is still pending voter approval.
For official details, the Florida Senate has published materials on the proposed amendment and the enacted legislation, and the Florida Department of Revenue offers property tax guidance. Links to these resources are available at CS/HJR 1-F and CS/SB 4-F.
As the November election approaches, property owners should monitor the amendment's status and assess its potential impact on their individual circumstances. Until then, it remains a proposal that could reshape Florida's property tax landscape.
