Florida property owners are closely watching a proposed constitutional amendment that could reshape property taxes starting in 2027. The proposal, known as "Save Our Homes from Excessive Property Taxes," aims to substantially increase the homestead exemption and reduce the annual assessment cap for many non-homestead properties. However, these changes are not yet law—they hinge on voter approval in the November 3, 2026, general election, where a 60% supermajority is required.
The legislative package consists of two parts. CS/HJR 1-F is the proposed constitutional amendment that contains the major changes, while CS/SB 4-F has already been enacted and took effect June 24, 2026, altering rules for local property tax rates and administration. Property owners should understand that the enhanced exemption and lower cap will only apply if the amendment passes.
For qualifying homeowners, the current homestead exemption is up to $50,000, but it applies differently to school and non-school taxes. Under the proposed amendment, the non-school portion would jump to $150,000 in assessed value in 2027, then to $250,000 in 2028, with inflation adjustments thereafter. This means significant savings on county and municipal taxes, though school taxes remain unaffected.
Non-homestead property owners—including those with rental, second homes, and commercial properties—could see the annual assessment cap drop from 10% to 5%. This would limit how quickly assessed values rise, potentially slowing tax increases. However, a lower cap does not guarantee lower taxes, as millage rates and other factors still play a role.
A critical provision is the five-year residency rule. Those who are permanent Florida residents as of December 31, 2026, and qualify for homestead would receive the full expanded exemption starting in 2027. New residents after that date would initially get the current exemption and only become eligible for the larger one after five years. This has sparked questions about whether to establish residency before the end of 2026, but experts caution that residency decisions should consider broader legal, tax, and financial factors, not just property taxes.
The November 3, 2026, vote is pivotal. Until then, property owners should monitor official sources, such as the Florida Senate materials for CS/HJR 1-F and CS/SB 4-F, as well as guidance from the Florida Department of Revenue. These changes could significantly affect buying, selling, and holding property, but they are not guaranteed until voters have their say.
