Florida Property Tax Overhaul: Winners, Losers & What’s Next

Florida homeowners could see their property taxes slashed dramatically under a proposed constitutional amendment that passed the state legislature on June 2, 2026, but the plan carries a major financial catch for anyone moving to the Sunshine State after this year. The measure, backed by Governor Ron DeSantis, now heads to the November 3 general election ballot, where it requires 60% voter approval to take effect.

The Proposal at a Glance

House Joint Resolution (HJR) 1-F, passed during a special legislative session, would expand Florida’s homestead property tax exemption from the current $50,000 to $250,000 by 2028. According to Fox Business, the exemption would phase in over two years: rising to $150,000 on January 1, 2027, and then to $250,000 on January 1, 2028, with annual inflation adjustments thereafter.

The exemption does not apply to school district taxes, which account for roughly 40% of a typical Florida property tax bill. Lawmakers amended DeSantis’ original proposal to protect school funding after concerns were raised about the impact on education budgets.

The Newcomer Penalty

Perhaps the most controversial element of the plan is its treatment of future residents. Floridians who establish primary residency by December 31, 2026, qualify for the full exemption as it phases in. But newcomers who move to the state after that date must wait five years before receiving the full $250,000 exemption. During that waiting period, they receive only the current $50,000 exemption.

As Florida Realtors reports, the amendment also reduces the annual assessment increase cap for non-homestead properties — including commercial real estate, vacation homes, and rentals — from 10% to 5% beginning January 1, 2027.

Winners: Existing Homeowners

For current Florida homeowners, the financial benefits could be substantial. Property appraisers in Broward and Miami-Dade counties estimate average savings of roughly $1,500 to $1,800 per year. Approximately 60% of homesteaded Florida homeowners would owe zero non-school property tax under the full exemption.

“I think it will be particularly appealing to people leaving the Northeast and other high-tax states who are evaluating where to establish permanent residency,” Nick Malinosky of Douglas Elliman told Fox Business. “The state already wins on weather and lifestyle. Tax policy simply becomes another advantage in an increasingly competitive relocation landscape.”

Losers: Local Governments and Newcomers

The flip side is a projected revenue shortfall of more than $8.4 billion annually for local governments across Florida. The Florida Policy Institute has identified an even larger structural gap of $18.5 billion, according to analysis cited by Jacksonville Today.

Critics argue the measure is not tax relief but a tax shift. “When the bill comes due, it won’t be paid by Tallahassee,” said Sen. Lavon Bracy Davis, D-Ocoee, as reported by Jacksonville Today. “It will be paid by your city, your county, your neighborhood school, your library, your community. This proposal does not eliminate costs, it simply moves them.”

Under the amendment, local governments would be constitutionally restricted to spending remaining property tax revenue on “core services” — police, fire rescue, EMS, infrastructure, flood control, and government employee pensions. Libraries, parks, and community programs would lose their protected funding streams.

Unanswered Questions

Legal analysts have raised concerns about the speed and process behind the proposal. Seth D. Lubin, a property tax attorney, wrote in a detailed analysis that “a constitutional amendment affecting $18.5 billion in annual local government revenue has been drafted, amended, and is being advanced to a ballot vote, all within the span of approximately one week. No independent fiscal modeling has been completed. No formal testimony from affected local governments has been heard through the normal committee process.”

Key unresolved questions include:

• Revenue replacement: A state trust fund created to assist local governments has no dedicated funding source, amount, or distribution formula specified.
• Special districts: Florida’s 350+ independent special taxing districts — including fire control, water management, and mosquito control districts — are not addressed in the legislation.
• Fee shifting: Local governments may respond to lost revenue by raising non-ad valorem special assessments (flat fees not based on property value), which could disproportionately affect lower-income homeowners.
• Rural impact: Counties with thin commercial tax bases may be disproportionately affected by the revenue loss.

Political Dynamics

The vote was largely along party lines, with the House approving the measure 75-26 and the Senate voting 30-9. Three Democratic senators crossed party lines to support the amendment, while two Republicans voted against it.

House Speaker Daniel Perez, R-Miami, expressed pride in the process but acknowledged he would have preferred the debate during the regular session. “I’m proud of the opportunity that we are giving the voters by letting them decide if this is something that’s going to come to fruition or not,” Perez told reporters.

Sen. Ed Hooper, R-Clearwater, who chairs the Senate Appropriations Committee, voiced mixed feelings: “This issue has created heartburn for me from day one, because I’m getting it from both sides.”

What’s Next

If approved by 60% of voters in November, the homestead exemption rises to $150,000 on January 1, 2027, and to $250,000 on January 1, 2028. The non-homestead assessment cap drops to 5% on January 1, 2027.

For potential newcomers, the calculus is urgent: anyone establishing Florida residency before December 31, 2026, locks in the full benefit. After that, the five-year waiting period applies. This could trigger a surge in relocations and home purchases before the year-end deadline, reshaping Florida’s real estate market in the months ahead.

As Mick Duchon of The Corcoran Group noted, “Voters will likely support the concept of tax relief, but they’ll also want transparency regarding schools, public safety, infrastructure and municipal budgets. If lawmakers can clearly address those concerns, the proposal has a strong chance of gaining broad support.”

Whether the proposal delivers on its promise of tax relief or simply shifts the burden remains the central question Florida voters will decide this November.