Florida’s Proposed Property Tax Reform: What Homeowners Need to Know in 2026

Florida homeowners may soon see one of the biggest property tax changes in state history. State leaders have approved a proposed constitutional amendment that would significantly increase homestead exemptions and could eventually lead to the elimination of most property taxes on primary residences.

If approved by voters, this proposal would provide substantial tax relief for many Florida homeowners while also creating major changes in how local governments are funded.

Florida voters will decide the future of property tax relief in November 2026.

What Is Being Proposed?

The Florida Legislature recently approved a constitutional amendment that will appear on the November 2026 statewide ballot. The proposal is designed to reduce property taxes for homeowners who have established a Florida homestead exemption.

The plan would:

• Increase the homestead exemption to $150,000 in 2027 for non-school property taxes.
• Increase the exemption to $250,000 in 2028.
• Allow future lawmakers to consider additional reductions that could eventually eliminate most property taxes on homesteaded properties.
• Reduce annual assessment increases on non-homestead properties from 10% to 5%.
• Limit how counties and municipalities can use property tax revenue.

For many homeowners, the proposal could dramatically reduce annual property tax bills. Some lower-priced homes could see little to no county or city property taxes if the exemption exceeds the taxable value of the property.

Who Benefits?

The primary beneficiaries would be Florida homeowners who qualify for the Homestead Exemption.

Supporters argue that homeowners have faced increasing financial pressure from rising property values, insurance premiums, and inflation. They believe property tax relief would make homeownership more affordable and help residents stay in their homes.

The proposal also includes a five-year residency requirement for people who establish Florida residency after January 1, 2027. New residents would initially receive a smaller exemption before qualifying for the larger benefits available to long-term Florida residents.

What Are the Concerns?

While many homeowners welcome lower taxes, critics point out that property taxes fund important local services such as:

• Police and fire protection
• Emergency medical services
• Roads and infrastructure
• Parks and recreation
• Local government operations

Opponents worry that reducing property tax revenue could force local governments to cut services or find alternative revenue sources. Some analysts suggest that higher sales taxes, fees, or other taxes could eventually be needed to offset lost revenue.

The long-term financial impact remains one of the biggest questions surrounding the proposal.

What Must Happen Before It Becomes Law?

This is where many people are confused.

The proposal is not law yet.

Because the measure changes the Florida Constitution, several steps must occur before it can take effect:

Step 1: Legislative Approval (Completed)

The Florida Legislature has already approved the proposed constitutional amendment and placed it on the November 2026 ballot.

Step 2: Florida Voters Must Approve It

Florida constitutional amendments require approval from at least 60% of voters during a statewide election.

The proposed property tax amendment will appear on the November 2026 General Election ballot and must receive at least 60% voter support to pass.

Step 3: Implementation

If approved by voters, most provisions are expected to take effect beginning January 1, 2027, with additional increases in exemptions occurring in subsequent years.

What Could This Mean for Florida Real Estate?

If approved, the amendment could become a major selling point for Florida homeownership.

Lower property taxes would improve affordability for many buyers and could increase demand for primary residences throughout the state. Areas with strong homestead populations, including Destin, Miramar Beach, Santa Rosa Beach, and the 30A corridor, could see increased buyer interest as homeowners seek to take advantage of potential tax savings.

However, investors, second-home owners, and non-homestead property owners may not receive the same level of benefit, making it important to understand how the proposed changes apply to each property type.

Final Thoughts

Florida’s proposed property tax reform represents one of the most significant tax initiatives the state has considered in decades. Supporters view it as a way to provide meaningful relief to homeowners, while critics question how local governments will replace lost revenue.

For now, the proposal remains exactly that—a proposal.

The next major milestone will occur in November 2026 when Florida voters decide whether the amendment becomes part of the state constitution. Until then, homeowners, buyers, sellers, and investors should stay informed about how these potential changes could impact their real estate decisions.

If you have questions about buying or selling property in Destin, Miramar Beach, Santa Rosa Beach, or anywhere along the Emerald Coast, contact Keith Bailey Realtor with Century 21 AllPoints Realty. With 37 years of real estate experience, Keith can help you navigate Florida’s ever-changing real estate market.