Florida property owners are closely watching a proposed constitutional amendment that could reshape property taxes starting in 2027. The measure, known as CS/HJR 1-F, would expand homestead exemptions and reduce annual assessment caps for many non-homestead properties. However, its fate rests with voters in the November 3, 2026 general election, where it needs at least 60% approval to pass.
If approved, qualifying homeowners could see their non-school property tax exemption increase to $150,000 of assessed value in 2027, rising to $250,000 in 2028, with inflation adjustments thereafter. This exemption applies only to non-school taxes, meaning county and municipal portions of the tax bill would be reduced, but school district taxes would remain unchanged. The actual savings depend on assessed value, local millage rates, and other factors.
For owners of rental properties, second homes, and commercial real estate, the amendment would lower the annual assessment cap from 10% to 5%, limiting how quickly assessed values can increase. This could slow the growth of taxable value, but it does not guarantee lower tax bills, as millage rates and other factors still apply.
A critical provision involves Florida residency. Those who establish permanent residency by December 31, 2026, and qualify for homestead would receive the expanded exemption starting in 2027. Those who become residents after that date would initially receive the current, more limited exemption and would not qualify for the larger one until their fifth year of homestead. This has prompted many considering a move to Florida to weigh the timing, but experts caution that residency decisions should not be based solely on property taxes. Establishing Florida residency requires more than a driver's license or declaration of domicile; it involves where you live, work, and have family ties, among other factors.
It's important to distinguish between what has already become law and what is still proposed. CS/SB 4-F, effective June 24, 2026, changes certain rules on local tax rates and administration, but the expanded exemptions and lower caps are part of CS/HJR 1-F, which requires voter approval. If passed, the new provisions would take effect January 1, 2027.
Property owners should monitor the upcoming election and consult official resources, including the Florida Senate materials for CS/HJR 1-F and CS/SB 4-F, as well as guidance from the Florida Department of Revenue. Until the voters decide, these changes should not be treated as guaranteed, but they could become a significant factor in planning for property purchases, sales, and residency changes.
