Does Florida's new property tax law apply to my existing home?

If your home already receives a Florida homestead exemption and you were a Florida resident on December 31, 2026, the larger exemption is designed to apply to the non-school portion of your taxes starting with the 2027 tax roll ($150,000) and 2028 ($250,000). It does not apply to second homes, rentals or investment properties. Confirm details with your county property appraiser.

Do I have to purchase before December 31, 2026?

No. The amendment's December 31, 2026 date is about Florida residency, not a purchase or closing date. Buying a home by that date does not by itself guarantee the increased exemption, and a Florida resident who buys later may still qualify. Speak with your county property appraiser and a tax professional about your situation.

What if I already live in Florida but have not purchased a home?

If you were a Florida resident on December 31, 2026, the amendment indicates you would not be subject to the five-year waiting period when you later buy and qualify a home for homestead. You'll still need to own and live in the home as your permanent residence on January 1 of the tax year and apply on time. Keep documentation of your residency.

What if I moved to Florida in 2026?

If you established Florida residency on or before December 31, 2026, you are generally treated as a resident for this rule. Residency is a factual question, so keep records such as a Florida driver's license, voter registration, vehicle registration and a declaration of domicile, and confirm with your property appraiser.

What if I purchase my home in January 2027?

Homestead eligibility is based on ownership and permanent residence as of January 1. A home purchased after January 1, 2027 generally would first qualify for the 2028 tax year. If you were not a Florida resident on December 31, 2026, you would receive the existing exemption (up to $50,000) until your fifth year of exemption.

Do second homes and investment properties qualify?

No. Homestead exemptions apply only to a qualifying permanent residence. Separately, the amendment lowers the annual cap on assessment increases for non-homestead properties from 10% to 5%, which may affect second homes and investment properties.

Do I still have to pay school property taxes?

Yes. The larger exemption applies to non-school property taxes. School district taxes continue to be calculated separately, with the existing $25,000 homestead exemption.

Do I need to apply again if I already have homestead exemption?

Florida homestead exemptions generally renew automatically while you continue to qualify. Your county property appraiser will announce whether any new form or confirmation is required to apply the larger exemption, so watch for notices and check your appraiser's website.

How does the new law affect recently purchased homes?

If you bought in 2026 and the home was your permanent residence on January 1, 2027, you would apply for homestead by the deadline (usually March 1, 2027). Whether you receive the full increased exemption may depend on whether you were a Florida resident on December 31, 2026.

What should I do if I am relocating from another state?

Plan your move with a real estate agent, lender, title company and qualified tax professional. If you were not a Florida resident on December 31, 2026, expect the existing exemption first, with the increased exemption beginning in your fifth year of exemption. You still benefit from Save Our Homes assessment limits once your homestead is approved.

Florida Property Tax Changes 2027 | New Homestead Exemption Explained

Breaking News: Florida Approves Major Property Tax Changes

On November 3, 2026, Florida voters approved Amendment 3 with roughly 62% support — above the 60% required for a constitutional amendment (Florida Division of Elections). It takes effect January 1, 2027 and first applies to the 2027 tax roll.

The homestead exemption for non-school property taxes increases to $150,000 in 2027.
It increases to $250,000 in 2028.
Inflation adjustments begin after 2028 (starting 2029).
School district property taxes are treated separately and keep the existing $25,000 exemption.
It applies only to qualifying primary residences — not automatically to every property.
Separately, the annual assessment-increase cap for non-homestead property drops from 10% to 5%.

Before 2027

Up to $50,000

Combined existing exemption

2027

$150,000

Non-school taxes

2028

$250,000

Non-school taxes, then inflation-adjusted

Important: the exemption reduces your home's taxable assessed value for certain taxes. It does not change your home's market value, and it does not mean you receive $150,000 or $250,000 in cash or a tax bill reduction of that amount.

Why December 31, 2026 Matters

The amendment draws a line based on Florida residency. People who are Florida residents on December 31, 2026 can receive the increased exemption once they qualify. People who are not Florida residents on that date receive the existing exemption (a $25,000 school-tax exemption and up to $50,000 for non-school taxes) when they qualify, with the increased exemption beginning with their fifth year of exemption (Florida Department of Revenue, PTO 26-21). The amendment applies this “to the extent permitted by the U.S. Constitution,” so further guidance may follow.

These four steps are related but not the same thing:

1. Purchasing a Florida home
Signing a contract and closing gives you ownership — nothing more on its own.
2. Establishing Florida residency
Showing Florida is where you live, e.g. Florida driver's license, voter and vehicle registration.
3. Making it your permanent residence
Actually living in the home as your primary residence as of January 1 of the tax year.
4. Applying for homestead
Filing with your county property appraiser, usually by March 1.

Simply signing a purchase contract or closing before December 31 does not guarantee the increased exemption. Your county property appraiser determines eligibility.

Who Is Affected, and How?

Existing Owners

Already homesteaded and a Florida resident by 12/31/2026: larger non-school exemption in 2027 and 2028. Save Our Homes cap continues.

Recent Buyers (2026)

If the home is your permanent residence on January 1, 2027, apply by the deadline (usually March 1, 2027). Residency date matters.

Future Buyers

Florida residents may qualify once they homestead. New residents after 12/31/2026: existing exemption first, increased exemption starting in year five.

Already Own a Home in Florida?

If your home already has an approved homestead exemption and you were a Florida resident on December 31, 2026, the amendment is designed to give you the larger non-school exemption without moving or re-buying. Homestead exemptions generally renew automatically, but it's smart to:

Look up your parcel on your county property appraiser's website and confirm your homestead status.
Watch for notices or new forms — the Department of Revenue has said it will issue updated guidance and forms.
Review your TRIM notice (mailed each August) for the 2027 taxable values.

Save Our Homes vs. homestead exemption: the exemption subtracts a fixed amount from assessed value. Save Our Homes is a separate protection that limits how much a homesteaded home's assessed value can rise each year (the lower of 3% or inflation). Both can work together.

Actual savings vary based on your assessed value, taxing districts, local millage rates and eligibility.

Just Purchased Your Florida Home in 2026?

Homestead eligibility is based on ownership and use as your permanent residence as of January 1 of the tax year. If you closed in 2026 and lived in the home on January 1, 2027, you may be able to apply for the 2027 tax year. The usual application deadline is March 1; confirm local filing requirements with your county property appraiser (e.g. Orange, Lake, Seminole or Osceola).

New Homeowner Checklist

Recorded deed or closing statement
Florida driver's license or ID showing the property address
Florida vehicle registration
Florida voter registration (if registered)
Social Security numbers for owners applying
Optional: Declaration of Domicile filed with the county clerk
File the homestead application by March 1
Save copies of everything you submit

Planning to Purchase a Home Before the End of 2026?

Before choosing a timeline, talk with a real estate agent, a lender, a title company and a qualified tax professional. Each sees a different piece of the picture.

Florida residents who buy their first Florida home are generally not subject to the five-year waiting period, whether they buy in December or next spring. Out-of-state buyers should understand that buying a home is not the same as becoming a Florida resident, and that the residency question is decided on facts, not on a closing date.

A thoughtful plan can help you understand potential benefits — but no one can guarantee specific tax savings, and the right home shouldn't be rushed into a deadline. See our guide to buying a Florida home from out of state.

Federal Tax Benefits Homeowners Should Know

Federal income tax deductions are separate from Florida's homestead property tax changes. Under current 2026 federal law (IRS):

Mortgage interest: generally deductible on up to $750,000 of qualified home acquisition debt ($375,000 if married filing separately) for loans taken after December 15, 2017.
SALT deduction: state and local taxes, including property taxes, are deductible up to $40,400 for 2026, with the limit reduced for higher-income taxpayers, as confirmed in the IRS correction to the 2026 Form 1040-ES instructions. Your actual benefit depends on your filing status, income, the taxes you actually pay, and whether itemizing beats the standard deduction.
Mortgage points: points paid to buy your main home may be deductible, in some cases in the year paid.
Property taxes: real estate taxes you actually pay count toward the SALT limit.
Itemize or standard deduction: these deductions only help if you itemize, which makes sense only when your total itemized deductions exceed your standard deduction.

There is no federal tax credit available to all first-time homebuyers. Ask a tax professional what applies to you.

How Much Could Homeowners Save?

Here's a hypothetical example: a homesteaded home with an assessed value of $350,000 and a hypothetical non-school millage rate of 12 mills ($12 per $1,000 of taxable value). School taxes are not included.

Illustrative only — non-school taxes
Scenario	Exemption	Taxable value	Non-school tax	Change
Prior structure	$50,000	$300,000	$3,600	—
2027 (Amendment 3)	$150,000	$200,000	$2,400	−$1,200
2028 (Amendment 3)	$250,000	$100,000	$1,200	−$2,400

The math:

Prior structure: ($350,000 − $50,000) × 0.012 = $3,600

2027 (Amendment 3): ($350,000 − $150,000) × 0.012 = $2,400

2028 (Amendment 3): ($350,000 − $250,000) × 0.012 = $1,200

Notice that a $250,000 exemption in this example lowers the non-school bill by $2,400 — not by $250,000. Your real numbers depend on your county's millage rates, your assessment, existing exemptions and your circumstances. New residents subject to the five-year wait would see the “prior structure” row until their fifth year of exemption.

Frequently Asked Questions

What Should You Do Next?

Current Florida Homeowners

Already Own a Home? Make Sure You're Informed About Your Property Tax Benefits.

Review your homestead exemption and watch for updates from your county property appraiser. Find your appraiser through the Florida Department of Revenue.

Find Your Property Appraiser

Future Homebuyers

Thinking About Buying or Relocating to Central Florida? Let's Talk About Your Options.

Explore homes in Orlando, Lake County, Tavares, Mount Dora, Clermont, Apopka and nearby, and understand the buying process with E. “EL” Nisbett.

Contact EL 407-734-0010

Have questions about timing a Central Florida purchase? EL can walk you through the buying process and connect you with lenders and title partners.

Talk With EL

Keep exploring: Central Florida relocation · Homebuyer resources · Search homes · Luxury Collection

Sources

This article is provided for general educational purposes only and does not constitute legal, financial, or tax advice. Tax laws, exemptions, eligibility requirements, and individual circumstances vary. Consult your county property appraiser and a qualified tax professional for guidance specific to your situation.

E. “EL” Nisbett, licensed sales associate, LPT Realty, LLC · 407-734-0010 · hiddengempro@gmail.com

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