Florida's Property Tax "Deal" Explained
If you've seen headlines about Florida "eliminating property taxes," it's worth slowing down before you make any decisions based on them. Here's what's actually happening, in plain terms.
Is it law? Not Yet.
Nothing has changed for your 2026 property tax bill. What passed is a proposed constitutional amendment — not a new law. On June 2, 2026, the Florida Legislature approved HJR 1, officially titled "Save Our Homes From Excessive Property Taxes" (it will appear on your ballot as Amendment 3). That sends the question to Florida voters on November 3, 2026, where it needs approval from at least 60% of voters to take effect.
If it passes, it wouldn't kick in until January 1, 2027, and you wouldn't see it reflected until your August 2027 TRIM notice and November 2027 tax bill. Current law stays exactly as it is unless and until voters approve it.
What it would actually do
The amendment replaces the current homestead exemption structure with a much larger one — but only for non-school portions of your tax bill:
Today, qualifying homeowners get a $51,411 exemption: $25,000 that applies to every millage (including schools), plus $26,411 that applies only to non-school taxes.
Under the amendment, that non-school exemption jumps to $150,000 in 2027 and $250,000 in 2028, adjusted for inflation every year after. The $25,000 school exemption stays exactly the same.
That last part matters more than it sounds. School taxes typically make up close to 40% of a Jacksonville property tax bill, and this amendment doesn't touch them. So even homeowners who see this as "eliminating" property taxes will still get a bill — just a smaller one for the non-school portion.
A few other pieces worth knowing:
Save Our Homes isn't going anywhere. The existing cap that limits annual assessment increases to 3% (or CPI, whichever is lower) for homesteaded property stays in place. This amendment adds a bigger exemption on top of it; it doesn't replace it. The similar name is confusing on purpose.
New Florida residents get a slower on-ramp. If you establish Florida residency on or after January 1, 2027, you'd start with only a $50,000 exemption and would need to hold your homestead for four years before qualifying for the full $150,000–$250,000 exemption in year five. If you're already a Florida resident by December 31, 2026, you'd be eligible for the larger exemption right away once you homestead a property.
Non-homestead property gets a smaller, different benefit. Rental property, commercial property, second homes, and vacant land would see their annual assessment cap drop from 10% to 5% — meaning taxable value can't climb as fast year over year. That's not a tax cut by itself; it only slows how quickly assessed value (and therefore the tax bill) can grow, and it doesn't apply to the school tax portion at all.
What it means for local budgets
This is the part that doesn't make it into most headlines. Property taxes fund about 74% of local tax revenue in Florida. Legislative analysts estimate this amendment would cut local government revenue by roughly $4.6 billion in its first year, growing to $8.4 billion a year after that — with no replacement funding mechanism written into the amendment itself.
That revenue has to come from somewhere. The realistic options are higher millage rates on whatever property remains taxable, new or higher local fees, or increased reliance on sales tax. None of those are guaranteed, and none of them are decided by this amendment — they'd be separate decisions made by local taxing authorities down the road. It's also worth noting the amendment doesn't guarantee funding levels for police, fire, or EMS; those remain budget decisions made annually by each local government.
What this means for you right now
Honestly, not much needs to happen today. But here's what's worth keeping in mind:
If you're a current Jacksonville homeowner, there's nothing to do yet. If the amendment passes, your savings will depend on your specific assessed value, existing Save Our Homes benefit, and local millage rates — none of which can be calculated precisely until implementing legislation is finalized.
If you're planning a move to Florida, timing could matter. Establishing residency by December 31, 2026 positions you for the larger exemption as soon as you homestead a property here, rather than waiting through the four-year phase-in that applies to anyone who becomes a resident in 2027 or later.
If you're an investor or landlord, the drop from a 10% to 5% non-homestead assessment cap is a real but modest change — it slows value growth, it doesn't cut your bill outright, and it's worth factoring into long-term holding cost projections rather than expecting an immediate difference.
If you're selling or considering selling, this isn't something that should change your timeline. It's a 2027 story at the earliest, contingent on a vote that hasn't happened yet.
I'll keep an eye on this as we get closer to November and update this as real numbers become available. In the meantime, if you have questions about how this might factor into a purchase, sale, or investment decision, reach out — happy to walk through it with you.
This information is based on the amendment as passed by the Legislature and is intended as general education, not tax or legal advice. For guidance specific to your situation, consult a licensed tax professional or attorney.
Add comment
Comments