Florida's Big Property Tax Proposal: What Every Homeowner Needs to Know Before November

By Kalie Luckenbaugh | Kalie Has the Keys | Volusia County Real Estate

If you've been seeing headlines about Florida eliminating property taxes and wondering what's actually true, you're not alone. There's a lot of noise out there, and I want to break it down for you in plain English: what it is, what it could mean for your wallet, and what to watch for between now and November.

What Is This Proposal, Exactly?

On June 2, 2026, the Florida Legislature passed HJR 1F, officially titled the "Save Our Homes from Excessive Property Taxes" amendment, during a special legislative session called by Governor Ron DeSantis. It passed the House 75 to 26 and the Senate 30 to 9.

Here's what it would actually do:

The current homestead exemption in Florida is $50,000. Under HJR 1F, that exemption would jump to $150,000 in 2027, then to $250,000 in 2028, and be adjusted annually for inflation going forward. The proposal also directs the Legislature to eventually create a path toward full elimination of the non-school portion of property taxes for homesteaded owners.

But here's the part that often gets lost in the headlines: school district taxes are NOT included. Those stay in place. The relief only applies to the non-school portion of your property tax bill, which makes up roughly 60% of what most homeowners pay.

At the $250,000 exemption level, an estimated 60% of Florida homesteaded homeowners would pay zero on the non-school portion of their bill.

Because this is a constitutional amendment, it doesn't need the Governor's signature. But it does need 60% voter approval on the November 3, 2026 ballot before it takes effect.

One more detail worth knowing: residents who establish Florida homestead status on or before December 31, 2026 would qualify for the full expanded exemption if the amendment passes. Those establishing a homestead after January 1, 2027 would initially receive the existing exemption structure and would become eligible for the expanded exemption beginning in their fifth year of Florida homestead residency.

How Did We Get Here?

This did not happen overnight. Florida has been working toward property tax relief for over a year. In October 2025, the Florida House released seven separate proposals, ranging from a senior-only exemption to full elimination. Only one of them, HJR 203, a phased 10-year elimination plan, passed the full House (80 to 30 in February 2026), but the Senate let it die without ever scheduling a hearing.

After the regular session ended in March 2026 without a deal, and a second special session in April also came up empty, Governor DeSantis wrote his own plan and called a summer special session. That produced HJR 1F, the proposal ultimately passed by both chambers and the one now headed to Florida voters.

What Could This Mean for Volusia County Homeowners?

In Volusia County, the median effective property tax rate is around 0.96%, with tax bills ranging widely depending on location and home value. Home values across Volusia County vary significantly by city, neighborhood, and property type, but many homeowners could see their non-school tax burden drop dramatically or disappear entirely if the amendment passes.

Here's a rough idea of what the exemption increase could look like based on different assessed values:

Important: These figures are illustrative examples only and are based on estimated non-school millage rates. Actual savings will vary depending on your property's assessed value, exemptions, taxing district, and future legislative implementation. Your assessed value may also differ significantly from your market value, especially if you have Save Our Homes protection built up over time.

The Pros: Why Supporters Love This

Real relief for real homeowners. Florida homeowners have watched their tax bills climb steadily as property values surged, even with existing protections like the Save Our Homes assessment cap. For many families, especially those on fixed incomes, this would be meaningful, immediate financial relief.

More money stays in your pocket every year. Unlike a one-time rebate, a permanent increase in the homestead exemption lowers your bill annually. For the average Volusia homeowner, that's potentially hundreds to thousands of dollars per year.

Schools remain funded through property taxes. The amendment does not apply to school district levies, so homeowners would still pay the school portion of their property tax bill. Supporters also note that local governments would continue to collect property taxes for essential services such as law enforcement, fire protection, and emergency services.

It could make Florida homeownership even more attractive. Lower carrying costs make buying more accessible, which could benefit first-time buyers and people relocating to the area. Those are two groups I work with every day.

Landlords and investors get some relief too. HJR 1F also reduces the annual assessment increase cap on non-homestead properties from 10% to 5% starting in 2027. That applies to rental properties, vacation homes, and commercial real estate, giving investment property owners some protection against rapid assessment increases. Supporters argue this could also help moderate future rent increases for tenants.

The Cons: What Critics Are Worried About

A major hole in local government budgets. The revenue loss hits in two waves: an estimated $4.6 billion in 2027 when the $150,000 exemption kicks in, then growing to $8.4 billion per year from 2028 onward once the $250,000 exemption is fully in effect. Critics argue that local governments could still face serious budget pressures and may need to adjust spending priorities even with the remaining tax base. There is no clear plan yet for how cities and counties fill that gap.

Your other bills might go up. If local governments lose property tax revenue, they may raise fees, impose new charges, or cut services like parks, libraries, and public works to compensate. So the savings on one side could come with cost increases somewhere else.

Renters and investors could carry more of the burden. Investment properties, second homes, and vacation rentals don't qualify for the homestead exemption. As homesteaded properties drop off the tax roll, the relative burden on non-homesteaded properties may increase over time, even with the reduced 5% assessment cap.

It's not a complete elimination. The headlines have been dramatic, but this proposal does not eliminate property taxes entirely. School taxes remain, and the long-term path to full elimination still requires further legislation. What passes on November 3rd is a significant step, not the finish line.

It benefits higher-value homes less proportionally. A $250,000 exemption wipes out the bill for many modest homes entirely, but for a $600,000 home it's still only a partial reduction. The savings are real at every price point, but the percentage impact varies.

What Happens Next?

Here's the timeline to watch:

August 2026: Property appraisers are required to send a notice to homeowners explaining the proposed amendment alongside the annual TRIM (Truth in Millage) notice. The state will also provide a public website where homeowners can estimate their potential savings.

November 3, 2026: Florida voters decide. It needs 60% approval to pass. Because implementation details may continue to evolve through legislation and administrative rulemaking, homeowners should follow updates from the Florida Legislature and their local property appraiser's office.

January 1, 2027: If approved, the new $150,000 exemption takes effect, with an estimated $4.6 billion in annual revenue reduction statewide.

2028 and beyond: The exemption rises to $250,000 and is adjusted annually for inflation, with revenue impact growing to an estimated $8.4 billion per year. The Legislature is also directed to develop a process for local governments to continue increasing exemptions further, up to full elimination.

What This Means If You're Thinking About Buying or Selling

For buyers, especially first-time homebuyers, the potential of dramatically lower annual tax bills changes the rent vs. buy math significantly. Lower property taxes mean lower total housing costs, which means more people may be able to qualify or feel comfortable pulling the trigger on a home purchase.

For sellers, a market where buyers face lower carrying costs is generally a market with more demand. That's a good thing.

For anyone on the fence about locking in a home before the vote, it's worth having a real conversation with your Realtor and your lender about what your numbers look like under the current tax structure and what they could look like if this passes. There's also a timing consideration: residents who establish Florida homestead status on or before December 31, 2026 would qualify for the full expanded exemption when it takes effect. Those who establish homestead after January 1, 2027 would start with the existing exemption structure and become eligible for the enhanced exemption beginning in their fifth year of residency.

My lending partner Lindsay Ackerman (Motto Mortgage Signature Plus, NMLS #1822846) is a great resource if you want to run real numbers on what a purchase could look like for you right now. She can be reached at 386-523-7695 or Lindsay.Ackerman@MottoMortgage.com.

Frequently Asked Questions

Will Florida eliminate property taxes entirely? No. The proposal on the November 2026 ballot would significantly expand the homestead exemption for qualifying homeowners, but school district property taxes would remain in place.

Will renters benefit from this proposal? Renters do not receive a homestead exemption directly. However, supporters argue that limiting assessment increases on rental properties could help moderate future rent increases.

Do second homes or investment properties qualify? No. The expanded exemption applies only to qualifying homesteaded primary residences.

When would the changes take effect? If approved by at least 60% of voters on November 3, 2026, the first phase would take effect January 1, 2027.

What if I just moved to Florida? Residents who establish homestead status on or before December 31, 2026 qualify for the full expanded exemption. Those who establish homestead after January 1, 2027 would receive the existing exemption structure and become eligible for the enhanced exemption beginning in their fifth year of Florida homestead residency.

My Take as Your Local Volusia County Realtor

This is genuinely one of the most significant proposed changes to Florida's property tax structure in decades, and it's going to affect homeowners, buyers, renters, and local governments in ways we're still figuring out. My job is to make sure you have the real information, not just the headlines, so you can make smart decisions for your family.

If you have questions about what this could mean for your specific home, your buying power, or the Volusia County market in general, I'm always happy to talk.

📞 386-285-4081 📧 Kalie.luckenbaugh@gmail.com 🔑 Kalie Has the Keys

Kalie Luckenbaugh is a licensed Florida Realtor with Real Broker LLC serving Port Orange, South Daytona, Daytona Beach, Ormond Beach, New Smyrna Beach, and the greater Volusia County area. This blog is for informational purposes only and does not constitute legal or financial advice.

Sources

Florida House of Representatives. CS/HJR 1F (2026) — Save Our Homes from Excessive Property Taxes. flhouse.gov

Florida Realtors. "Property Tax Amendment Heads to Voters." floridarealtors.org, June 2026.

Jones Walker LLP. "Florida Legislature Places Major Property Tax Reform Amendment on November 2026 Ballot." jmco.com, June 2026.

Tax Foundation. "Florida Property Tax Proposal: 2026 Details and Analysis." taxfoundation.org, June 2026.

Florida Policy Institute. "Map: Projected Revenue Loss for Florida School Districts and Counties Under Governor's Property Tax Reform Proposal." floridapolicy.org, June 2026.

Florida Association of Counties. "ALERT: Property Tax Amendment Filed — Here's What It Says and What to Do." fl-counties.com, June 2026.

Ownwell. "Volusia County, Florida Property Taxes." ownwell.com, April 2026.

Barnes Walker. "Florida Property Tax Elimination: 2026 Ballot Proposals." barneswalker.com, May 2026.