Florida voters will decide in November whether to cut homeowner property tax bills to near zero — here's what that means in practice
The Florida Legislature voted Tuesday to place a sweeping property tax measure on the November 2026 ballot that could eliminate property tax bills for the majority of the state's primary homeowners.
The shift carries significant consequences for monthly mortgage payments, loan eligibility, and long-term home values across the Sunshine State.
House Joint Resolution 1F passed 75–26 in the House and 30–9 in the Senate during a special session in Tallahassee. To take effect, the constitutional amendment must secure 60% voter support in November.
Under the proposal, Florida's existing $50,000 homestead exemption would rise to $150,000 on January 1, 2027, and increase again to $250,000 on January 1, 2028.
The exemption applies to non-school property taxes only. School district levies remain, shielded by a late amendment adopted the day before the final vote.
Who qualifies and what the bill change means in dollars
For homeowners who already hold a homestead exemption, the expanded benefit would apply automatically. No new filing is required beyond the standard county property appraiser application already on record.
Florida's current homestead exemption reduces a home's assessed value by $50,000, saving the average homeowner approximately $550 to $700 per year.
Under the new framework, that relief would multiply substantially, and roughly 60% of homesteaded Florida homeowners could see their non-school property tax reduced to zero by 2028, largely because the Save Our Homes cap has kept long-time owners' assessed values far below market value.
According to a 2024 Redfin analysis, median monthly property tax bills in Tampa and Jacksonville have surged approximately 57% and 60% respectively since 2019, among the steepest increases recorded in any major US metro area.
For many Florida homeowners, those increases have pushed escrow-adjusted mortgage payments well beyond what was quoted at closing. Even modest monthly payment relief carries outsized weight for borrowers already squeezed by rate volatility.
Read more: Mortgage rate rebound dims spring affordability gains
The mortgage angle: escrow relief with a catch
For mortgage professionals, the amendment's most immediate effect is on escrow calculations. Lower property tax obligations would reduce the monthly escrow component of a principal, interest, taxes, and insurance (PITI) payment, improving debt-to-income ratios at origination and broadening the pool of borrowers who qualify.
Mortgage Professional America's earlier reporting on Florida's property tax reform debate captured the borrower-side dynamic plainly: reduced monthly obligations allow buyers to qualify for larger loans, but that expanded purchasing power tends to push prices higher, a mechanism that can erode affordability gains for new entrants to the market.
“If we kick property taxes out, I think it'll double up property taxes on people that are buying vacation homes and condos,” said Elizabeth Cassidy, loan officer with Edge Home Finance.
“That’s going to deter them from treating Florida as if it's their playground.”
A Realtor.com analysis estimated that eliminating homestead property taxes could lift Florida home values by roughly 7% to 9%, adding approximately $200 billion to $250 billion in aggregate owner-occupied housing value statewide.
Florida's housing market has already posted eight consecutive months of rising sales, according to Florida Realtors data, with the statewide median single-family price reaching $420,000 in April 2026, a market where additional demand stimulus could accelerate appreciation further.
Read more: Florida home values could soar if DeSantis axes property tax
Residents who establish primary Florida residency on or before December 31 would be eligible for the expanded exemption when it takes effect. Those who move to the state after that deadline would need to wait four years before qualifying for the full $250,000 exemption.
The measure also lowers the annual assessment cap on non-homestead properties, including investment homes and commercial real estate, from 10% to 5%.
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