Big Change Ahead: The "Save Our Homes" Amendment Just Passed the Legislature
CS/HJR 1-F could sharply raise the homestead exemption for permanent Florida residents — and it heads to voters on Nov. 3, 2026. See what it means for homeowners and buyers, plus the Dec. 31, 2026 residency date that matters most.
National Benchmark: The Florida Trade-Off
Florida's property tax system acts as the primary fiscal engine in the absence of a state income tax. While the effective rate of 0.91% seems competitive, the burden is distributed unevenly between long-term residents and recent market entrants.
Comparative Burden
Florida sits significantly lower than high-tax corridors like New Jersey (2.49%) but maintains a higher reliance on property value than peers like Alabama. This creates a high sensitivity to real estate market fluctuations.
The "Real" Rate
Because of "Save Our Homes" caps, the average effective rate for new buyers is often 40-60% higher than the statewide average reported in national statistics.
The New Buyer "Tax Shock"
One of the most significant risks for Florida homebuyers is the Assessment Reset. When a property is sold, the assessment limitation (cap) of the previous owner is removed. The property is re-assessed at 100% of the current market value on January 1st of the following year.
The Reset Trap
Buyers frequently estimate their future taxes based on the seller's current bill. In a rising market, this leads to a "sticker shock" where the tax bill can double or even triple in the first full year of ownership.
Same Property: Owner vs. Buyer Bill
Regional Variance: County Millage Rates
Millage rates are determined by local governments. Highly urbanized counties like Miami-Dade and Broward often have higher rates to support complex transit and service infrastructures compared to rural or high-luxury enclaves.
Millage Math
Excluding non-ad valorem assessments (waste, recycling, fire fees).
The Homestead Shield
While the reset is a threat, the Homestead Exemption is the primary defense for primary residents. It provides a dual benefit: immediate deduction and future protection.
Immediate Benefit
Up to $50,000 deduction from the property's assessed value.
Save Our Homes
Assessed value increases are capped at 3% or CPI annually.
Taxable Value Reduction
Market Trendlines: 2015-2025
Correlation between rising market valuations and total tax revenue collection.
Revenue Allocation
Portability Power
Florida residents can "port" their Save Our Homes tax savings (up to $500,000) from an old homestead to a new one, significantly reducing "Tax Shock."
