Florida Homestead Tax Changes 2027: Why Buy Now?
- Carlos Morean
- November 5, 2026
By Carlos Morean | Real Estate Advisor, Compass | Miami, Florida
Florida voters have approved a major property tax reform that could make homeownership significantly more attractive, particularly for buyers considering relocating to Florida.
On November 3, 2026, voters approved Amendment 3, increasing the Homestead Exemption and introducing additional protections for investment properties, second homes, and commercial real estate.
For prospective buyers, December 31, 2026, is now an important date to consider.
The new amendment substantially increases the amount of a primary residence's assessed value exempt from non-school property taxes:
School district property taxes remain unaffected by the expanded exemption.
What does this mean for homeowners?
A qualifying homeowner could benefit from an additional $200,000 in exempt assessed value by 2028 compared with 2026.
At a hypothetical non-school tax rate of 1%, that could translate into approximately $2,000 in annual savings, depending on the property and applicable taxes.
One of the amendment's most significant provisions concerns new Florida residents.
Individuals establishing permanent Florida residency after December 31, 2026, generally face a five-year waiting periodbefore becoming eligible for the expanded exemption.
Existing Florida residents may qualify for the increased benefits without that waiting period.
Importantly, purchasing a home before December 31 does not automatically establish Florida residency or guarantee eligibility.
For buyers considering relocating to Miami, understanding these deadlines could make a meaningful financial difference.
The reform also reduces the annual assessment growth cap for qualifying non-homesteaded properties from 10% to 5%, beginning in 2027.
This provides additional protection against rapid increases in assessed values for rental properties, vacation homes, and commercial real estate.
Although it does not guarantee lower taxes, it may improve long-term investment predictability.
These changes create important opportunities for buyers and investors:
However, timing is only one part of a successful real estate decision. Property values, financing, insurance, condominium fees, and market conditions must also be carefully evaluated.
As a top Miami Realtor with more than 25 years of experience in banking, finance, and real estate, I can help you navigate the homebuying process and evaluate the financial implications of these changes.
Whether you're relocating to Florida, purchasing your primary residence, or expanding your real estate investment portfolio, I can help you identify opportunities, analyze property values, and make informed decisions.
Considering buying in Miami? Now is the time to explore your options.
Carlos MoreanPh: (305) 281-2581
Disclaimer: Property tax benefits depend on individual eligibility and applicable law. Consult a qualified tax professional or the county property appraiser to confirm eligibility and potential savings.
