Bigger Tax Breaks for New Florida Buyers? Only If You Close Before The End Of 2026
What is the Florida Homestead Exemption?
If you are a permanent resident of Florida, the state offers a very unique and desirable tax perk called the Florida Homestead Exemption. The state offers up to $50,000 off of your home’s assessed value before it calculates your property tax. The Homestead Exemption also caps the increase in your property’s assessed value at 3% year over year. This results in huge savings every year for Florida property owners.
How is this exemption changing in 2027?
It was announced last month that Florida lawmakers have passed a new amendment to the Florida Homestead Exemption, which will appear on the ballot for Floridians to vote on in November. It states that instead of property owners only being eligible for up to $50,000 off of their property’s assessed value, they would be eligible for up to $150,000 in 2027, and up to $250,000 in 2028 and thereafter. The vote in November needs a 60% yes to pass, and it is highly likely to pass by a large margin.
How is this relevant to buyers in the current market?
To be eligible for these tax breaks starting in 2027, you must have established permanent Florida residency and applied for the exemption before the end of this year. If you purchase your home in 2027 and beyond, you still receive the homestead exemption at $50,000, but you must wait 5 years before being eligible for the $150,000 exemption, and subsequently 6 years to be eligible for the $250,000.
How is this relevant to sellers in the current market?
The real estate industry in Florida expects an unusually early influx of buyers and in higher numbers this year. Florida typically has a seasonality to its real estate market, with the ‘hot’ months starting around November/December and lasting through March/April. This year, it’s only July and we can already feel it ramping up. You will want to list your homes early and get on the MLS just before the rush to be as competitive in the market as possible.
What is the Florida Homestead Exemption?
If you are a permanent resident of Florida, the state offers a very unique and desirable tax perk called the Florida Homestead Exemption. The state offers up to $50,000 off of your home’s assessed value before it calculates your property tax. The Homestead Exemption also caps the increase in your property’s assessed value at 3% year over year. This results in huge savings every year for Florida property owners.
How is this exemption changing in 2027?
It was announced last month that Florida lawmakers have passed a new amendment to the Florida Homestead Exemption, which will appear on the ballot for Floridians to vote on in November. It states that instead of property owners only being eligible for up to $50,000 off of their property’s assessed value, they would be eligible for up to $150,000 in 2027, and up to $250,000 in 2028 and thereafter. The vote in November needs a 60% yes to pass, and it is highly likely to pass by a large margin.
How is this relevant to buyers in the current market?
To be eligible for these tax breaks starting in 2027, you must have established permanent Florida residency and applied for the exemption before the end of this year. If you purchase your home in 2027 and beyond, you still receive the homestead exemption at $50,000, but you must wait 5 years before being eligible for the $150,000 exemption, and subsequently 6 years to be eligible for the $250,000.
How is this relevant to sellers in the current market?
The real estate industry in Florida expects an unusually early influx of buyers and in higher numbers this year. Florida typically has a seasonality to its real estate market, with the ‘hot’ months starting around November/December and lasting through March/April. This year, it’s only July and we can already feel it ramping up. You will want to list your homes early and get on the MLS just before the rush to be as competitive in the market as possible.
Questions? Email me at kronaldson@kw.com
