Florida may be on the verge of one of the most significant property tax reforms in state history.In June 2026, Florida lawmakers approved a proposal that would dramatically reduce property taxes formany homeowners. The proposal, strongly supported by Governor Ron DeSantis, will now head toFlorida voters in the November 2026 election. If approved, it could reshape the cost of homeownershipacross the state for years to come.
What Is Changing?
The proposal focuses on expanding Florida’s homestead exemption, which reduces the taxable value ofa primary residence.Currently, Florida homeowners can receive up to a $50,000 homestead exemption. Under the newproposal:The exemption would increase to $150,000 in 2027.It would increase again to $250,000 in 2028.The expanded exemption would apply to non-school property taxes.Many primary homeowners could see a substantial reduction in their annual property tax bills. For some homeowners, this could eliminate most county and city property taxes altogether, leaving onlyschool-related taxes.
A Major Benefit for Existing Residents
One of the most talked-about aspects of the proposal is that it favors current Florida residents.To qualify immediately for the expanded benefits, homeowners must establish Florida as their primaryresidence by December 31, 2026. Buyers who move to Florida after that date could face a waiting periodbefore receiving the full benefits. This provision could create additional urgency for buyers already considering a move to Florida beforethe end of 2026.
Why Florida Is Considering This Change
Property taxes have become a growing concern across Florida.Home values have risen dramatically over the past several years, leading to higher assessments andlarger tax bills. At the same time, homeowners have faced increasing insurance costs and overallaffordability challenges. State leaders argue that property tax relief is needed to help residents stay intheir homes and manage rising housing expense Supporters believe the reform could make Florida even more attractive to families, retirees, and remoteworkers relocating from higher-tax states.
Potential Concerns
Not everyone supports the proposal.Critics warn that reducing property tax revenue could create funding challenges for local governments.Property taxes currently help fund services such as:Public safetyFire departmentsRoad maintenanceParks and recreationInfrastructure improvementsSome local officials have expressed concern that large tax reductions could eventually requirealternative revenue sources or budget cuts.
What This Means for Orlando Homebuyers
For buyers considering a home purchase in Orlando or Central Florida, the proposal could significantlyimprove long-term affordability.Lower annual property taxes can reduce the total cost of homeownership and may improve monthlyhousing budgets. However, because the proposal still requires voter approval in November 2026, buyersshould continue making decisions based on current tax rules rather than assuming future saving
Final Thoughts
Florida’s proposed property tax reform could become one of the largest homeowner tax cuts in statehistory. If approved by voters, many homeowners would see substantial reductions in their property taxburden beginning in 2027.While questions remain about how local governments would replace lost revenue, the proposalrepresents a major shift in Florida’s approach to housing affordability and homeownership costs.As the November 2026 vote approaches, homeowners, buyers, and real estate investors across Floridawill be watching closely
Fabiola Meneses Orlando Realtor® | Wemert Group Realty 