What the law gives you today, why the seller's tax bill misleads buyers, how to file by March 1, and what Amendment 3 on the November 3, 2026 ballot would change.
Reviewed and updated October 3, 2026 by Ryan and Megan Winslow, Winslow Homes
Florida has no state income tax, so local governments and schools rely on property taxes. The homestead exemption lowers the taxable value of the home you live in, and the Save Our Homes cap limits how fast that value can rise. Together they can save a long-time owner thousands of dollars every year.
For buyers, there is a catch. Those savings belong to the seller, not the house. When you buy, the assessed value resets to market value on January 1 after the sale. Ryan and Megan build the real tax number into every buyer's budget so there are no surprises in November.
This section describes current law in effect for the 2026 tax year. Nothing here depends on the November vote.
| Layer of assessed value | School taxes | Non-school taxes (county, city, special districts) |
|---|---|---|
| First $25,000 | Exempt | Exempt |
| $25,000 to $50,000 | Taxed | Taxed |
| $50,000 to $76,411 (second exemption, $26,411 for 2026) | Taxed | Exempt |
| Above $76,411 | Taxed | Taxed |
Since voters approved Amendment 5 in 2024, the second $25,000 exemption is adjusted each year by CPI. The Florida Department of Revenue set it at $25,722 for 2025 and $26,411 for 2026.
After the first year, the assessed value of a homestead can rise by no more than 3% or the change in CPI, whichever is lower. For 2026 the cap is 2.7%. The cap limits value, not the tax rate.
When you move from one Florida homestead to another, you can transfer the Save Our Homes difference, up to $500,000, if you establish the new homestead within three years of January 1 of the year you left the old one.
Property appraisers look at the full picture. Common proof includes:
You must own and live in the home on January 1, then file with the county property appraiser by March 1 of that year. Close in 2026 and live there on January 1, 2027, and you file by March 1, 2027. Once granted, the exemption renews automatically as long as you qualify.
File online or in person with the Volusia County Property Appraiser. Bring your deed information, Florida driver license and vehicle registration.
The Orange County Property Appraiser accepts homestead applications online with digital document upload.
File with the Osceola County Property Appraiser online or at its Kissimmee office.
The Miami-Dade Property Appraiser offers an online exemption filing account.
Moving from another Florida homestead? File Form DR-501T for portability along with the DR-501 homestead application by March 1. Missed the deadline? Contact the property appraiser right away; late filings are only accepted in limited circumstances.
These stack on top of homestead when you qualify. Most use Form DR-501 and require documentation.
| Exemption | Benefit | Statute |
|---|---|---|
| Veteran with a 10% or greater service-connected disability | $5,000 off assessed value | s. 196.24, F.S. |
| Veteran with a service-connected total and permanent disability | Full exemption on homestead | s. 196.081, F.S. |
| Veteran 65 or older with a combat related disability | Discount equal to the disability percentage | s. 196.082, F.S. |
| Widow or widower, blind person, or totally and permanently disabled person | $5,000 off assessed value | s. 196.202, F.S. |
| Quadriplegic | Full exemption on homestead | s. 196.101, F.S. |
| Paraplegic, hemiplegic or other disability requiring a wheelchair, or legally blind, under the income limit | Full exemption on homestead | s. 196.101, F.S. |
| Senior 65 or older under the income limit (local option) | Up to $50,000 additional where the county or city adopts it | s. 196.075, F.S. |
| Long-term senior resident, 25 years in the home, just value under $250,000, under the income limit (local option) | Up to the full assessed value | s. 196.075, F.S. |
| Surviving spouse of a first responder who died in the line of duty | Full exemption on homestead | s. 196.081, F.S. |
Veterans: read our VA loan guide for how these exemptions work with a VA purchase.
A listing may show taxes of $2,200 a year on a $400,000 home. That is often the seller's bill after years of the Save Our Homes cap. On January 1 after you buy, the property appraiser resets the assessed value to market value. Your new exemption then starts from that higher number.
A $400,000 home. The seller has owned it for years and has an assessed value of $180,000. The example uses a combined rate of 16 mills (6 school and 10 non-school) only to show the math. Actual rates vary by city and district; check the TRIM notice for the address.
| Line | Seller (homestead, capped) | Buyer with homestead (2026 law) | Buyer without homestead |
|---|---|---|---|
| Assessed value | $180,000 | $400,000 | $400,000 |
| School taxable value | $155,000 | $375,000 | $400,000 |
| School tax at 6 mills | $930 | $2,250 | $2,400 |
| Non-school taxable value | $128,589 | $348,589 | $400,000 |
| Non-school tax at 10 mills | $1,286 | $3,486 | $4,000 |
| Estimated annual tax | About $2,216 | About $5,736 | About $6,400 |
One mill equals $1 of tax per $1,000 of taxable value. Non-assessment charges such as solid waste or stormwater fees are extra. Your first year after closing may be billed without homestead if you did not own and live in the home on January 1.
Everything in this section is a proposal. It becomes law only if at least 60% of voters approve it on November 3, 2026. If approved, most provisions take effect January 1, 2027.
Owners who become Florida residents on or after January 1, 2027 would start with a smaller exemption: $25,000 for school taxes and $50,000 for non-school taxes, indexed to inflation beginning in 2028. After four years with a homestead exemption, they would qualify for the full larger amount starting January 1 of the fifth year. People who are Florida residents by December 31, 2026 would get the full amounts once their homestead is approved.
State economists estimated reductions in local non-school property tax revenue of about $4.95 billion in FY 2027-28, $8.78 billion in FY 2028-29 and $11.86 billion on a recurring basis. Orange County projects losses of $165 million in 2027 and $275 million in 2028, including fire and sheriff budgets. Local governments may respond with spending cuts, higher millage on remaining taxable value, or new fees.
| Same $400,000 homestead, current resident, 16 mills held constant | 2026 (law today) | 2027 if approved | 2028 if approved |
|---|---|---|---|
| Non-school exemption | $51,411 | $150,000 | $250,000 |
| Non-school tax at 10 mills | $3,486 | $2,500 | $1,500 |
| School tax at 6 mills | $2,250 | $2,250 | $2,250 |
| Estimated total | About $5,736 | About $4,750 | About $3,750 |
This projection holds tax rates and value constant to isolate the exemption change. Real bills will depend on millage decisions, value changes and school taxes, which Amendment 3 does not reduce.
Signed in June 2026 and effective on signing. It changes how local governments set maximum tax rates, removes the automatic income growth adjustment to the rolled-back rate, and requires a two-thirds vote to exceed the rolled-back rate up to 110%, with higher thresholds or a referendum beyond that.
Signed in June 2026 and effective January 1, 2027. It requires local governments to post tentative and final budgets online with detailed downloadable data and to complete budget reduction exercises.
The $25,000 plus indexed second exemption, the Save Our Homes cap, portability and the March 1 deadline all remain the same for 2026 and 2027 filings unless the amendment passes.
Large savings on non-school taxes starting in 2027, on top of portability. This group gains the most.
If you establish Florida residency by December 31, 2026, you would qualify for the full amounts. Residency starting in 2027 or later means the smaller exemption for the first four years.
Lower non-school bills, though owners with low capped values may see smaller dollar savings because their taxable value is already low.
Second home, rental and commercial owners get a 5% cap instead of 10% on non-school assessments, but could face higher millage if local governments shift the burden.
Counties and cities warn of service cuts. Watch for fee increases, impact fees and changes to fire and law enforcement budgets.
Lower carrying costs could increase demand for owner-occupied homes. No one can promise the market effect, so buy on today's numbers.
You cannot control the vote, but you can control your budget, your residency documents and your filing dates. These six steps protect you under current law and position you to benefit if Amendment 3 passes.
Qualify for your loan using today's taxes at the full purchase price. Treat any amendment savings as a bonus.
If you are relocating, document Florida residency in 2026 where it is genuine: license, registration, voter registration and declaration of domicile.
Own and live in the home on January 1, 2027 to file homestead by March 1, 2027.
Moving from another Florida homestead? File DR-501T and keep your savings, up to $500,000.
Each August the TRIM notice shows proposed millage and hearings. That is when local tax decisions are made.
Know the November 3, 2026 result, then confirm with your property appraiser how it applies to your parcel.
By March 1 of the year after you own and occupy the home on January 1. You file once; it renews automatically.
Usually not. The assessed value resets to market value on January 1 after the sale.
No. Amendment 3 would expand the non-school exemption only if 60% of voters approve it on November 3, 2026. School taxes would remain.
Yes, within Florida, through portability of up to $500,000 if you establish the new homestead within three years.
Renting the home can cost you the exemption. Talk to your property appraiser before you list it for rent.
No. Homestead is only for your permanent residence. Second homes pay full taxes with a 10% non-school assessment cap.
Ryan and Megan Winslow estimate the true post-closing tax bill on every home you consider, help you file homestead and portability, and keep you updated on Amendment 3. Licensed brokers in Florida, Massachusetts, Connecticut and Rhode Island with 17 years and 3,000+ homes sold, and Mortgage Bankers with The Federal Savings Bank. Ryan C Winslow NMLS 2426605. Megan Winslow NMLS 2692933.
Call 386-690-5858 or email [email protected]. See the property taxes guide and Florida real estate guide.
Sources: Florida Department of Revenue PT-113, DOR Save Our Homes and portability, DOR CPI homestead exemption amounts, DOR PT-109, DOR PT-110, DOR PT-111, Martin County Property Appraiser 2026 SOH, Florida House analysis of CS/HJR 1F, Florida House HJR 203, Pinellas County Property Appraiser Amendment 3 FAQ, Orange County Amendment 3, FICPA legislative update, WKMG on SB 4-F and HB 1329. Updated October 2026. Rules change; confirm with Ryan and Megan before you act.
