Florida's New Homestead Exemption: Why December 31, 2026 Matters for Florida Residents

Florida voters recently approved Amendment 3, a constitutional amendment that will increase the homestead exemption for qualifying Florida homeowners beginning in 2027. The change is expected to provide additional property tax savings for many homeowners, but when you establish Florida residency could affect when you become eligible for the increased exemption.

Under the new law, individuals who establish Florida permanent residency by December 31, 2026, may qualify for the increased exemption without the five-year waiting period that applies to those who establish residency beginning January 1, 2027.

Whether you currently live in Florida, are considering relocating to the Sunshine State, or are planning to purchase a home here, understanding what Amendment 3 means and how it could affect you is important.

What Is Changing Under Florida's New Homestead Law?

A homestead exemption reduces the assessed value of a qualifying primary residence for property tax purposes. Florida homeowners have historically been able to receive a homestead exemption of up to $50,000, subject to the applicable tax requirements.

Under the newly approved Amendment 3, the exemption for non-school property taxes will increase in two stages:

• 2027: Up to $150,000 of assessed property value will be exempt from non-school property taxes.

• 2028: The exemption will increase to up to $250,000 of assessed property value for non-school property taxes.

• 2029 and beyond: The exemption amount will be adjusted for inflation.

It is important to understand that these increased exemption amounts do not apply to school district property taxes. The existing $25,000 school tax exemption remains in place.

The actual amount of property tax savings will vary depending on the property's assessed value, applicable tax rates, and other exemptions.

Why Does December 31, 2026 Matter?

One of the most important parts of Amendment 3 is the distinction between individuals who are Florida residents by December 31, 2026, and those who establish Florida residency on or after January 1, 2027.

Individuals who maintain Florida permanent residency as of December 31, 2026, may qualify for the increased homestead exemption when they meet the other requirements for a homestead exemption.

However, individuals who establish Florida residency on or after January 1, 2027, will initially receive a smaller exemption. Under the new law, these homeowners may receive an exemption of up to $50,000 for non-school property taxes, with eligibility for the increased exemption beginning in their fifth year of receiving the homestead exemption.

This means establishing Florida residency before the end of 2026 could make a significant difference in when you become eligible for the increased tax benefits.

You do not necessarily need to own a Florida home by December 31, 2026, to benefit from this provision. Individuals who establish Florida permanent residency by that date may still qualify for the increased exemption when they later purchase a qualifying home and apply for homestead.

How Do You Establish Florida Residency?

Establishing Florida residency involves more than simply owning property in the state. Your permanent residence should genuinely be Florida, and you may need documentation to demonstrate your intent to make Florida your permanent home.

Some steps that may help establish Florida residency include:

• Obtaining a Florida driver's license or state identification card.

• Registering your vehicles in Florida.

• Registering to vote in Florida, if eligible.

• Filing a Declaration of Domicile with the appropriate county clerk.

• Updating your mailing address and other important personal records to reflect your Florida residence.

These are examples of documentation and actions that may help demonstrate residency. No single step automatically guarantees that you qualify. Your individual circumstances and the applicable legal requirements will determine whether Florida is considered your permanent residence.

Don't Forget to Apply for Your Homestead Exemption

Establishing Florida residency and qualifying for a homestead exemption are two separate considerations.

To receive a homestead exemption, you must generally own the qualifying property and make it your permanent residence as of January 1 of the tax year. You must also submit an application to the Property Appraiser's Office in the county where the property is located.

For the 2027 tax year, the standard application deadline is March 1, 2027.

If you are planning to purchase a home or make Florida your permanent residence, it is important to understand both the residency requirements and the homestead application process.

Planning Ahead for Florida's New Homestead Benefits

Florida's new homestead exemption provides an opportunity for qualifying homeowners to receive additional property tax savings. However, the December 31, 2026 residency distinction makes it especially important to understand how and when you establish your permanent residence.

Whether you are purchasing your first Florida home, relocating from another state, or already own property in Florida, taking the time to understand these changes can help you make informed decisions.

Navigating changes to Florida's homestead laws can raise questions about residency, eligibility, and the steps needed to protect your interests. Bosshardt Law can help you better understand how these changes may affect your individual circumstances and provide guidance as you plan for the future.

Have questions about establishing Florida residency or Florida's new homestead requirements? Contact Bosshardt Law to discuss your options.