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IS FLORIDA GOING TO ABOLISH PROPERTY TAXES
Is it true that Governor Ron DeSantis is abolishing property taxes in Florida later this year?
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2 Replies
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The statement that Governor Ron DeSantis is going to eliminate property taxes is inaccurate. Gov. Ron DeSantis will not abolish all Florida property taxes in 2026, nor will he be able to do so by executive order.
What will happen is that Florida voters will see a potential constitutional amendment in November 2026 that will:
- Increase the homestead exemption from $50,000 to $150,000 effective January 1, 2027.
- Increase the homestead exemption to $250,000 effective January 1, 2028.
- Primarily affect non-school property taxes for owner-occupied homestead properties.
- Keep school-district property taxes.
- Create a system that allows future increases in this exemption, so it does not eliminate all property taxes for a homeowner.
For this amendment to pass, it will need at least 60% approval from Florida voters. It will remain a proposal until then. Even with approval, the increase will not go into effect until the 2027 tax year.
This means homeowners can expect their 2026 property taxes to remain due as usual. Property taxes will still be collected as normal, so homeowners need to plan for taxes.
A better headline would be:
Florida voters will see a substantial increase in the homestead property tax exemption beginning in 2027 if the proposal passes.
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The proposed Florida property tax change has the potential to reduce or eliminate certain types of property taxes for primary residences. However, property taxes for school district property and certain special assessments would likely remain. Existing property tax bills would not be impacted by this new proposal until at least November 2026.
Even if the proposal receives 60% voter approval, the new, larger property tax exemptions would not be realized until 2027. Property taxes would likely see another increase in 2028.
To illustrate how the property tax proposal may impact a Florida homeowner, the examples below use estimated tax figures on a home located in Ocala. Exact property tax bills would be based on several factors, including, but not limited to, the assessed and taxable value of the home, the taxing district, special assessments, and the homeowner’s homestead status.
Assuming that a homeowner’s primary residence is in Ocala and has an approximate market and assessed value of $250,000, the homeowner would likely already receive the Florida homestead exemption.
Property taxes on the homeowner’s residence would likely be $3,600, an increase of $1,500 from the previous year’s taxes of $2,100. This equates to an approximate increase of $125 monthly.
The $3,600 property tax bill consists of taxes collected for public schools and by the county, city, and other local government authorities. The proposed exemption would lessen the non-school portion of the property tax bill. It would not affect the school portion.
Regular Working Homeowner
Let’s say John, age 45, has a full-time job, owns a $250,000 home in Ocala, and uses it as his primary residence.
John’s job would not disqualify him from the proposed exemption. The only stipulation would be that the home would be his Florida homestead. There would be no requirement for him to be retired, disabled, or of low income.
John pays $3,600 in property taxes. With the local tax rates used in this example, about $1,400 of that total would be school district taxes. The majority of the remaining balance would be taxes for non-school property.
If the proposed amendment passes, the non-school homestead exemption would be up to $150,000 in 2027. For a $250,000 home, that would mean $150,000 in homestead exemption on non-school property taxes, leaving $100,000 as the taxable value.
John’s 2027 property taxes would be an estimated $2,500 instead of $3,600. John would be an estimated $1,100 better off in property taxes, or $91 better off each month.
John would be approximately $400 worse off in property taxes than the previous $2,100. The proposed exemption would eliminate most of the recent $1,500 property tax increase.
By 2028, the planned non-school exemption might rise to $250,000. Since John’s home is appraised at nearly $250,000, it’s possible that non-school property taxes won’t be assessed at all.
John is still liable for the property taxes owed to the school district. In this case, John’s estimated bill may be around $1,400 annually, in addition to other special assessments or fees that the exemption does not cover.
Considering the current property tax bill of $3,600, John would save about $2,200 annually, which is about $183 monthly. He would also pay about $700 less than his $2,100 tax bill in 2028.
Senior Homeowners on Social Security
Imagine now that Jane is 70, retired, and holds the same primary residence in Ocala, Florida, appraised at $250,000. Jane and her spouse have a combined Social Security income of $4,400 per month, or $52,800 per year.
On the whole, Jane would be in line for the same proposed statewide homestead tax reduction as John. The proposed exemption would be based on the home being a Florida retirement, owner-occupied homestead, and would not consider whether the homeowner was employed or retired.
Based on the example above, Jane’s estimated tax bill for 2027 would be reduced from about $3,600 to $2,500. The savings in this case would be about $1,100 per year or $91 per month.
In 2028, Jane’s property tax may be about $1,400 annually, plus special assessments. Jane would save about $2,200 per year, or $183 per month, compared with her current property tax of $3,600.
For a senior citizen on a fixed income, estimated monthly savings of $91 in 2027 and $183 in 2028 would be a welcome, but partial, savings from property taxes, since the property tax payment will still be owed.
Would the Senior Homeowner Receive an Additional Exemption?
In Florida, seniors 65 and older do not automatically have property taxes eliminated. Additional low-income senior exemptions may be available in some counties and municipalities, and the senior must meet additional qualifying criteria.
A senior must be 65 years old, have their primary residence be the subject property, and have a household income that meets the low-income threshold. Additionally, the locality’s governing body must have a senior exemption program.
Jane’s household receives approximately $52,800 each year in Social Security. With the senior exemption income threshold being approximately $38,686, Jane is about $14,114 over the threshold and will likely not be eligible for the low-income senior exemption.
Long Term Senior Property Tax Exemption
A property may also fail to qualify for a long-term senior exemption if it has not been the homeowner’s primary residence for 25 years or more, even if the homeowner meets the income requirements. For a property whose value is exactly $250,000, it may not qualify if the just value is required to be less than $250,000.
It is still important for Jane to contact the Marion County Property Appraiser’s Office. With that contact, the Office will know whether any part of her Social Security income is excluded from the calculation and whether she might qualify for other exemptions based on disability, widow or widower status, veteran status, or long-term residency.
Why Property Tax Bill May Not Hit the Floor
There may be a number of line items in a property tax bill, called non-ad valorem assessments. These are charges that may not be assessed solely on the value of the home and may provide services such as solid-waste collection, service line extensions for fire protection, road improvements, or stormwater services, or may be for a community development district.
For these reasons, a $250,000 Ocala home may not have a property tax bill of zero. For these reasons, the $3,600 bill may be $2,500 in 2027, $1,400 in 2028, and include other assessments.
What the Homeowner Should Do Now
The Homeowner should continue paying the current property tax and mortgage escrow amounts in full. The Homeowner should not reduce or cease escrow payments on the basis of the proposed amendment. If the voters of the State of Florida approve the proposed amendment, the Property Appraiser would have a duty to implement the new exemption in accordance with the law. Following the new tax bill, the Mortgage Servicer would be obligated to conduct an escrow analysis.
If a homeowner’s escrow account has a surplus, the servicer may lower the monthly mortgage payment or give an escrow refund. The adjustment may not occur until some time after the change is legislated.
The homeowner should review the property tax bill and explain why it increased from $2,100 to $3,600. A tax bill increase could be a result of property value reassessment after the property was purchased, the prior owner’s Save Our Homes benefit being eliminated, the addition of new construction, loss of the homestead exemption, an increase in local tax assessment rates, or new local tax special assessments.
New Florida homeowners often see large increases in property tax bills that may be a result of Florida’s Save Our Homes benefit and assessment cap, which formerly applied to the prior owner. Following the sale of the property, it may be reassessed at the current market value. Future protection may be provided by applying for a homestead exemption, but it will not result in the previous owner’s assessed value being retained.
The Florida homeowner should check that the homestead exemption was granted, the assessed value, and the deadlines for tax appeals. This should be done after a property tax bill increases from $2,100 to $3,600 in one year.
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