Florida lawmakers passed a major win for economic freedom as Americans continue to flee high-tax blue states. The Florida Legislature cleared a historic, DeSantis-backed constitutional amendment for the November 2026 ballot. This proposal could eliminate non-school property taxes for many homeowners through a proposed $250,000 homestead exemption.
"I think it will be particularly appealing to people leaving the Northeast and other high-tax states who are evaluating where to establish permanent residency," Douglas Elliman’s Nick Malinosky told Fox News Digital. "The state already wins on weather and lifestyle. Tax policy simply becomes another advantage in an increasingly competitive relocation landscape."
"This proposal could strengthen that appeal, particularly among households planning a permanent move rather than purchasing a second home," Elliman colleague Lourdes Alatriste added. "I think it could encourage more families, retirees and remote workers to establish Florida residency."
"The biggest beneficiaries may be families and retirees looking to establish permanent residency and maximize long-term savings," The Corcoran Group’s Mick Duchon agreed.
If Florida voters approve House Joint Resolution 1-F in November, the tax-exempt amount of a home's value would increase significantly over the next two years. On Jan. 1, 2027, the homestead exemption would increase from the existing $50,000 to $150,000.
One year later, in 2028, the homestead exemption would rise to $250,000. For some Florida homeowners, this massive change could reduce non-school local property taxes to zero.
A Florida Senate press release stated that this sets up the framework "for full exemption over time."
Residents who establish primary Florida residency on or before Dec. 31, 2026, would be eligible for the expanded exemption when it takes effect. However, those who move to the state after that deadline would have to wait four years before qualifying for the full $250,000 tax break.
"By increasing the homestead exemption, the proposal could help reduce the tax burden on primary residences and provide homeowners with greater financial flexibility year after year," Alatriste said.
"What I'm hearing from clients is less about speculation and more about affordability," Douglas Elliman’s Senada Adzem said. "Buyers see it as a potential way to reduce their long-term cost of ownership, while existing homeowners view it as meaningful relief in a market where insurance, maintenance and other housing expenses have continued to climb."
"Whether someone owns a $500,000 home or a $20 million home," Malinosky added, "everyone has felt the impact of rising ownership costs over the past several years. Clients are encouraged that lawmakers are looking at ways to provide tax relief."
The amendment's language would also reduce the annual assessment increase cap on non-homestead properties. This includes many commercial properties, dropping the assessment cap from 10 percent to 5 percent per year.
This massive tax break would not apply to school board taxes. Local governments would also be required to prioritize their remaining property tax revenue for essential public services. These critical areas include police, fire rescue, infrastructure, flood-control projects, and government employee pensions.
"The strongest argument in favor is that it offers relief to Florida homeowners at a time when affordability remains a major concern," Alatriste said. "The biggest challenge will be answering questions about how local governments and school districts would offset the reduction in tax revenue."
"Voters will likely support the concept of tax relief, but they'll also want transparency regarding schools, public safety, infrastructure and municipal budgets," Duchon noted. "If lawmakers can clearly address those concerns, the proposal has a strong chance of gaining broad support."
"The strongest selling point is affordability," Malinosky said. "I think voters are generally supportive of tax relief, but they will want clear answers before approving a constitutional amendment of this magnitude."