Florida’s Proposed Property Tax Cut for Homeowners: CS/HJR 1-F & CS/SB 4-F Explained

Florida’s 2026 special-session package branded as the “Property Tax Cut for Florida Homeowners” is poised to represent one of the most substantial restructurings of local property taxation in the state's modern history. Core policy passed as CS/HJR 1-F places a constitutional amendment on the upcoming November 3, 2026 general-election ballot, supported by linked implementation bill CS/SB 4-F (enrolled June 24, 2026). To become active, the amendment requires at least 60% statewide voter approval. If approved, the changes take effect January 1, 2027.

From a real estate, homeownership, and municipal finance perspective, the potential scale of this amendment is massive. For Floridians who maintain permanent residency by the end of 2026, non-school homestead exemptions would expand dramatically from today's roughly $51,411 maximum structure in 2026 up to $150,000 in 2027, and scaling to $250,000 in 2028. Furthermore, it halves the assessment growth cap on non-homestead residential and commercial properties from 10% to 5%.

However, these changes carry significant trade-offs: state economists forecast a recurring annual local revenue loss of $11.8612 billion. Because school district taxes are structurally carved out, this impact is concentrated entirely on municipal, county, and special-district budgets.

What the Amendment Actually Changes: Side-by-Side Comparison

The proposal splits tax relief pathways based on residency timing, creating a distinct environment for existing residents versus post-2027 newcomers. Below is an overview of how current property tax rules compare directly to the proposed amendment structure.

A crucial distinction for homeowners and buyers is the preservation of the existing Save Our Homes portability. Homeowners moving homesteads within Florida will still be able to transfer up to $500,000 of accumulated capped-value benefits. Additionally, non-ad valorem assessments (e.g., solid-waste, lighting, PACE, and fire fees) are untouched and will still appear on property bills.

Assessment and Appeal Timeline Path

Should the amendment pass, the administrative flow of claiming homestead benefits, receiving tax estimates, and resolving disputes remains integrated into Florida's standard statutory calendar.

How the Numbers Look: South Florida Scenario Modeling

To isolate the mechanical impact of the constitutional amendment, this model holds assessed values constant, excludes non-ad valorem assessments, and applies official final county millage rates. Calculations are based on an established Florida resident qualifying for the maximum exemption tier.

Homeowners with Median Assessed Values

Applying these millage rates to actual median assessed homestead values demonstrates substantial savings.

Tax Scenario Visualizations by Homestead Tier

The charts below compare tax liabilities under current rules with the proposed 2027 and 2028 expansions for three property values: a $250k condo, a $500k single-family home, and a $1.5M high-value estate.

Statewide Fiscal Impacts & County-Level Budgets

While the savings for individual homeowners are clear, the statewide revenue implications are substantial. Florida’s Revenue Estimating Conference projects that the school district impact remains at $0, but the local non-school recurring impact is $11.8612 billion annually.

Of the $11.86 billion in annual recurring local revenue loss, the breakdown is as follows:
• Homestead Exemption Expansion: $9.6035 billion recurring loss.
• 5% Non-Homestead Residential Cap: $970.5 million recurring loss.
• 5% Non-Residential/Business Cap: $1.2872 billion recurring loss.

South Florida County Cash Loss Profiles

The fiscal crunch is highly localized in high-value, highly populated counties:

What It Means for Real Estate Professionals and Consumers

The amendment creates a fragmented environment for different market players, raising the importance of clean tax counseling and disclosure.

For buyers, the story split is stark. Buyers moving into Florida after the 2026 cutoff will face a delayed benefit structure. For sellers, the prospect of lower carrying costs is a strong marketing point, but listing agents must ensure they do not oversell the savings structure to out-of-state buyers.

Timeline & Implementation Watchlist

The legislative roadmap is established, but key details are still developing:

• November 3, 2026: Voters decide on the constitutional amendment (60% approval required).
• January 1, 2027: Proposed effective date. Exemption rises to $150,000 for qualified pre-2027 residents.
• March 1, 2027: Timely homestead application deadline for the 2027 tax year.
• January 1, 2028: Exemption reaches the full $250,000 tier for pre-2027 residents.

The Unsettled Details: While the constitutional text outlines the program framework, CS/SB 4-F primarily updates millage calculations. It leaves the specific "uniform procedures" for administrative tracking of the newcomer program and local-option exceptions to be defined by the Legislature and the Florida Department of Revenue. Real estate professionals should monitor forthcoming Department of Revenue bulletins, TRIM templates, and local appraiser website updates.