Understanding the Proposed 2026 Constitutional Amendment and What It Could Mean for Your Property Taxes
By Chris Day
Managing Broker | Worth Clark Realty
Last Updated: August 2026
Introduction
If you’ve been following Florida real estate news, you’ve probably heard about a proposed constitutional amendment that could significantly reduce property taxes for many Florida homeowners.
For buyers considering a move to The Villages®—and for current homeowners—this proposal has generated a great deal of interest because it could substantially increase Florida’s Homestead Exemption over the next several years.
The amendment has not yet been approved by voters. Florida voters will decide its fate during the November 2026 General Election.
If approved, the proposal would represent one of the most significant changes to Florida property taxes in decades.
Let’s take a look at what the proposal says, how Florida’s Homestead Exemption works today, and what homeowners should know.
What Is Florida’s Homestead Exemption?
One of the many financial benefits of making Florida your primary residence is the Homestead Exemption.
When you establish a Florida property as your permanent residence and qualify for homestead status, Florida law allows a portion of your home’s taxable value to be exempt from certain property taxes.
Currently, most homeowners receive up to $50,000 in Homestead Exemption.
This reduces the taxable value of the property, which can lower annual property taxes.
Florida’s Homestead Exemption also provides another important benefit many homeowners overlook—the Save Our Homes Assessment Cap.
Once a property qualifies for Homestead Exemption, annual increases in assessed value are generally limited, helping protect homeowners from dramatic increases in taxable value as market prices rise.
For retirees planning to stay in Florida for many years, this protection can become increasingly valuable over time.
What Is Being Proposed?
Florida lawmakers have approved a proposed constitutional amendment that will appear on the November 2026 ballot.
If approved by at least 60% of Florida voters, the amendment would substantially increase the Homestead Exemption.
Under the proposal:
- The Homestead Exemption would increase to $150,000 in 2027
- It would increase again to $250,000 in 2028
- Future increases would be adjusted periodically for inflation under the proposal
Because this is a constitutional amendment, it will not take effect unless Florida voters approve it.
Important Note
Throughout this article, remember that these proposed changes are not currently law.
Everything discussed below is based on the amendment as proposed by the Florida Legislature and remains subject to voter approval.
What Could This Mean for Homeowners?
If approved, the amendment could reduce the taxable value of many owner-occupied homes.
For example:
Current Law
Market Value
$400,000
Current Homestead Exemption
-$50,000
Taxable Value
$350,000
Proposed 2028 Example
Market Value
$400,000
Proposed Homestead Exemption
-$250,000
Taxable Value
$150,000
This example illustrates why the proposal has attracted so much attention.
A lower taxable value generally means lower property taxes, although the exact savings depend on several factors, including:
- County
- Municipal tax rates
- School taxes
- Community Development District (CDD) assessments
- Non-ad valorem assessments
- Individual property characteristics
Because every property is different, homeowners should avoid assuming a specific savings amount without reviewing their own tax situation.
Timing May Matter
The Five-Year Waiting Period: One of the Most Important Details in the Proposal
While the proposed increase in Florida’s Homestead Exemption has received most of the attention, one of the most significant—and often overlooked—parts of the amendment involves when you establish Florida residency.
Under the proposal currently scheduled for the November 2026 ballot, homeowners who are permanent Florida residents on or before December 31, 2026 would be eligible for the larger Homestead Exemption beginning in 2027 (if the amendment is approved).
However, the proposal creates a different path for individuals who establish Florida residency on or after January 1, 2027.
Rather than immediately qualifying for the increased exemption, those new Florida residents would initially receive the standard Homestead Exemption and would need to maintain Florida residency and a homestead exemption for four consecutive years before becoming eligible for the larger exemption beginning in the fifth year.
Why This Matters
For many retirees considering a move to The Villages®, timing could become an important financial consideration.
Assuming the amendment is approved by voters:
- Establish Florida residency on or before December 31, 2026: Eligible for the increased Homestead Exemption beginning in 2027.
- Establish Florida residency on or after January 1, 2027: Begin with the standard exemption and become eligible for the larger exemption only after completing four years of Florida homestead status, with the increased exemption first applying in the fifth year.
Depending on your home’s assessed value, county tax rates, and future legislation, that waiting period could represent several years of higher property taxes than someone who established Florida residency before the deadline. Because every property’s tax profile is different, the actual financial impact will vary.
Don’t Let the Tax Tail Wag the Dog
Although the proposed amendment could create a meaningful financial incentive to establish Florida residency before the end of 2026, I would never recommend purchasing the wrong home simply to meet a deadline.
Buying the right home, in the right neighborhood, at the right price should always come first.
That said, if you’ve already decided that Florida—and specifically The Villages®—is where you plan to retire, understanding this proposed residency timeline may help you make a more informed decision about when to make your move.
Finally, it’s important to remember that this entire proposal remains subject to voter approval in the November 2026 election. If approved, the Legislature will also need to adopt implementing laws that could clarify how certain provisions are administered.
What Doesn’t Change?
Even if the amendment is approved, not every item appearing on your annual property tax bill would disappear.
For example:
School Taxes
School district taxes are governed by different rules and would continue to apply, although a portion of the existing Homestead Exemption currently affects school taxes.
Community Development District (CDD) Assessments
CDD assessments help fund infrastructure within The Villages®.
These are non-ad valorem assessments and are not affected by the proposed Homestead Exemption.
Solid Waste & Other Assessments
Items such as:
- Solid waste
- Fire assessments
- Special assessments
would continue to appear where applicable.
The Save Our Homes Benefit Still Matters
One of Florida’s greatest long-term tax advantages remains the Save Our Homes assessment limitation.
Many retirees focus on today’s tax bill.
Equally important is understanding how your taxable value may be protected in future years.
When home values increase dramatically, the Save Our Homes cap can provide meaningful long-term tax savings.
Combined with the proposed Homestead changes, Florida would continue to offer one of the more attractive property tax environments for owner-occupied homes.
How Does This Affect Buyers in The Villages®?
The Villages® is unique because it spans three counties:
- Sumter County
- Lake County
- Marion County
Each county has different millage rates, meaning property taxes vary depending on where a home is located.
As a result, two homes with similar market values may have different annual tax bills simply because they are located in different counties or CDD districts.
When helping buyers compare homes, I often encourage them to look beyond the purchase price and understand the property’s overall tax profile.
That includes:
- County taxes
- Homestead eligibility
- CDD assessments
- Bond status
- Annual maintenance assessments
- Other ownership costs
Looking at the complete financial picture often leads to better long-term decisions.
Five Things Every Buyer Should Do
If you’re planning to make Florida your permanent residence, consider the following checklist:
✔ Establish Florida residency.
✔ Apply for Homestead Exemption if eligible.
✔ Update your Florida driver’s license and voter registration.
✔ Review your property’s estimated tax bill.
✔ Consult your county Property Appraiser or tax professional with questions about your specific situation.
My Thoughts
One thing I’ve learned after helping buyers and sellers throughout The Villages® for more than twenty years is that property taxes are only one part of the decision.
Finding the right home remains the most important priority.
That said, understanding Florida’s tax advantages—including the Homestead Exemption and Save Our Homes protections—can help buyers make more informed financial decisions.
If this proposed amendment is approved, it could become another meaningful benefit of owning a primary residence in Florida.
Whether you’re purchasing your first home in The Villages®, relocating from another state, or simply trying to understand how Florida property taxes work, taking time to learn about Homestead Exemption is well worth the effort.
Frequently Asked Questions
What is Florida’s Homestead Exemption?
A property tax benefit available to homeowners who establish a Florida property as their permanent residence and meet eligibility requirements.
Does the proposed amendment automatically become law?
No. Florida voters must approve the constitutional amendment before it takes effect.
Does Homestead Exemption eliminate all property taxes?
No. Certain taxes and non-ad valorem assessments, including many CDD assessments and solid waste fees, are not eliminated by the Homestead Exemption.
Does every homeowner qualify?
No. Homestead Exemption generally applies only to a homeowner’s primary Florida residence and must be applied for through the county Property Appraiser.
Where can I learn more?
Your county Property Appraiser’s Office and the Florida Department of Revenue provide the most up-to-date information regarding Homestead Exemption eligibility and property tax laws.
Disclaimer
This article is provided for general informational purposes only and should not be considered legal, tax, or financial advice. The proposed constitutional amendment discussed in this article has not been approved by Florida voters as of the date of publication and may be amended or rejected. Property tax laws, exemptions, and eligibility requirements can change. Every homeowner’s tax situation is unique. Please consult your county Property Appraiser, a qualified tax professional, or an attorney regarding your specific circumstances.