On May 26, Governor DeSantis released his property tax reform plan and signed a proclamation for a sixth Legislative Special Session. While the text of the Governor’s planned Constitutional Amendment has not yet been released, the details outlined in his press conference today include the following:

  • A $250,000 ad valorem property tax exemption for homestead properties. It appears this would apply to the first $250,000 in value of a home, making homes valued less than $250,000 fully exempt from all property taxes. It would include county, city, school, and special district ad valorem taxes.
  • Governor DeSantis suggested the proposal would grow to a $500,000 homestead exemption over time.
  • The new homestead exemption would require new Florida residents or first-time homebuyers to claim the lower homestead exemption for five years before receiving the new benefit.
  • The Constitutional proposal would earmark nonhomestead property tax receipts for “core” local government services, such as police and firefighters.
  • In addition to the additional homestead exemption, the Governor called for a reduction of the current cap on annual increases for nonhomestead properties from 10% to 5%. This applies to commercial, apartments, second homes, etc.
  • There will be one Amendment on the ballot.

More details to come as the Governor and Legislature release them. 

2026 Tax Package

The agreed annual tax package has been released and the text is available here. The Legislature is expected to vote on this bill and the other budget bills this Friday, May 29.

Some of the key provisions in the legislation include:

  • Creating a homestead property tax benefit for qualifying mobile home parks that are primarily comprised of long-term residential leases.
  • Revising the sales tax exemption for public works construction projects done by Universities and Colleges.
  • Moving the now-annual Back-to-School sales tax holiday to July 20 – August 20 of each year.
  • Exempting the sale of propane tanks weighing twenty pounds or less from the sales tax.
  • Providing a temporary sales tax holiday for certain hunting, fishing, and camping items from September through December 2026.
  • Reducing slot machine and cardroom taxes.
  • Clarifying when the Department of Revenue must pay interest on refund claims.
  • Creating a property tax exemption for qualifying fruit and vegetable packinghouses.
  • Prohibiting real estate listing platforms from including certain historic property taxes associated with the property for sale and instead directing prospective purchasers to a property tax estimation calculation.

This bill does not contain any annual Corporate Income Tax conformity / piggyback changes as that legislation was passed during the Regular Session. Recall, that bill would fully decouple Florida from all the relief provided by Trump and Congress in the One Big Beautiful Bill. We are still awaiting the Legislature to present HB 7031 (from Regular Session) to the Governor for consideration.

Update – Upon reviewing the proposed Constitutional Amendment and general bill released later in the day, the following key details are noted:

  • If a person establishes a permanent Florida residence by December 31, 2026, they would receive a $150,000 homestead exemption beginning January 1, 2027. On January 1, 2028, that homestead exemption will increase to $250,000 and remain thereafter.
  • If a person does not have an established permanent Florida residence by December 31, 2026, that person can only be eligible for the current $50,000 homestead exemption for the initial years of ownership. Beginning with the fifth year of exemption, the homestead exemption shall increase to $250,000. Beginning in 2030, local governments may waive this 5 year period by a two thirds vote of the governing body of a county, city, or school board or approval by referendum by the electors of a special district.
  • Beginning January 1, 2028, the $250,000 homestead exemption will be increased for any positive year-over-year change in the CPI.
  • The Constitutional Amendment directs the Legislature will, by general law, prescribe a uniform procedure for all counties, cities, and school districts to provide additional homestead exemptions “up to all remaining assessed valuation.”
  • Constitutionally mandates that county and city ad valorem taxes shall only fund:
    • Public safety, including law enforcement, fire service, and emergency medical service;
    • Education and public schools;
    • Finance or refinance infrastructure, including expenditures, on road and bridge construction and maintenance and stormwater control;
    • Finance or refinance natural resource project, including flood control measures;
    • Issue local bonds for uses consistent with this paragraph and to make debt service payments for existing obligations (does not address future obligations);
    • Meet obligations for retirement benefits of local government employees.
  • By general law, outlines a Notice of Proposed Constitutional Amendment that must be sent to all property owners in Florida and included with the annual Truth in Millage (TRIM) Notices that establish your 2026 property tax values. These Notices are sent in August.
  • The reduction of the nonhomestead cap from 10% annually to 5% annually will go into effect for the 2027 tax year, if approved by voters. The cap does not apply to school taxes, which is the same as the current 10% cap.
  • Mandates the Department of Revenue create a public website for estimated property tax savings by property address.