For those considering Florida residency, December 31, 2026 is now an important date.
Florida voters approved Amendment 3 on Tuesday, with approximately 62% voting in favor of a substantial expansion of the state’s homestead property tax exemption.
The measure will provide meaningful property tax relief for qualifying homeowners beginning in 2027. But for those contemplating a move to Florida, one provision deserves particular attention: residency established by December 31, 2026 could make a significant difference in when the expanded benefits become available.
WHAT’S CHANGING?
A Substantial Increase in the Homestead Exemption
Amendment 3 increases Florida’s homestead exemption for property taxes other than school district taxes.
2027 | $150,000 Exemption — The exemption increases from approximately $50,000 to $150,000.
2028 | $250,000 Exemption — The exemption increases again to $250,000.
2029 and Beyond | Inflation Adjustments — The expanded exemption will adjust annually for inflation.
These amounts represent reductions in a property’s taxable assessed value, not dollar-for-dollar reductions in property taxes. Actual savings will depend on the property’s assessed value and applicable local tax rates.
WHY DECEMBER 31 MATTERS
A Critical Date for Prospective Florida Residents
One of the amendment’s most consequential provisions concerns new Florida residents.
Those who are Florida residents by December 31, 2026 may qualify for the expanded exemption as it takes effect, provided they meet the applicable homestead requirements.
Individuals establishing Florida residency after that date will initially receive the existing exemption, with eligibility for the expanded benefit beginning in their fifth year of homestead exemption.
For anyone already considering relocating to Palm Beach County, this introduces an important timing consideration.
To qualify for the 2027 homestead exemption, homeowners generally must:
· Own and occupy their Florida property as their permanent residence as of January 1, 2027.
· Submit their homestead exemption application by March 1, 2027.
Establishing Florida residency involves more than purchasing property. Domicile, occupancy, and individual tax circumstances should all be reviewed with qualified legal and tax advisors.
SECOND HOMES & INVESTMENT PROPERTIES
A Separate Benefit for Non-Homestead Owners
Amendment 3 also provides a potential benefit for owners of non-homestead properties, including second homes and investment properties.
Beginning in 2027, the annual cap on increases in assessed value for non-school property taxes will decline from 10% to 5%.
While these properties do not qualify for the homestead exemption, the lower assessment cap may provide greater predictability in future property tax obligations.
One important consideration: Assessed values generally reset following a change in ownership. Buyers should evaluate their anticipated property taxes based on the property’s reassessed value rather than the current owner’s tax bill.
MY PERSPECTIVE
What This Means for Palm Beach Real Estate Decisions
Florida’s tax environment has long been an important consideration for buyers relocating from higher-tax states. Amendment 3 adds another dimension to that analysis.
For those already evaluating a move, the combination of expanded homestead benefits and the December 31 residency provision makes it particularly worthwhile to review their plans before year-end.
That doesn’t mean rushing a real estate decision. Choosing the right property, community, and lifestyle remains essential. But understanding the financial implications of when and how you establish Florida residency is now an important part of that process.
For buyers considering Palm Beach County, the decision also involves understanding the distinctions among our coastal communities, condominium and single-family ownership, and the long-term costs associated with each.
The right strategy considers both the property you purchase and the broader financial implications of making Florida your home.
LET’S CONNECT
Considering a Move to Palm Beach County?
Whether you’re considering a move to Palm Beach County or advising someone who is, I’m always happy to share local market perspective, help evaluate real estate options, and serve as a resource throughout the process.
