Florida's "No Tax" on properties explained - Proposed House Bill 1F (2026F)

There has been lots of talk around Florida’s no tax on property proposal. Some individuals are for it, while others are not. What exactly is it? Below I will break down the current proposals based on the recently passed House Bill 1F (2026), which will be on the ballots for approval on the November 3rd, 2026 election.

“Save Our Homes from Excessive Property Taxes” (HJR 1F / CS/HJR 1F) is a legislatively referred constitutional amendment passed by the Florida Legislature during a special session on June 2, 2026. It will appear on the November 3, 2026, general election ballot and requires at least 60% voter approval to take effect on January 1, 2027.

The amendment makes targeted changes focused on homesteaded primary residences (owner-occupied) and includes protections for other properties and spending limits. It does not eliminate all property taxes immediately or affect school district levies. This is very similar to the language and verbiage used in the 2025 “No Tax on Social Security”, which wasn’t really a “no tax on Social Security”, but rather an increase in Standard Deductions for Seniors.

• Increased Homestead Exemption (Non-School Taxes Only):

  • 2027: Exemption rises from the current ~$50,000 to $150,000 of assessed value for county, city, and most special district taxes.

  • 2028 onward: Exemption rises to $250,000, then adjusted annually for inflation (using CPI) starting in 2029.

  • The existing ~$25,000–$26,000 exemption that applies to school taxes remains unchanged.

  • Result: Many lower- and mid-value homesteaded homes could see their non-school property taxes reduced dramatically or eliminated entirely, depending on local millage rates and home value. Higher-value homes still pay on the portion above the exemption.

  • This does not eliminate taxes. This is similar to a increase in deductions on your Federal Tax Return. Essentially your homes “assessed value” will decrease due to the increase in homestead exemption. Example:

    • House has a assessed value currently at $500,000 and a $50,000 homestead exemption, taxable value of home: $450,000.

    • Under proposed bill, house has a assessed value at $500,000 and a new homestead of $150,000, taxable value of $350,000. The taxes (millage rate for counties) is now based on the $350,000 instead of the $450,000, directly lowering the taxes paid.

• Path to Further/Future Elimination:

  • The amendment requires the Legislature to establish (by general law) a procedure allowing counties, municipalities, and certain special districts to increase the exemption further, potentially up to 100% of the homestead’s assessed value for non-school taxes. This sets a framework for phased full relief over time, but additional action by lawmakers and/or local governments would be needed.

• Residency Requirement for Newcomers:

  • People establishing Florida residency on or after January 1, 2027, initially receive only the prior-level exemption (~$50,000 on non-school taxes) for their first five years as Florida residents.

  • After five years, they qualify for the full enhanced exemption. Local governments may shorten this waiting period after 2030 for critical needs.

• Tighter Assessment Cap on Non-Homestead Properties:

  • Reduces the annual cap on assessed value increases for non-homestead real property (rentals, second homes, commercial, industrial, multifamily, etc.) from 10% to 5% per year (for non-school levies), starting 2027. This provides some protection against rapid tax hikes on investment and business properties.

    • This would assist investment properties in excessive property tax increases. Currently, there is no homestead exemption, caps, or laws capping how aggressively a investment properties assessed value can increase. In many cases, investors miss this calculation in their evaluation of the property and it later hurts their cash flow and overall ROI.

• Spending Restrictions on Local Property Tax Revenue:

  • Counties and municipalities must use ad valorem (property) tax revenue only for specified “core” purposes, such as:

    • Public safety (police, fire, EMS)

    • Education/schools

    • Infrastructure (roads, bridges, stormwater)

    • Natural resources, flood control

    • Debt service/bonds

    • Pensions/retirement benefits

    • Core governmental administration and operations

  • This aims to prioritize essential services but could limit spending on parks, recreation, economic development, or other programs.

This builds on Florida’s existing “Save Our Homes” 3% assessment cap and homestead protections but represents a much larger shift.