Florida Property Tax Cut: Buy Before 2027 or Wait 5 Years

Florida voters will decide in November 2026 whether to dramatically cut property taxes for homesteaded homeowners. The Mastropieri Group, a luxury real estate brokerage serving Palm Beach and Broward Counties, has been fielding questions from buyers weighing whether to move up their purchase timelines before the January 1, 2027 deadline. The proposal, passed by the Florida Legislature on June 2, 2026, as HJR 1F, aims to increase the homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028, potentially eliminating property taxes for 60% of homesteaded homeowners on the non-school portion. However, a critical residency provision means that anyone purchasing a home after January 1, 2027, may have to wait up to five years to qualify for the full exemption. This creates urgency for buyers to act before the vote, as noted by Larry Mastropieri on the Discover South Florida Podcast: "The big red alert is that if you buy a home after January 1, 2027, and make it your primary residence, you may have to wait five years before getting the new exemption."

The exemption applies only to homesteaded primary residences, not investment properties, second homes, or rentals. This could lead to higher tax burdens for non-homesteaded properties, as municipal costs redistribute. Florida League of Cities president Holly Smith highlighted that when homesteaded properties come off the tax roll, costs shift to businesses and non-homesteaded properties. For investors, this redistribution is a risk factor for long-term projections. Renters may also be affected, as landlords facing higher taxes could pass costs through as higher rents. The constitutional amendment requires 60% voter approval in November 2026, with the $150,000 exemption effective in 2027 and $250,000 in 2028. The Mastropieri Group, with over 2,000 closed transactions and 2,000+ five-star reviews, provides insights on navigating this timeline. For more information, visit discoversouthflorida.com.