1. The Core Changes: Primary Homestead vs. Non-Homestead Properties

• Homestead Properties (Primary Residences):
  
  
  • Massive Exemption Boost: The non-school property tax exemption for primary residences would jump from $50,000 to $150,000 in 2027 and $250,000 in 2028.
  • What It Eliminates: For roughly 60% of primary homeowners in Florida, this expansion would completely eliminate the county, city, and special district portions of their tax bill.
  • The Fine Print (School Taxes): School district levies—which typically make up 30%–40% of a total property tax bill—are excluded from this expanded exemption. The original $25,000 exemption for school taxes will remain unchanged.
• Non-Homestead Properties (Second Homes, Rentals, Investment Properties):
  
  
  • Tighter Assessment Caps: Non-homestead properties do not get the expanded dollar-amount exemptions. However, the proposal drops the annual assessment increase cap for non-school taxes from 10% down to 5%.
  • This provides long-term valuation predictability for landlords and second-home owners, even if their initial taxable base remains higher.

2. Florida Residents vs. Out-of-State Buyers

Key Takeaway for Out-of-State Buyers: Moving to Florida remains highly attractive due to zero state income tax, but relocated buyers (who estabish Florida residency after 12/31/26) should factor in a higher initial property tax footprint for their first five years before the full exemption kicks in.

3. Impact on Everyday Buyers and Sellers

• For Everyday Sellers: Lowering ongoing tax burdens makes primary home ownership significantly more affordable for the local buyer pool. Existing homeowners sitting on locked-in, low property tax rates will have less "tax lock-in" friction if they decide to buy another primary residence in Florida.
• For Everyday Buyers: Buyers acquiring modest primary homes ($250,000–$400,000 range) will see the largest relative reduction in monthly carrying costs once fully established. Lower monthly tax payments can effectively offset current mortgage interest rate pressures.

4. What It Means for Luxury & Ultra-Luxury Real Estate

• Luxury Primary Homebuyers ($1.5M - $5M):
  
  
  • While a $250,000 exemption is a smaller percentage of a luxury home's value, the total tax savings (often $1,500–$3,000+ annually depending on millage rates) remain welcome.
  • More importantly, for luxury primary buyers relocating within Florida, combining existing Save Our Homes (SOH) portability with expanded non-school exemptions preserves massive tax advantages.
• Ultra-Luxury Buyers & Multi-Home Investors ($5M+):
  
  
  • Many ultra-luxury buyers purchase Florida real estate as secondary or tertiary residences, meaning these properties fall under non-homestead rules.
  • For these buyers, the headline story is the 5% assessment cap (down from 10%) on non-school levies. On multi-million dollar holdings, capping annual assessed value growth at 5% provides significant long-term protection against sudden tax spikes during rapid market appreciation.

Summary Table: Impact Across Market Segments

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