Florida lawmakers are considering a major property tax reduction for primary residences. Here’s how it could impact your home value and long-term plans..

Could your Florida property taxes drop by 60% in the near future? There is some exciting information circulating in the Florida real estate market right now. It is more than just noise, but it is not quite a done deal yet. 

A significant proposal to change real estate taxes is currently moving through the legislative "queue." It has already passed in the House and is now heading to the Senate.

What this means for your home. The core of this proposal is the potential elimination of a large portion of real estate taxes on homes that are "homesteaded" in Florida. To qualify for a homestead exemption, you must declare the property as your primary residence. If this passes, the tax reduction could be as much as 60% for some homeowners.

“The tax reduction could be as much as 60% for some homeowners.”

While most people would jump at the chance to keep that much money in their pockets, there are a few things to keep in mind:

● The 2026 vote: This must pass a public vote in 2026 to become official.

● Primary residences only: This tax break would not apply to second homes or investment properties. If you own a rental or a vacation spot, your taxes would remain in full effect.

● Market impact: Florida is known for being business-friendly and having no state income tax. This new move would further support that reputation, but it will likely impact property values.

Whenever we see interest rates drop or new opportunities like tax reductions appear, housing prices usually start to climb. If it becomes much cheaper to own a primary home here, demand will likely increase.

We probably have until the end of the year to see exactly how this moves through the Senate, so it is something you need to watch closely. 

Even if you currently own an investment property or a second home, you should consider how this might impact the future value of that asset. If that second home eventually becomes someone’s primary residence, its value could shift significantly. Florida is clearly working to remain a welcoming place for your wallet. 

Changes like this can create opportunity if you’re prepared. If you’d like to discuss how this could impact your home or future plans, call us at (561) 843-4464 or email dankarp@kw.com or laurie@activeluxury.com. Let’s make sure you’re positioned wisely.