Florida’s Proposed $250k Homestead Law

If you are currently planning a move to Florida specifically to our beautiful community here in The Villages there is a major development flying under the radar that could dramatically change your retirement budget.

This November, Florida voters will decide on a historic property tax relief measure: Amendment 3 (the "Save Our Homes from Excessive Property Taxes" amendment).

If passed by a 60% majority, it promises to slash property taxes for primary residents to historic lows. However, it also includes a massive "catch" for out-of-state buyers that draws a strict line in the sand on December 31, 2026.

Here is exactly what the proposed amendment says, how it benefits you, and why waiting until 2027 to buy could lock you out of massive savings for five full years.

The Big News: The $250,000 Super Homestead Exemption

Right now, Florida primary residents receive a standard $50,000 homestead exemption split across school and non-school property taxes.

If Amendment 3 passes, it will massively expand the exemption for all non-school local property taxes over the next two years:

• January 1, 2027: The non-school exemption jumps from the current rate to $150,000.
• January 1, 2028: The exemption rises to a whopping $250,000.
• 2029 and Beyond: The exemption will automatically tie to inflation so your tax relief grows as home values grow.

For many homeowners in the state, this change could reduce the non-school portion of their local property taxes all the way down to zero.

The Catch: The 5-Year New Resident "Penalty Box"

To protect the state's tax base and reward established Floridians, lawmakers added a strict phase-in rule for anyone moving to the state from out-of-state.

• If you establish Florida residency ON or BEFORE December 31, 2026: You are fully grandfathered in. You will receive the massive new $150,000 and $250,000 exemptions, along with long-time residents, as soon as they take effect.
• If you establish Florida residency ON or AFTER January 1, 2027, you will enter a 5-year phase-in period. You will only qualify for the standard, baseline $50,000 homestead exemption and will be entirely locked out of the new, expanded tax breaks until your fifth year of permanent Florida residency.

Good News for Snowbirds (Second-Home Buyers)

Not planning to make Florida your permanent, full-time residence? Amendment 3 actually has a massive perk for you, too.

Currently, non-homestead properties (such as rental homes, commercial real estate, or seasonal vacation homes) have their annual assessed value increases capped at 10%. Amendment 3 proposes cutting that annual cap in half—down to just 5% per year. This offers incredible, predictable protection against skyrocketing taxes for part-time residents.

What Buyers Need to Do Right Now

This amendment introduces a powerful element of urgency into the market. If you are sitting on the fence about moving to The Villages, timing your purchase correctly could save you thousands of dollars over the next few years.

To beat the clock and qualify for the immediate tax breaks, you must do more than just sign closing papers. By December 31, 2026, you must officially establish your Florida domicile. This means:

1. Closing on your primary Florida home.
2. Filing an official Declaration of Domicile with the county clerk.
3. Obtaining your Florida driver’s license and registering your vehicles in the state.

The Bottom Line

Whether you want to beat the year-end deadline or find the perfect home that fits your retirement budget, I am here to help you navigate every step of the way.

Have questions about buying a home in The Villages before the year ends? Let’s chat! Reach out today at 352-721-6111 or email me at floridawendymontroy@gmail.com.