Florida's Homestead Proposal: Why Timing Matters for Out-of-State Buyers

Thinking about making Florida your primary home? Waiting may cost you more than you realize.

Florida’s proposed homestead exemption increase is big news for homeowners. Increasing the exemption from up to $50,000 today to as much as $250,000 by 2028 could make a real difference for qualifying homeowners. But for out-of-state buyers, there is one important detail that may be easy to miss: the proposed waiting period.

What Is the Florida Homestead Proposal?

The proposal, called Save Our Homes from Excessive Property Taxes, would increase Florida's homestead exemption for non-school property taxes.

Right now, the exemption is up to $50,000. If voters approve the proposal, it would increase to up to $150,000 in 2027 and up to $250,000 in 2028.

Here's what that means in plain English: a larger homestead exemption means a larger portion of a primary Florida home's value may be excluded from certain property taxes. For homeowners who qualify, that can reduce annual ownership costs.

Why Timing Matters

This is the part I want out-of-state buyers to really understand.

Under the proposal, anyone who establishes Florida residency after January 1, 2027, would not immediately receive the full expanded homestead exemption. Instead, they would begin with the current exemption and receive the additional benefit after maintaining Florida residency for five years.

That means two buyers purchasing similar homes may have very different tax outcomes depending on when they establish Florida residency.

This is why it is so important to talk through your plan before you buy. Homestead, residency, ownership structure, filing deadlines, insurance, and long-term costs all work together. When you understand the full picture early, you can make a much stronger decision.

What Should Buyers Do Next?

The proposal is not law yet. Florida voters still need to approve it in November 2026, and final details may change.

Still, this is a conversation worth having now if Florida is already on your radar. You do not need to be ready to buy tomorrow. Sometimes the smartest move is simply understanding your options before the timing matters.

If you are thinking about buying in Palm Beach County or making Florida your primary home, reach out today. Let's talk through your timeline and how you can position yourself to take full advantage of Florida's proposed homestead tax benefits.