Florida Property Tax Reform Takes a Major Step Forward: What Homeowners Need to Know

Property taxes have become one of the most discussed issues among Florida homeowners in recent years. Rising home values, increasing insurance costs, and overall affordability concerns have put growing pressure on household budgets across the state.

Now, one of the most significant property tax reform proposals in recent Florida history is moving forward.

During a recent Special Session, the Florida Legislature approved a proposed constitutional amendment that would substantially expand Florida's Homestead Exemption and provide additional tax relief for certain non-homestead properties. The proposal will now go before Florida voters during the November 2026 General Election.

For homeowners in St. Augustine, St. Johns County, and throughout Florida, here's what you need to know.

What Is Changing?

If approved by voters, the proposal would significantly increase Florida's Homestead Exemption over the next several years.

Proposed Homestead Exemption Increases

Current exemption:

• $50,000 Homestead Exemption

Proposed changes:

• Increase to $150,000 in 2027
• Increase to $250,000 in 2028

For many Florida homeowners, this could result in meaningful property tax savings by reducing the taxable value of their primary residence.

Relief for Second Homes and Investment Properties

The proposal doesn't only impact primary residences. Lawmakers also included provisions that would reduce the annual cap on assessed value increases for many non-homestead properties, including:

• Second homes
• Vacation homes
• Investment properties
• Rental properties

Under the current system, many non-homestead properties can see assessment increases of up to 10% annually. The proposal would reduce that cap to 5% per year, helping slow the growth of future property tax bills.

This could be particularly important for property owners in areas like St. Augustine Beach, Crescent Beach, Vilano Beach, and other communities where property values have risen significantly over the past several years.

Why Supporters Favor the Proposal

Supporters argue that Florida homeowners have experienced substantial increases in housing-related expenses.

While many homeowners have benefited from rising property values, they've also faced:

• Higher property tax bills
• Increased homeowners insurance premiums
• Rising maintenance and construction costs
• Higher overall housing expenses

Advocates believe the proposal would provide meaningful tax relief while helping improve long-term housing affordability throughout Florida.

For homeowners on fixed incomes, retirees, and longtime residents, supporters view the measure as an opportunity to help offset some of the financial pressure created by rising housing costs.

Concerns Raised by Opponents

Not everyone supports the proposal. Many local government officials and municipal leaders have expressed concerns about the potential impact on public revenues.

Their primary concern is straightforward: reducing taxable property values could reduce property tax collections that help fund local services.

Critics argue that local governments may eventually need to:

• Delay infrastructure projects
• Reduce certain public services
• Increase user fees
• Find alternative revenue sources
• Adjust local budgets

As the proposal moves toward the ballot, the debate will likely focus on balancing homeowner tax relief with the funding needs of local communities.

What About School Funding?

One of the major discussion points during the Special Session involved school funding.

Lawmakers ultimately modified the proposal after concerns were raised about potential impacts on education funding. The revised version includes changes designed to help protect funding for Florida's public schools while still delivering tax relief to property owners.

What Happens Next?

The proposal is not law yet. The next step is the November 2026 General Election, where Florida voters will have the final say.

Because this is a constitutional amendment, it must receive approval from at least 60% of Florida voters to become part of the Florida Constitution.

Until then, Florida's current property tax system remains unchanged.

What This Means for St. Augustine and St. Johns County Homeowners

For homeowners in St. Augustine, St. Johns County, and throughout Northeast Florida, this is one of the most important property tax issues to watch over the next year.

If approved, the measure could:

• Lower taxable values for many homesteaded properties
• Reduce future property tax growth
• Provide relief for some second-home and investment-property owners
• Influence long-term housing affordability throughout Florida

At the same time, the proposal could affect how local governments fund future infrastructure, public services, and community improvements.

Whether you're a longtime Florida resident or considering a move to St. Augustine, understanding these potential changes will be an important part of planning your future housing and investment decisions.