Florida's Homestead Exemption to Rise to $150,000 in 2027 Under DeSantis Save Our Homes Plan
Florida homeowners could see their property tax bills ease beginning in 2027 if the state follows through on a plan to raise the homestead exemption cap. The proposed increase represents one of the largest adjustments to the exemption in years and stands to benefit millions of residents across the state who rely on the tax break to keep housing costs manageable.
The homestead exemption protects a portion of a home's assessed value from taxation. Under the current system, Florida allows homeowners to exempt a set amount from their property's taxable value, reducing the tax burden. The plan under consideration would raise that exemption to $150,000, an increase designed to provide relief to homeowners as property values continue climbing across Florida's competitive real estate market.
How the exemption shields homeowners
The homestead exemption works by removing a portion of a home's value from the calculation that determines property taxes. A homeowner with a home assessed at $400,000, for example, would only pay taxes on the difference between the home's value and the exemption amount. By raising the exemption, the state effectively lowers the taxable portion of each homeowner's property, translating directly to reduced tax bills when local governments calculate what residents owe.
The exemption applies to primary residences owned by Florida residents. It is one of the state's most popular tax benefits and has been adjusted periodically to reflect inflation and economic conditions. The proposed increase to $150,000 would modernize the exemption to match current housing costs in much of the state.
Why timing matters for Florida residents
Property values across Florida have risen substantially in recent years, driven by migration into the state and limited housing supply in many markets. As assessed values climb, homeowners' tax bills rise along with them, even if their homes have not physically changed. The exemption, by increasing the amount protected from taxation, helps offset that effect.
Local governments rely on property tax revenue to fund schools, fire departments, infrastructure, and other services. When the state raises the homestead exemption, local tax bases shrink unless property values continue climbing. Officials at the local level will face choices about maintaining service levels and budgets as the exemption grows.
The Save Our Homes framework
The exemption increase is part of a broader initiative officials have framed as protecting homeownership in Florida. State policymakers said the measure aims to make homeownership more affordable and keep long-term residents in their communities as housing costs rise. The plan reflects ongoing legislative focus on property tax relief, a priority that has shaped state budget and tax policy in recent years.
The $150,000 figure would represent a meaningful increase from existing exemption levels. Homeowners who have lived in their homes for many years may see particularly significant savings, as they are more likely to have purchased at lower prices and face the largest gaps between their original purchase prices and current assessed values.
What comes next for homeowners
The plan is scheduled to take effect in 2027, giving the state time to assess its fiscal impact and prepare local governments for the change. The timeline also allows legislators to refine the proposal or adjust implementation details as needed.
Homeowners interested in the exemption should verify their current exemption status with their county property appraiser. The exemption is not automatic; eligible residents must apply, and rules vary by county regarding residency requirements and filing deadlines.
For Florida residents already enjoying the homestead exemption, the potential increase offers the prospect of lower property tax bills in the coming years. For those who have not yet applied, the expansion may provide additional motivation to complete the application process and lock in tax protection before the change takes effect.
