Florida voters will decide this November whether to approve one of the largest property tax cuts in their state’s history, after lawmakers passed Gov. Ron DeSantis‘ proposal to expand the state’s homestead exemption. The plan promises relief for homeowners even as experts warn the savings may be harder to calculate.

The measure, titled Save Our Homes From Excessive Property Taxes, passed the House 75-26 and the Senate 30-9 during a special session. Under the plan, Florida’s current $50,000 homestead exemption would expand to $150,000 in 2027 and $250,000 in 2028.

DeSantis has said the expanded exemption would eliminate property taxes entirely for 60% of Florida homeowners, though independent analysis suggests the actual share is closer to 28%.

The potential savings are real. So is a projected $8 billion shortfall for local governments—and homeowners may be surprised to find out just how big of a bite that is. 

What the proposal actually does

The amendment would dramatically expand Florida’s homestead exemption, shielding more of a primary residence’s assessed value from most local property taxes. First-time homeowners would need to establish five years of Florida residency to qualify for the full new exemption, a requirement that takes effect after Jan. 1, 2027.

The bill, amended from DeSantis’ original proposal during the special session, also lowers the cap on annual assessment increases for nonhomestead properties—vacation homes, investment properties, and commercial real estate—from 10% to 5%, and limits how local governments can use property tax revenue, restricting it to core services like public safety, infrastructure, and stormwater management.

A House staff analysis estimated the proposal would reduce annual revenue to nonschool governments by $4.6 billion initially, growing to $8.4 billion per year—and a state trust fund originally designed to cushion that blow was stripped from the final version before passage.

The savings are real but variable

For current homeowners, the relief is genuine, if hard to quantify precisely. 

“We’re encouraged by the savings—that part is real—but it’s a range, not a fixed number,” says Christina Pappas, president of The Keyes Company, Florida’s largest independent real estate brokerage. “On homes over $250,000, our rough math points to a blended average around 1%, and even that’s speculative this early.”

How much relief any individual homeowner sees will depend on their assessed value, local tax rates, and individual circumstances. The insurance picture adds more complexity: Florida’s property insurance market has begun to stabilize, with many homeowners seeing premiums level off after years of dramatic increases. For some, that combination of tax relief and easing insurance costs could represent a meaningful shift. 

“If approved by voters, this proposal has the potential to provide meaningful property tax relief for many homeowners and first-time homebuyers,” says Danielle Blake, chief of residential and advocacy at MIAMI REALTORS®. “However, the actual benefit will depend on several factors, including how the Legislature ultimately implements the amendment.”

The service cut question—starting with mosquitoes

The revised bill protects school districts and constitutional officers, but special taxing districts—the layer of local government that funds everything from fire protection to mosquito control—will still be affected. And in Florida, that’s a major footnote.

In Lee County alone, the local Mosquito Control District could lose $6.2 million under the plan, according to Jennifer McBride, the district’s communications director, who testified before lawmakers in Tallahassee. She warned that the cuts could force the district to slow response times and scale back services—in a subtropical state where mosquito-borne illnesses like dengue fever and the West Nile virus are persistent public health concerns.

The Florida Mosquito Control Association also weighed in before the vote: The organization put out a statement noting that 37% to 45% of their revenues come directly from homesteaded properties. 

“For more than 100 years, mosquito control professionals have helped make modern Florida possible. It has often been said that without air conditioning and mosquito control, Florida would not have experienced the extraordinary growth and quality of life residents and visitors enjoy today,” wrote FMCA president Peter Jiang. 

In essence, a Florida without mosquito control may not be a very pleasant place to live.

“Local services matter because they directly impact quality of life and ultimately property values,” says Blake. “Buyers consider factors such as public safety, infrastructure, parks, drainage, and other community services when deciding where to live and how much they are willing to pay for a home.” 

What buyers and sellers should be thinking about now

Nothing takes effect until voters approve the amendment in November, and legal challenges are widely expected regardless of the outcome. The practical advice for buyers and sellers is to watch closely but not overreact. 

“It’s early, and the language around core services is still broad,” Pappas says. “What a home looks like on taxes today may not be what it looks like in a few years.”

There is, however, a market dynamic already worth watching. The amendment could tighten an already-constrained inventory. Homeowners with low interest rates have had little incentive to sell—and a meaningful property tax reduction gives them one more reason to stay put. Because Florida’s portability rules mean taxes reset after a sale, staying is almost always cheaper than moving, even to a similar home. If buyers simultaneously rush to establish Florida residency before the 2027 deadline, the resulting demand against limited supply could push prices up. 

“If you’re thinking about buying, it may pay to move soon—most of our markets are pretty balanced right now,” Pappas says. 

Florida remains an in-demand housing market, but the amendment is a reason to look at the full picture—property taxes, insurance costs, maintenance expenses, and overall quality of life—not just the number on the exemption line.