Building a House in Texas: A Buyer's Guide
Does Florida Have Property Taxes?
Yes, Florida does have property taxes. While the Sunshine State is famous for having no state income tax, local governments rely on property taxes to fund essential services like public schools, local police, and neighborhood parks. Because Florida does not collect a state-level property tax, these local levies stay within your community to support the infrastructure and resources you use every day.
As we move through 2026, Florida’s tax landscape is shifting in a big way. Between new inflation-adjusted exemptions and historic legislative proposals currently on the table, it is a vital time for homeowners to understand the rules. Staying informed on these changes can help you plan your long-term budget and take full advantage of the protections the state offers to permanent residents.
To help you navigate your purchase this year, here are four key factors shaping Florida property tax in 2026.
1. The Inflation-Adjusted Homestead Exemption
The Homestead Exemption is the most common way to lower a property tax bill in Florida. For 2026, this benefit has become even more valuable thanks to the implementation of Amendment 5. While the exemption was previously a flat $50,000, it is now adjusted annually to keep up with inflation and the cost of living.
For the 2026 tax year, the Florida Department of Revenue has confirmed that the total exemption has increased to approximately $51,411. This adjustment ensures that a significant portion of your home’s value is shielded from taxes right from the start, helping to offset the rising costs of homeownership in popular coastal and metro areas.
2. The "Save Our Homes" 3% Assessment Cap
Florida offers a powerful protection called the Save Our Homes (SOH) cap. Once you have successfully filed for a homestead exemption, the assessed value of your property cannot increase more than 3% per year, or the rate of inflation—whichever is lower. This cap is designed to protect residents from being priced out of their homes by rapidly rising market values.
This cap is a major benefit for anyone planning to own their home for the long term. If you are moving from one Florida home to another, you can often "port" or transfer this tax savings to your new property. You can find more details on how to move your tax benefit in the official Save Our Homes Portability Guide.
3. Portability: Moving Your Tax Savings
One of the most valuable features of the Florida tax code is the ability to "port" or transfer your Save Our Homes tax savings. If you are moving from a previous Florida residence to a new one, you can take your accumulated tax benefits with you. This process, known as Portability, allows you to transfer up to $500,000 of your tax assessment difference to your new home, which can drastically lower your initial tax bill.
According to the Florida Department of Revenue, you have up to three years from the end of the calendar year in which you abandoned your previous homestead to apply for this transfer. This makes 2026 an ideal time for current Florida residents to upgrade or downsize, as they can maintain the low tax basis they have built up over years of homeownership in the state.
4. 2026 Tax Reform: The Non-School Tax Phase-Out (HJR 203)
The biggest news in Florida property tax this year is a significant legislative effort known as House Joint Resolution 203. As of February 2026, the Florida House has advanced a proposal to eventually eliminate all non-school property taxes for homesteaded properties. This would be a massive shift in how the state is funded.
This proposal aims to phase out these taxes over several years, potentially saving the average homeowner thousands of dollars annually. While the final outcome depends on the upcoming November 2026 elections, the Florida Senate's bill tracking shows this is the most aggressive tax relief measure in decades. It is a major topic of discussion for anyone buying property in the state right now.
Is Florida a Good State for Property Taxes?
When looking at the total financial picture, Florida remains an excellent choice for homebuyers. Even though property taxes are a reality, the combination of no state income tax, the 3% assessment cap, and the new inflation-adjusted exemptions makes the state highly competitive. By staying on top of the March 2nd deadline and understanding how local rates are applied, you can enjoy the many benefits of the Sunshine State with total financial clarity.
By leveraging portability, many residents are able to upgrade to a new home while maintaining their hard-earned tax savings. You can view our communities in Florida to see how these unique benefits apply to our latest coastal and inland projects.
Recommended Stories
M/I Homes is Proud to Celebrate Women in Construction Week®
