The Mastropieri Group, a luxury real estate brokerage serving Palm Beach and Broward Counties, has been fielding questions from buyers weighing whether to move up their purchase timelines before a critical deadline tied to Florida's proposed property tax exemption increase. The measure, passed by the Florida Legislature on June 2, 2026, as HJR 1F, will appear on the November 2026 ballot and requires 60% voter approval to take effect.
Under the current homestead exemption of $50,000, the new plan would raise it to $150,000 in 2027 and $250,000 in 2028. At $250,000, approximately 60% of Florida homesteaded homeowners would pay zero property taxes on the non-school portion of their bill, though school district levies still apply. The projected revenue impact to local governments exceeds $8.4 billion per year statewide.
The key detail for buyers is a residency provision buried in the proposal: anyone who purchases a home and makes it their primary residence after January 1, 2027, may have to wait up to five years before qualifying for the full exemption. This applies to first-time buyers, people relocating to Florida, and current Florida homeowners who sell and buy a new primary residence. Larry Mastropieri highlighted this on the Discover South Florida Podcast, noting that if the measure passes, buyers who close before the end of 2026 can take advantage of the new exemption immediately, while those who wait will face a five-year phase-in.
For buyers already planning a Florida purchase in the next 12 months, this creates a concrete reason to move their timeline forward. Those earlier in their decision process face a trade-off: act before the vote on the assumption it passes, or wait for certainty and risk losing immediate eligibility. The vote happens in November 2026, leaving a narrow window to close before the January 1, 2027 deadline if the result is favorable.
The exemption applies only to homesteaded primary residences. Investment properties, second homes, and rentals do not qualify and may face a higher tax burden as homesteaded properties are removed from the tax roll. Florida League of Cities president Holly Smith noted that when homesteaded properties come off the tax roll, the cost of municipal services redistributes to businesses and non-homesteaded properties. For investors underwriting rental income in Florida, this redistribution is a risk worth factoring into long-term projections. For renters, landlords of non-homesteaded rental properties facing higher tax exposure could pass those costs through in the form of higher rents, an ironic result for a measure framed as affordability relief.
The constitutional amendment goes to voters in November 2026. If approved, the $150,000 exemption takes effect in 2027 and the $250,000 exemption in 2028. The five-year waiting period for new homesteads established after January 1, 2027 would also apply from that date. For buyers with a Florida purchase already under consideration, the timeline is now clear: closing on a primary residence before January 1, 2027 is the condition for immediate eligibility, assuming voters approve the measure.
The Mastropieri Group is a luxury real estate brokerage serving Palm Beach and Broward Counties, with over 2,000 closed transactions and 2,000+ five-star reviews. Learn more at discoversouthflorida.com.
