Florida has long been one of the most tax-friendly states for retirees, and a proposed constitutional amendment on the November 2026 ballot could make the state even more appealing. While the amendment has not yet been approved, it includes a provision that may influence when 55+ buyers choose to purchase a home and establish Florida residency.
For anyone planning a retirement move to a 55+ community in Central Florida, understanding the potential timing matters.
What the Proposed Amendment Would Change
Here’s a closer look at what the proposal includes and why the timing matters. If approved by voters, the amendment would increase the homestead exemption for non‑school property taxes to:
- $150,000 in 2027
- $250,000 in 2028
The proposal includes a directive for the Legislature to develop a schedule for full elimination of homestead property taxes, but no specific future dollar figure or end-date is named in the bill itself.
This increased exemption could offer meaningful long‑term tax savings for Florida homeowners, especially retirees who rely on fixed or predictable income.
However, the proposal includes a residency requirement that could affect new Florida residents.
The Five‑Year Waiting Period for New Residents
Under the proposed amendment, homeowners who establish Florida permanent residency on or before December 31, 2026 would be eligible for the enhanced exemption as soon as it takes effect.
Those who move to Florida after that date would receive only a limited exemption for their first five years of residency.
This means two retirees living in similar homes within the same 55+ community could pay different property tax amounts simply based on when they became Florida residents.
Homestead Eligibility Still Applies
To qualify for the enhanced exemption—if the amendment is approved—homeowners must meet Florida’s existing homestead requirements. The property must be your permanent primary residence, and you must apply for and receive the homestead exemption for that home. Part‑time residents, second homes, and investment properties would not qualify. Only full‑time Florida residents with an approved homestead exemption would be eligible for the expanded benefit.
This is especially important for 55+ buyers who may be transitioning from part‑time to full‑time Florida residency.
Why This Matters for 55+ Buyers
Many retirees plan their move over several years, but if the amendment passes, waiting until 2027 or later could mean missing out on years of enhanced tax savings.
For 55+ buyers, the timing could influence:
- Monthly housing affordability
- Long‑term retirement budgeting
- Total cost of ownership in a 55+ community
- How far retirement income stretches
Delaying a move may also mean:
- Higher home prices in popular 55+ communities
- Increased competition from relocating retirees
- Fewer available homes in top‑rated active adult neighborhoods
- Potentially higher mortgage or insurance costs
Florida’s 55+ market is already competitive, and major tax policy changes often accelerate demand.
Who Is Most Affected by the Proposed Change?
This proposed change may be especially relevant for:
- Out‑of‑state retirees planning a move in 2026–2028
- Seasonal residents considering becoming full‑time Floridians
- Buyers comparing 55+ communities with different tax profiles
- Anyone relying on fixed or predictable retirement income
Benefits of Establishing Florida Residency Before 2027
For retirees already planning a move, purchasing a home and establishing residency before the end of 2026 may position them to receive the full benefit of any approved exemption increase.
They would also immediately enjoy Florida’s existing advantages:
- No state income tax
- Save Our Homes assessment caps
- Current homestead protections
- Lower overall tax burden for retirees
- Access to highly desirable 55+ communities
- Strong long‑term housing demand supporting property values
These factors play a major role in long‑term financial planning for many 55+ households.
Why Many 55+ Buyers Are Targeting 2026
Florida continues to attract retirees from across the country seeking:
- Warmer weather
- Resort‑style 55+ communities
- Lower taxes
- A more affordable cost of living
- Access to healthcare, recreation, and lifestyle amenities
If the amendment passes, 2026 could become a pivotal year for buyers who want to maximize potential tax benefits while securing a home in their preferred 55+ community.
What Critics Are Saying
While many retirees are watching this proposal closely, it’s also important to understand the concerns raised by analysts and local officials.
Critics have raised concerns about its potential impact on local and state budgets. Because the amendment would reduce property tax revenue, some analysts warn that policymakers might need to adjust millage rates, raise local fees, or even consider increases in sales taxes to offset the shortfall. Others question whether the expanded exemption could limit funding for essential services.
These concerns don’t mean the amendment will have negative effects, only that its long‑term impact will depend on how state and local governments implement it.
Key Takeaways
- The amendment is proposed, not approved.
- Establishing residency by Dec. 31, 2026 may offer greater tax benefits.
- Homestead eligibility rules still apply — only full‑time Florida residents qualify.
- New residents after 2026 may face a five‑year waiting period.
- Critics warn of possible millage, fee, or sales tax increases to offset revenue loss.
Is Now the Time to Explore Florida’s 55+ Communities?
No one can predict the 2027 housing market or whether the proposed amendment will be approved by voters on November 3. However, for retirees already considering a move to Florida, exploring options in 2026 may help them avoid a possible five‑year wait for enhanced homestead benefits.
If you’re planning a retirement move within the next few years, now may be the ideal time to:
- Compare 55+ communities
- Tour neighborhoods
- Evaluate tax implications
- Begin the residency process
- Secure a home before demand increases
If you’re considering a move to Florida, we’re here to help you understand how timing, taxes, and residency requirements may fit into your plans. Contact Us if you have questions or just want to talk through your situation.
📌 Important Note
This information is based on a proposed constitutional amendment that must be approved by Florida voters. The final language of the amendment and its implementation timeline may still change before the 2026 ballot. Buyers should consult a qualified tax professional or attorney for guidance on their specific situation and verify details through official state sources.
Article contributor Kalyn Wagonmaker, REALTOR® with Florida Plus Realty.
