For anyone buying a primary residence in Central Florida, the homestead exemption is one of the most valuable tax benefits available. It lowers the taxable value of your home and limits how quickly that value can rise. With voters approving a major expansion on November 3, 2026, it matters more than ever.
How the homestead exemption works today
Under the rules in place for 2026, a qualifying homeowner generally receives up to $50,000 in exemptions: the first $25,000 applies to all property taxes, including school taxes, and an additional amount applies to the assessed value between $50,000 and $75,000 for non-school taxes. That second portion is now adjusted for inflation.
The Save Our Homes cap
Once your home is homesteaded, increases in its assessed value are capped each year at 3% or the change in the Consumer Price Index, whichever is lower. Over time this can create a large gap between market value and taxable value. When you sell, you may be able to carry some of that benefit to your next Florida homestead through portability, which is applied for separately.
What Amendment 3 changes
On November 3, 2026, Florida voters approved Amendment 3 with about 62% of the vote, above the 60% required. According to Orange County’s summary of the amendment, it:
- Creates a larger homestead exemption for non-school property taxes: $150,000 in 2027 and $250,000 in 2028, adjusted for inflation.
- Requires new Florida residents to complete a five-year residency period before qualifying for the expanded exemption.
- Lowers the annual assessment cap on non-homestead property, such as second homes and rentals, from 10% to 5%.
- Directs the Legislature to plan for further reductions in non-school homestead taxes.
School taxes still apply. Local governments are adjusting budgets, and some observers expect the change to shift costs rather than simply cut them. Expect more detail as the Legislature passes implementing laws and property appraisers update their guidance.
This article is general information, not tax or legal advice. Amendment details, eligibility and timing may change with implementing legislation. Confirm your situation with the Orange County or Seminole County Property Appraiser and a tax professional.
What it means if you are buying
- A seller’s tax bill is not yours. Taxes are reassessed after a sale, so we estimate taxes at your purchase price and your own homestead status.
- If you are relocating from out of state, ask how the five-year residency rule affects when you qualify for the expanded exemption.
- Second-home and investment buyers do not receive homestead benefits, but the lower non-homestead cap may help limit future increases.
How to apply in Orange and Seminole Counties
Apply with the property appraiser in the county where the home is located: the Orange County Property Appraiser for Orlando, Winter Park, Windermere and Apopka, or the Seminole County Property Appraiser for Lake Mary, Longwood, Oviedo, Altamonte Springs and Sanford. Both offer online filing. You will typically need proof of ownership and Florida residency, such as a Florida driver license, vehicle registration and voter registration, and the deadline is March 1.
Portability: taking your savings with you
If you already have a Florida homestead and buy a new one, portability may let you transfer some or all of your Save Our Homes benefit, the difference between market value and assessed value, to the new home, up to a set limit. You generally must establish the new homestead within a few years of leaving the old one and apply separately. For long-time owners moving within Central Florida, portability can make a meaningful difference in the tax bill on the next home.
Common homestead mistakes
- Missing the March 1 deadline after a purchase in the prior year.
- Assuming the seller’s exemption carries over. It doesn’t; you must apply in your own name.
- Keeping a residency-based exemption or credit in another state while claiming a Florida homestead.
- Renting the home in a way that affects eligibility without checking the rules first.
- Forgetting to apply for portability when moving from one Florida homestead to another.
Your title company and closing documents will remind you, but it is worth putting the March 1 date on your calendar the day you close.
Planning a move? Our Moving to Orlando guide covers the first steps after you arrive, and our seller net sheet shows how prorated taxes appear at closing.