Florida Frees Residents From Real Estate Taxes
By: Cheri F Rosen
As Florida voters cast their ballots this November, they will decide if the residents of this amazing state will be even freer than ever before! It is rather common knowledge that Florida residents have no state income tax. Now, thanks to the efforts of our incredible governor, Ron DeSantis, a major constitutional amendment will appear on the November ballot proposing that Florida residents should no longer be obligated to pay residential real estate taxes as well.
Through the new Save Our Homes (SOH) initiative, property taxes will be remarkably reduced for all residents as of 2027 with more than 60% of Florida homeowners having their property taxes totally eliminated by the following year. Currently, Florida residents are entitled to a $50,000 yearly homestead exemption on the assessed value of their homes. If the SOH proposal receives at least a 60% positive endorsement from the electorate, that exemption will be increased to $150,000 in 2027 and $250,000 in 2028. Since Florida taxes are paid in arrears, the majority of Florida residents will be free of all real estate tax obligations within two years with an eye on increasing the allotted exemptions over the subsequent years to allow for even more residents to be tax-free.
Property tax revenue is collected by local governments within the state to ensure funding for core services such as public safety, education, and local services. During the past seven years, the funds collected from real estate taxes have nearly doubled from $32 billion to more than $60 billion, with the expectation of $83 billion more in the coffers by 2030. Additionally, the SOH act will limit property tax increases to 5% annually regardless of any future home assessment.
Since its preliminary approval in the State Legislature on June 2nd, many current and future buyers are determined to finish their transactions in order to establish Florida residency before the end of the year. It is essential to understand that any purchase completed after December 31, 2026 coupled with obtaining Florida residency, must wait a minimum of five years before they can enjoy the benefits from the new tax legislation.
The Florida Residency Requirements are actually easy to procure. Qualifying homebuyers merely need two proofs of residency, such as: Florida vehicle registration, a Florida Driver’s License, Florida voter registration, a utility bill mailed to your Florida address, or a bank statement mailed likewise. Also, it is essential that the new residents have no resident-based exemptions in any other state. Finally, you must be a United States citizen or a green card holder or have minor children who were born in this country and will be residing with you.
So, if you are planning to relocate to Florida in the not-too-distant future, it would behoove you to make that move sooner rather than later. The financial benefits over the next decade will substantially compensate for a lack of procrastination.
Cheri F. Rosen, of Lang Realty, has been a realtor in South Florida since moving to Boca Raton over a decade ago. You can learn more about real estate in South Florida by calling Cheri at 561-221-2233 or visiting SouthFloridaCondosAndHouses.com or just Google the words Orthodox Boca. Cheri’s website is the top search result. Submit your personal questions and concerns to Cheri, and they will be answered personally or anonymously in future columns.
