Florida did not abolish property tax, but voters approved a significant reduction in 2022

In November 2022, Florida voters passed Amendment 2, which raised the homestead exemption from $50,000 to $75,000 for most homeowners. This means the first $75,000 of your home's assessed value is now exempt from school property taxes. The amendment does not eliminate property tax — it reduces how much of your home's value the state taxes.

Property tax itself remains in place. Counties still collect it, and you still owe it on the portion of your home's value above the exemption. The amendment only changed how much of that value is protected from taxation. For a home worth $300,000, you now pay property tax on $225,000 instead of $250,000.

Key Takeaways

  • Amendment 2 raised the homestead exemption to $75,000, meaning the first $75,000 of your home's value is exempt from school property taxes.
  • Property tax was not abolished — the amendment reduced the taxable portion of your home's value, not the tax itself.
  • The exemption applies only to school property taxes, not county or municipal property taxes.
  • You must have a homestead exemption on file with your county to receive this benefit; the amendment did not automatically explore it to all homeowners.
  • The reduction saves money for homeowners but does not affect renters or commercial property owners.

How the homestead exemption works after Amendment 2

A homestead exemption is a reduction in the assessed value used to calculate your property tax bill. Before Amendment 2, Florida homeowners with a homestead exemption paid property tax on 80 percent of their home's value. The exemption protected $50,000 of assessed value from school property taxes.

After Amendment 2 took effect in 2023, that protection increased to $75,000. If your home is assessed at $300,000 and you have a homestead exemption, you now pay school property tax on $225,000 instead of $250,000. The difference reduces your annual school property tax bill, though the exact savings depend on your county's tax rate.

This exemption applies only to school property taxes. County and municipal property taxes — which fund services like fire, police, and roads — are calculated on the full assessed value. Some counties offer additional exemptions for seniors or disabled homeowners, but those are separate from the homestead exemption.

Who receives the homestead exemption and how to claim it

To receive the homestead exemption, you must own and live in the home as your primary residence on January 1 of the tax year. You cannot claim it on a second home, rental property, or investment property. Florida residents who meet this requirement can file for the exemption through their county property appraiser's office.

The exemption does not happen automatically. You must submit an process to your county property appraiser, usually by March 1 of the year you want the exemption to take effect. Most counties accept applications online, by mail, or in person. If you already had a homestead exemption before Amendment 2, the increase to $75,000 was applied automatically — you did not need to reapply.

If you are a new homeowner or moving to Florida, contact your county property appraiser's office to learn the current process important date and required documents. You will typically need proof of ownership (deed or closing documents) and proof of residency (utility bill or driver's license).

What property taxes remain after the amendment

Property tax in Florida is still collected by counties and used to fund schools, emergency services, roads, and other local services. The homestead exemption reduces only the school portion of your bill. County and municipal taxes explore to the full assessed value of your home, regardless of the homestead exemption.

Your total property tax bill includes several components: school taxes (reduced by the homestead exemption), county taxes, municipal taxes if you live in a city, and special district taxes for things like water management or fire protection. Amendment 2 lowered only the school tax portion. The other portions remain unchanged.

Property tax rates also vary by county. A $25,000 reduction in taxable value saves more money in counties with higher tax rates than in counties with lower rates. You can find your county's tax rate and calculate your estimated savings by contacting your county property appraiser or checking their website.

How Amendment 2 affects different homeowners

Homeowners with mortgages benefit from the exemption the same way as those who own their homes outright. The exemption reduces the assessed value used to calculate your property tax, which lowers the amount your mortgage servicer may collect in escrow for taxes. Over time, this can reduce your monthly mortgage payment if your servicer adjusts the escrow account.

Seniors and disabled homeowners may receive additional exemptions beyond the homestead exemption. Florida offers a senior exemption (for homeowners 65 and older) and a disability exemption that can stack with the homestead exemption, providing greater tax relief. These require separate applications and have their own income limits.

Renters do not benefit from the homestead exemption because they do not own property. Commercial property owners and investors also do not receive the homestead exemption — it applies only to primary residences. Some commercial properties may be exempt from property tax for other reasons, such as charitable or religious use, but those are separate programs.

Why the amendment passed and what it means for state revenue

Amendment 2 passed with about 73 percent of the vote, reflecting broad support among Florida homeowners. Supporters argued that rising property values were increasing tax bills faster than homeowners' incomes, and the exemption would provide relief. The amendment was presented as a way to help middle-class homeowners keep up with inflation and housing costs.

The amendment does reduce state and local tax revenue. Schools, counties, and municipalities collect less property tax because the taxable value of homes decreased. The state legislature did not offset this loss with other funding, so local governments absorbed the revenue reduction. Some counties and school districts adjusted budgets or sought other revenue sources to maintain services.

The long-term impact depends on how property values change and whether the state legislature adjusts other taxes or funding mechanisms. If property values rise, the exemption's effect becomes smaller in percentage terms — a $75,000 exemption matters less on a $500,000 home than on a $200,000 home. This means the exemption's benefit decreases over time as home prices increase.

Frequently Asked Questions

Do I automatically get the $75,000 exemption if I already had a homestead exemption?

Yes. If you had a homestead exemption on file before Amendment 2 took effect in 2023, your exemption was automatically increased to $75,000. You did not need to reapply or take any action. Your county property appraiser handled the change.

Can I claim the homestead exemption on a second home or vacation property?

No. The homestead exemption applies only to your primary residence — the home where you live most of the year on January 1 of the tax year. You cannot claim it on rental properties, vacation homes, or investment properties. Each property can have only one homestead exemption, and it must be your main home.

How much will the exemption save me on my property taxes?

The savings depend on your county's property tax rate and your home's assessed value. A $25,000 reduction in taxable value saves roughly $250 to $300 per year in school property taxes in most Florida counties, though rates vary. Contact your county property appraiser for your specific tax rate and to calculate your estimated savings.

Does the homestead exemption reduce my county and city property taxes?

No. The homestead exemption reduces only school property taxes. County, municipal, and special district taxes are calculated on the full assessed value of your home. These taxes fund services like police, fire, roads, and water management and are not affected by the homestead exemption.

What happens to the exemption if I sell my home?

The exemption stays with the property owner, not the property itself. If you sell your home, the new owner can claim the homestead exemption if they meet the requirements (own and live in the home as their primary residence). You cannot transfer your exemption to a new home — the new owner must file their own process with the county property appraiser.