Home  ›  Moving to Florida: The 5-Year Property Tax Rule
For Relocating Buyers · Updated June 2026

Moving to Florida? There's a 5-Year Catch in the New Property Tax Amendment.

Florida's proposed $250,000 homestead exemption is making national headlines — and it's already changing the math for families relocating from New York, New Jersey, California, and other high-tax states. But the full benefit isn't immediate for newcomers. Here's what the 5-year residency rule actually says, and what it means for your move to Central Florida.

Plan Your Florida Move → Call (407) 544-4704
Kelly Nadeau · Broker Associate · NMLS #1027618 Ray Nadeau · Broker Associate · NMLS #1027617 Lake Mary, FL · Relocation Specialists, Seminole County
The Fine Print That Matters

The headline says $250,000. The fine print says: not right away for newcomers.

On June 2, 2026, the Florida Legislature placed a constitutional amendment (HJR 1-F) on the November ballot. If approved by 60% of voters, the homestead exemption for non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028.

But buried in the amendment is a provision aimed squarely at people like you — buyers moving in from out of state:

The 5-Year Residency Rule

First-time Florida homeowners buying after January 1, 2027 would generally need to establish five years of residency before qualifying for the expanded exemption. Until then, they receive today's exemption levels — up to $50,000 — not the new $250,000.

Status check: The amendment is pending voter approval in November 2026 and is not yet law. Implementing legislation may refine how the residency requirement works. This page is updated as details develop.
The Good News

What relocating buyers still get from day one

The 5-year rule delays one benefit. It doesn't erase Florida's existing advantages — most of which start the moment you make Florida home.

Day One0%

Florida has no state income tax and no estate tax. For many relocating households, this alone outweighs the delayed exemption.

Day One$50K

Newcomers who homestead still receive the current exemption — up to $25K off all property taxes plus up to $25K off non-school taxes.

Day One3% Cap

The Save Our Homes cap limits annual assessed-value increases on your homestead to 3% — and it starts compounding the day you homestead.

Here's the part most relocation articles miss: the clock matters. The Save Our Homes cap rewards early homesteaders more every year you own. And depending on how the final implementing legislation defines the residency timeline, establishing Florida residency sooner rather than later may put you in a stronger position. That's a conversation to have with a qualified tax professional — and a reason not to sit on the sidelines waiting for November.

Where Do You Fit?

The 5-year rule, by relocation scenario

Your SituationWhat It Could Mean for You
Moving in 2026
Buying & homesteading this year
You'd be homesteaded before the January 1, 2027 line. How the rule treats pre-2027 homesteaders versus later buyers will be set by implementing legislation — but earlier homesteading also starts your Save Our Homes cap now.
Moving in 2027+
First Florida home after Jan 1, 2027
Plan on current exemption levels (up to $50K) for your first years, with the expanded exemption generally arriving after five years of residency — if voters approve the amendment.
Snowbird first
Second home now, primary later
Second homes don't qualify for homestead at all — but the amendment would cut the non-homestead assessment cap from 10% to 5%, a real long-term benefit while you decide.
Already a Floridian
Renting in FL, buying soon
Your residency history may matter under the final rules. Keep records of when your Florida residency began and review them with a tax professional before you buy.
Illustration only — not tax or legal advice. Eligibility details depend on the November 2026 vote and final implementing legislation. Consult a qualified tax professional about your specific timeline.
The Bigger Picture

Is the move still worth it? For most of our relocating clients — the math never hinged on this.

Families don't move from Westchester or Orange County, CA to Lake Mary because of one exemption. They move for the full picture.

No state income tax. No estate tax. Housing that costs a fraction of the Northeast and coastal California. Year-round golf, top-rated Seminole County schools, and a 25-minute drive to Orlando International. The proposed amendment — even delayed five years for newcomers — is a bonus on top of a case that was already strong.

And if it passes, you'll want to be positioned for it: homesteaded, residency documented, clock running.

We do this every week.

Kelly and Ray Nadeau help relocating families buy in Lake Mary, Heathrow, and across Seminole County — and coordinate financing through their mortgage side, so your timing, residency, and pre-approval move together. Start with our New York relocation guide or the California guide, or just call (407) 544-4704.

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Kelly & Ray Nadeau · Equity Smart Home Loans · NMLS #856170

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Questions From Relocating Buyers

The 5-Year Rule — FAQ

Under the proposed amendment on the November 2026 ballot, first-time Florida homeowners buying after January 1, 2027 would generally need five years of residency before qualifying for the expanded homestead exemption of up to $250,000. Until then, they'd receive today's exemption levels. Final details may be refined by implementing legislation.

Yes — the current homestead exemption (up to $50,000 total) plus the Save Our Homes 3% assessment cap, both starting when you homestead. And Florida's no-income-tax advantage applies from the day you become a resident.

Yes. The 3% annual cap on assessed-value increases begins once you establish your homestead, regardless of the 5-year rule. The earlier you homestead, the more that protection compounds.

It depends — and the amendment still has to pass in November. Buying and homesteading earlier may affect how the residency timeline applies to you, and it starts your Save Our Homes clock now. Review timing with a qualified tax professional, and talk to us about what the local market looks like for your budget.

Second homes never qualify for homestead. But the amendment would lower the assessment-increase cap on non-homestead property from 10% to 5% — meaningful protection for snowbirds and investors if it passes.

For many relocating households, yes. No state income tax, no estate tax, and existing homestead protections apply to newcomers from day one of homesteading. The 5-year rule delays one new benefit — it doesn't remove the advantages people move here for. Confirm your full picture with a tax professional.

Talk To Us

Planning a move to Central Florida?

Tell us where you're moving from and your timeline — Kelly or Ray will follow up personally with neighborhoods, numbers, and next steps. No pressure, no obligation.

Prefer to talk now? Call (407) 544-4704

Your move deserves a local team — not a call center.

Kelly & Ray Nadeau · Lake Mary's hometown broker team

Call (407) 544-4704
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