Florida Changes Property Tax and You Missed it

The Under the Radar Law That Could Hit Your 2026 Tax Bill

While everyone’s watching mortgage rates, Florida quietly passed Amendment 5, changing how your homestead exemption works.

And most people didn’t even notice.

It officially kicked in on January 1, 2025, but you’ll feel it when your 2026 property tax bill shows up.

If you own property, or plan to buy, in Pembroke Pines or anywhere in Florida you need to understand what’s changing.

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What Amendment 5 Actually Does

In simple terms:

Amendment 5 adjusts the 3% cap on property tax assessments based on inflation.

That means:

• The 3% limit on how much your assessed value can increase annually is now tied to inflation

• If inflation is 5%, your property value can go up 5%

• BUT your homestead exemption amount also increases with inflation

• This takes effect January 1, 2025 and impacts your 2026 tax bill

What Amendment 5 Could Look Like in Real Life

If Current Homesteaded Homeowner:

• 2024 Assessed Value: $450,000

• 2025 Assessment Cap (Old Rule): 3% → $463,500

• 2025 Cap (New Rule, 5% Inflation): $472,500

• Exemption Adjusted: from $50,000 → $52,500

• Taxable Value Difference: $9,000 more, but softened by exemption increase

If New Buyer in 2025

• Purchase Price: $550,000

• Assessed Value (Year 1): $550,000

• 2026 Assessment (5% Inflation): $577,500

• Exemption Grows Too: $52,500

• Bottom Line: Bigger exemption helps offset rising assessed values

Will You See A Surprise in Your 2026 Property Tax Bill?

If You Own Now:

• Maybe. You might see a slightly higher assessed value than you’re used to.

• But you’ll also get a larger exemption to soften the blow.

• Most people won’t be shocked by the number, but they will be confused when the 3% cap doesn’t hold.

If You’re Buying Soon:

• Nothing out of the ordinary in year one.

• But your future tax increases will follow inflation with exemptions rising too.

• This makes Florida ownership a little more stable in high inflation years.

• If you own a home, rent one out, or are thinking of buying in the next year, the Big Beautiful Bill might offer real financial benefits, especially here in Florida where no state income tax means property deductions go further.

Final Thought

Amendment 5 won’t break your budget, but it rewrites how property taxes will rise in Florida from here on out.

Whether you’re already homesteaded or buying your first home, expect your 2026 bill to look a little different and make more sense once you know this rule changed.

That said, not everyone’s cheering this move:

• Some critics say it could widen the tax gap between longtime owners and new buyers.

• Cities worry about shrinking tax revenues as exemptions grow especially during inflationary years.

• And because it passed with little fanfare, many homeowners still have no idea it’s coming.

So if your you or your neighbor is surprised when their 2026 tax bill looks off, you’ll know why.

Stay Safe,

Mike