Florida homeowners to see higher property tax deductions starting January

Starting in January, Florida homeowners will benefit from increased non-school property tax deductions as part of Amendment 3, WFLA reported. The deduction will rise from $50,000 to $150,000 initially, then to $250,000 in 2028.

In Tampa's Hillsborough County, homeowners could see savings more than double those in Pinellas County, where the deduction increase translates to about $500 saved next year and nearly $1,000 by 2028. Tampa realtor Julie Lawrence noted the change will especially help first-time buyers and retirees on fixed incomes.

USF economics professor Michael Snipes highlighted that while the savings appear beneficial for homeowners, local governments may face significant revenue losses. The Tampa City Council chair anticipates a $40 million to $60 million shortfall when the amendment takes effect.

Snipes expressed concern that rural communities might experience layoffs in the public sector due to reduced tax income. Florida residency must be established by December 31 to qualify for the deduction immediately; new residents after that date must wait five years, according to WFLA.

The increased deduction is also expected to slightly reduce homeowners' escrow payments, providing additional financial relief, as explained by realtor Lawrence.