FL – Guidance issued on approval of constitutional amendment 5, annual inflation adjustment to homestead exemption value

Amendment 5 was approved by Florida voters in the November 5, 2024, general election for property tax purposes.

This amendment:

• changes section 6 of Article VII, and creates a new section in Article XII, of the Florida Constitution, to require an annual inflation adjustment to the value of current or future homestead exemptions for levies other than school district levies;

• takes effect January 1, 2025; and

• begins with the 2025 tax year assessment.

Legislation enacted this year requires that the value of the additional homestead exemption be adjusted annually based on the Consumer Price Index (CPI) as reported by the United States Department of Labor, Bureau of Labor Statistics. The $25,000 value of the additional exemption is increased when the inflation adjustment is positive and applied to the assessed value greater than $50,000. The adjusted value increase amount will be calculated and provided by the Florida Department of Revenue annually beginning in the 2025 tax year. Property Tax Oversight Informational Bulletin PTO 24-20, Florida Department of Revenue, November 14, 2024