Florida Property Tax Elimination: Will Canadian Snowbirds and Non-Residents Pay More?
Recent headlines about Florida potentially eliminating property taxes have caused considerable confusion, especially among Canadian snowbirds who own or are considering purchasing property in Florida.
Some of the coverage makes it sound as though Florida residents will stop paying property taxes while Canadians will somehow be left to make up the difference. That is not an accurate description of the proposal. Florida is not creating one property-tax system for Canadians and another for Americans. The real distinction is between Florida homestead property and non-homestead property. That means Canadians are not being singled out. Americans who live primarily in another state and own a Florida vacation home, second home or investment property can fall into the same non-homestead category. More importantly, there may also be a positive side to these changes for Canadian property owners that has received far less attention. If lower property taxes make Florida homeownership more attractive and affordable for permanent residents, stronger housing demand could potentially support Florida property values — meaning Canadians may still benefit as property owners even if they do not personally receive the full homestead exemption.
What Is Florida Actually Proposing?
In June 2026, the Florida Legislature passed CS/HJR 1-F, “Save Our Homes from Excessive Property Taxes.” The proposal would amend the Florida Constitution and significantly increase the property-tax exemption available to qualifying homesteaded properties. For qualifying owners who established Florida residency by the end of 2026, the proposal would increase the exemption from non-school property taxes to as much as: $150,000 of assessed value beginning January 1, 2027 and $250,000 beginning January 1, 2028.
The exemption would apply to property taxes other than school district taxes. The proposal also reduces the annual assessment increase limitation for non-homestead residential and non-residential property from 10% to 5%. That last point is especially important for Canadian snowbirds and other second-home owners because it provides additional protection against rapidly increasing assessed values even though their property may not qualify for homestead.
The Florida Senate’s official summary of the legislation can be reviewed here: Florida Senate — 2026 Special Session Property Tax Summary. The actual legislation and its status are available here: Florida Senate — CS/HJR 1-F: Save Our Homes from Excessive Property Taxes The Legislature passed the proposal on June 2, 2026, and it was subsequently filed with the Florida Secretary of State. However, because this is a proposed constitutional amendment, Florida voters must still approve it before these changes take effect.
Florida Is Not Eliminating Every Property Tax
This distinction matters. The phrase “Florida is eliminating property taxes” makes a much better headline than it does an explanation. The current proposal focuses primarily on increasing the exemption from non-school property taxes for qualifying homestead properties. School district property taxes would remain. Governor Ron DeSantis has described the broader objective as eventually eliminating property taxes on homesteaded properties, but the proposal currently before voters establishes the initial exemption increases and a framework for further changes. You can read the Governor’s description of the proposal here: Governor of Florida — Save Our Homes Property Tax Proposal
Are Canadians Being Singled Out?
No. This is probably the biggest misconception surrounding the issue. Imagine three people owning essentially identical condos in Naples.
Owner A: Lives primarily in Toronto and uses the Naples condo during the winter.
Owner B: Lives primarily in Michigan and uses the condo next door during the winter.
Owner C: Lives permanently in Naples and qualifies for Florida homestead.
Owners A and B would generally own non-homestead property. Owner C may qualify for the Florida homestead exemption. The difference is not: Canadian versus American.
It is: Florida homestead versus non-homestead.
An American citizen who maintains their permanent home in New York, Michigan, Ohio, Illinois or another state does not automatically receive Florida’s homestead exemption simply because they are American. Similarly, a Canadian is not excluded simply because they hold Canadian citizenship. The tax treatment depends primarily on whether the Florida property qualifies as that person’s permanent homestead.
Why Are Canadians Getting So Much Attention?
Canadians are a very visible part of Florida’s seasonal housing market. Thousands of Canadians own second homes, vacation homes and investment properties throughout Florida, particularly in destinations such as Southwest Florida and South Florida. So when Florida proposes a major tax advantage for permanent residents, Canadian snowbirds naturally want to know whether they will be affected.
But they are part of a much larger group that also includes:
- Americans with Florida second homes
- seasonal residents
- rental-property owners
- real-estate investors
- corporations and LLCs
- other foreign property owners
- owners of vacation properties that do not qualify for homestead
This is therefore much broader than a Canada-versus-Florida issue.
Will Canadian Property Taxes Automatically Increase?
No. There is nothing in the legislation that says this. Nor is there a special Canadian tax or foreign-owner surcharge contained in this proposal. In fact, one provision could actually help Canadian property owners. The proposed amendment lowers the annual assessment-growth limitation on non-homestead residential and non-residential property from 10% to 5%. That could provide additional protection for many Canadian-owned Florida properties if market values rise significantly. So describing the proposal simply as bad news for Canadian snowbirds misses an important part of the legislation.
Where Will Florida Replace the Lost Property-Tax Revenue?
This is the more legitimate question. Counties and municipalities rely heavily on property taxes to pay for local services. If substantially more homestead property value becomes exempt from taxation, governments will have to adapt. The Governor’s proposal has emphasized greater fiscal restraint at the local-government level while preserving funding for core services such as public safety and infrastructure. It also proposed a state trust fund to assist local governments with certain core services. That means the long-term outcome could involve some combination of: lower government spending, alternative revenue sources, different municipal fees or assessments, changes in millage rates, or continued growth in the overall tax base as Florida expands.
Could non-homestead property owners eventually carry a greater share of some local costs?
Yes, that is possible. But that is very different from saying Florida has enacted a plan to specifically raise Canadian property taxes.
Could the Changes Actually Increase Florida Property Values?
This is the part of the discussion that tends to get overlooked. Reducing the annual cost of owning a primary residence can make homeownership more attractive. If a qualifying Florida homeowner saves several thousand dollars annually in property taxes, their effective monthly cost of owning that home declines. That can increase purchasing power. It may also encourage more people to establish Florida residency, purchase homes or remain in homes they already own. If demand increases while housing supply remains constrained, that can potentially support property values. There is no guarantee that this proposal will cause Florida real estate prices to rise. Property values are influenced by many factors, including mortgage rates, insurance costs, inventory, employment, migration and economic conditions. But the basic economic argument is reasonable:
Lower ownership costs can make Florida housing more attractive.
And increased demand can support property prices.
Canadians Can Benefit From Appreciation Too
This is particularly important for Canadian snowbirds. A Canadian and a Florida resident can own identical houses on the same street. They may receive different property-tax treatment. But their homes are still part of the same real-estate market. If demand pushes neighborhood home values upward, both properties can appreciate. For example, suppose a Canadian purchases a Florida home for $600,000. Several years later, stronger demand contributes to the home’s market value rising to $700,000. The Canadian owner has potentially gained approximately $100,000 in property value even though the home does not receive the same homestead property-tax exemption as the Florida resident next door. The Canadian does not need to receive the exemption personally to participate in appreciation of the underlying real estate.
This Could Be Particularly Interesting for Canadians Using Financing
Financing adds another dimension. Many Canadians still assume that buying Florida real estate means either paying cash or obtaining financing through a Canadian bank. That is not necessarily the case. There are U.S. mortgage programs specifically designed for Canadian and other foreign-national buyers. Depending on the lender and program, Canadians may be able to obtain U.S. financing using Canadian credit, Canadian income, Canadian assets or the rental income generated by the Florida property. For investment properties, some financing programs can qualify borrowers primarily using the property’s rental income rather than conventional personal-income calculations. That allows Canadians to participate in the Florida real-estate market without necessarily committing the entire purchase price in cash.
Could Property-Tax Reform Attract Even More People to Florida?
Potentially.
Florida has already attracted substantial interstate migration over the past several years. If permanent Florida residents receive significantly greater property-tax advantages, that gives people considering a move to Florida another financial incentive. For someone comparing the cost of living in Florida with another state, lower property taxes on a primary residence can be meaningful.More permanent residents can mean: greater housing demand, more economic activity, more businesses, more construction, and potentially stronger long-term demand for Florida real estate. Canadian snowbirds who already own property could indirectly benefit from that growth.
What About Americans Who Own Florida Vacation Homes?
They face essentially the same situation as Canadians. An American living in Buffalo who owns a condo in Naples can own a non-homestead Florida property. A Michigan resident with a Fort Myers winter home can own a non-homestead property.An Ohio resident with a Sarasota vacation home can own a non-homestead property. Their American citizenship does not automatically make their Florida property a homestead. That is why headlines suggesting that Florida is somehow targeting Canadians are misleading. The distinction is primarily based on property use and residency, not nationality.
New Florida Residents May Also Have to Wait
There is another provision that further demonstrates that this proposal is not aimed specifically at Canadians. Under the proposal, someone establishing Florida residency on or after January 1, 2027 would initially receive a smaller exemption. Generally, they would have to maintain Florida residency for five years before becoming eligible for the larger exemption available to longer-term Florida residents. So an American permanently relocating from New York to Florida in 2027 would not necessarily receive the full enhanced exemption immediately either. Again, this is a Florida residency policy, not a Canadian citizenship policy.
The Bigger Picture for Canadian Snowbirds
Canadians should look beyond the sensational headlines. Yes, permanent Florida residents could receive a significant property-tax advantage. Yes, Canadians who continue to use their Florida property as a second home will generally not receive the same homestead benefit. But that does not automatically make the proposal negative for Canadian property owners. There are several potential positives:
Non-homestead assessment increases would be capped at a lower rate.
Lower taxes for permanent residents could increase Florida’s attractiveness.
Greater demand could support property values.
Existing Canadian owners would participate in any appreciation of their property.
Canadians continue to have access to U.S. foreign-national financing.
Canadian home equity may also be available to help structure a Florida purchase.
The larger question for Canadians should therefore not simply be:
“Will I get the same property-tax exemption as a Florida resident?”
A better question may be:
“What could these changes mean for the long-term value of the Florida real estate I own or am considering purchasing?”
The Bottom Line
Florida is not imposing a special property tax on Canadians. Canadian snowbirds are not uniquely being targeted. The proposed changes distinguish primarily between homestead and non-homestead property, which means Americans who own Florida second homes can be treated similarly to Canadian snowbirds. And while Canadians may not receive the same property-tax exemption as permanent Florida residents, they could still benefit from the larger economic effects of the policy. If lower property taxes make Florida an even more attractive place to live, increased demand could potentially support property values.
For Canadians considering purchasing property in Florida, that makes the story considerably more nuanced than many of today’s headlines suggest. Rather than viewing Florida property-tax reform simply as a new disadvantage for Canadian snowbirds, it may also represent another factor supporting the long-term attractiveness of owning Florida real estate. And with foreign-national mortgage programs, Canadian financing options and the ability to leverage Canadian home equity, Canadians may have more ways to participate in that market than they realize.
This article is provided for general informational purposes only. Property-tax, residency, mortgage and cross-border tax rules vary by individual circumstances. Canadians should obtain appropriate legal, tax and financial advice before establishing Florida residency or structuring a cross-border real-estate transaction.