Florida Tax Law Changes Taking Effect in 2026

Florida’s annual tax package typically includes dozens of technical changes, many of which apply only to specific industries or government entities. This year’s legislation is different.

Several of the new provisions could directly affect homeowners, businesses and public institutions, creating opportunities to reduce taxes, improve long-term planning and make more informed financial decisions.

From sales tax refunds for hurricane-resistant home improvements to expanded property tax portability and new refund opportunities for university construction projects, these changes may be worth considering before making major financial decisions.

Below are five provisions we believe deserve your attention.

Home Hardening Projects May Now Qualify for Sales Tax Relief

Many Florida homeowners are investing in impact-resistant windows and doors to better protect their homes from hurricanes. In many cases, these improvements also help satisfy insurance requirements. Until now, however, these products generally remained subject to Florida sales tax, increasing the overall cost of making a home more resilient.

Beginning July 1, 2026, homeowners may qualify for a refund of the sales tax paid on eligible impact-resistant windows, exterior doors and garage doors installed on qualifying homestead property.

Unlike a traditional sales tax exemption, homeowners will continue to pay sales tax at the time of purchase. After installation, they may apply to the Florida Department of Revenue for a refund.

To qualify:

• The home must have a Florida homestead exemption.
• The property must have a just value of $700,000 or less.
• The products must meet Florida’s impact-resistance standards.

The maximum refund is $500 per residence for qualifying purchases made between July 1, 2026, and June 30, 2029.

While the refund will not cover the full cost of a home hardening project, it can provide meaningful tax savings for homeowners who are already planning to invest in storm-resistant improvements.

Example

A homeowner replaces several windows with qualifying impact-resistant windows in August 2026 and pays $425 in Florida sales tax as part of the purchase. After the windows are installed, the homeowner submits the required documentation to the Florida Department of Revenue and receives a $425 sales tax refund, reducing the overall cost of the project.

What this means: If you’re planning to replace windows or doors over the next few years, completing the project after July 1, 2026, and keeping your purchase documentation could help reduce the overall cost of the improvement.

Expanded Save Our Homes Portability Creates New Planning Opportunities

Florida’s Save Our Homes assessment limitation remains one of the state’s most valuable property tax benefits. As a home’s market value increases, the assessment limitation helps restrict annual increases in taxable value, often producing substantial property tax savings over time.

Current law allows homeowners to transfer, or “port,” accumulated Save Our Homes benefits when purchasing a new Florida homestead. Under the previous rules, however, the benefit generally had to be transferred from the homeowner’s immediately preceding homestead.

Beginning with the 2027 property tax roll, homeowners will be able to transfer their accumulated Save Our Homes benefit from any homestead abandoned within the previous three years.

This added flexibility is particularly valuable for homeowners who relocate more than once within a relatively short period. Under prior law, a second move could unintentionally reduce or eliminate portability benefits. The new legislation helps preserve those valuable property tax savings while giving homeowners greater flexibility when buying and selling Florida homes.

Example

A homeowner sells a Florida homestead in 2027 and purchases another home. Two years later, a job relocation requires another move within Florida. Under the previous rules, transferring the accumulated Save Our Homes benefit after the second move could have been more restrictive. Under the new law, the homeowner has greater flexibility because the portability benefit may be transferred from any homestead abandoned within the previous three years.

What this means: If you anticipate moving more than once during the next several years, it may be worthwhile to review how the expanded portability rules could affect your long-term property tax planning. Evaluating these opportunities before buying or selling a home may help preserve valuable tax savings.

New Property Tax Estimate Requirements May Help Florida Homebuyers

One of the most common surprises for Florida homebuyers doesn’t happen at closing. It arrives later, when the first property tax bill shows up in the mailbox.

Many online real estate listings currently display the seller’s existing property taxes. Those amounts often reflect years of accumulated homestead exemptions and Save Our Homes assessment limitations, making them significantly lower than what a new owner may owe after purchasing the property.

Beginning in 2027, online real estate listing platforms will be required to display estimated property taxes based on the property’s listing price instead of simply showing the current owner’s tax bill. The estimates must be calculated using formulas developed by the Florida Department of Revenue and include disclosures explaining that exemptions and other factors may affect a buyer’s actual tax liability.

These estimates are especially important because Save Our Homes benefits generally do not transfer automatically to a purchaser. Although buyers may qualify for their own homestead exemption after purchasing a home, they should not expect their future property taxes to match those of the previous owner.

While the estimates still will not reflect every exemption that may apply to an individual buyer, they should provide prospective homeowners with a much more realistic picture of future property taxes before making a purchasing decision.

What this means: If you’re purchasing a Florida home, don’t rely solely on the seller’s current property tax bill when estimating your future ownership costs. The new disclosure requirements should provide more meaningful information, but discussing the property’s expected tax assessment before closing can help prevent costly surprises.

Public Universities Receive a New Refund Opportunity on Construction Projects

This year’s legislation also addresses a long-standing sales tax issue affecting construction projects for Florida’s public universities and Florida College System institutions.

Governmental entities generally do not pay Florida sales tax when purchasing tangible personal property directly. Construction projects, however, have historically been treated differently.

Under Florida sales tax rules, contractors, not the governmental entity, are considered the purchasers of building materials incorporated into real property. As a result, contractors constructing buildings for public universities typically paid sales tax when purchasing materials, even though the completed project ultimately belonged to an otherwise tax-exempt institution.

Although that sales tax generally became part of the overall contract price paid by the university, there was no practical method for the institution to recover those costs.

The new law changes that.

Beginning July 1, 2026, state universities and Florida College System institutions may apply to the Florida Department of Revenue for a refund of sales tax paid on qualifying construction materials incorporated into public works projects. The institution must submit documentation demonstrating that sales tax was paid on eligible materials used in the project, after which the Department of Revenue will process the refund.

While this provision primarily benefits Florida’s public higher education institutions, it may also affect contractors working on qualifying university construction projects by creating new documentation requirements needed to support future refund applications.

Example

A state university hires a contractor to construct a new academic building. The contractor purchases $10 million of construction materials and pays Florida sales tax because, under Florida law, the contractor is considered the purchaser of those materials. Although the sales tax becomes part of the university’s construction costs, the university may now apply for a refund of the qualifying sales tax paid on materials incorporated into the completed public works project.

What this means: Universities and Florida College System institutions planning significant capital projects should begin discussing documentation requirements with their construction managers and contractors now. Establishing clear documentation procedures before construction begins can help support future refund claims and allow institutions to recover the maximum available tax savings.

Sales Tax Holidays Continue to Expand

Florida’s sales tax holidays continue to expand, creating additional opportunities for consumers to save on everyday purchases while giving businesses new compliance requirements to consider.

One of the most notable changes affects Florida’s permanent back-to-school sales tax holiday. Beginning in 2026, the exemption period will start earlier, running from July 20 through August 20 each year instead of only during the month of August.

Families will continue to receive sales tax exemptions on qualifying clothing, school supplies, learning aids and certain computers, while benefiting from additional time to complete their back-to-school shopping.

The legislation also establishes a new temporary sales tax holiday for qualifying hunting, fishing and camping supplies purchased between September 1 and December 31, 2026. Eligible products include many fishing supplies, camping equipment, firearms, ammunition and related accessories, subject to specified price limitations.

In addition, Florida has permanently expanded an existing sales tax exemption to include propane tanks with a capacity of 20 pounds or less. Although the savings on an individual purchase may be modest, the exemption permanently reduces the cost of purchasing or replacing the standard propane tanks commonly used for outdoor grills, portable generators and emergency preparedness.

For retailers, these changes involve more than simply recognizing new exemption periods. Businesses that sell qualifying products should review their point-of-sale systems, verify product taxability coding and ensure employees understand when each exemption applies. Proper preparation can help avoid incorrect tax collection and reduce the administrative burden during the sales tax holiday periods.

What this means: Florida’s expanding sales tax holidays present opportunities for both consumers and businesses. Individuals may benefit by timing eligible purchases during the applicable exemption periods. Businesses selling qualifying products should review their sales tax procedures before each holiday begins to help ensure the exemptions are applied correctly and customers are charged the appropriate amount of sales tax.

Looking Ahead: Planning Today Can Help You Take Advantage of Tomorrow’s Tax Savings

As with many tax law changes, the details matter. Eligibility requirements, documentation standards and timing can all affect whether these new provisions ultimately produce tax savings.

Planning ahead, rather than reacting after the fact, often creates the best opportunity to take full advantage of new tax legislation.

If you have questions about how these changes may affect your personal or business tax situation, the professionals at James Moore are here to help. Our team continues to monitor legislative developments and works closely with clients to identify planning opportunities that support both immediate needs and long-term financial goals.

Contact a James Moore professional to discuss how these new Florida tax law changes may fit into your overall tax strategy.

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