Buying a Palm Coast Home Before December 31: Why Homesteading Now Could Save You About $10,000

Amendment 3 passed on Tuesday, and most of the talk has been about what it saves people who already own here. There is a second story that fewer people are talking about, and it comes with a hard date: December 31, 2026.

I went through the actual text of the amendment, because the short summaries don't all say the same thing. Here is the part that matters if you are thinking about buying. If Florida is not your permanent home by December 31, the big new exemption does not start for you right away. You get a $50,000 exemption on non-school taxes for your first four homestead years, and the full amount starts in your fifth year.

On a Palm Coast home assessed at $250,000 or more, that gap comes to about $10,000 in taxes over those four years at today's rates. Buying a home here, moving in and making it your homestead before the year ends is the cleanest way to stay on the right side of that line.

Already own your home here? You can skip the deadline. Go straight to How much will I save? and type in your address.

Who should pay attention to December 31

You are moving to Florida from another state. This is the biggest one. If the move was already on your list for next year, moving it up by a few months could be worth five figures. If someone in your family has been talking about coming down, send them this today. Our relocation guide covers the rest of the move.

You own a second home here but live up north. If you have been planning to make the Florida house your full-time home someday, this is the moment to run the numbers. It has to be a real move: Florida becomes your permanent home, and you can't keep a residency-based tax break in another state. Your assessed value can also reset to market value the first year you homestead, so look at both sides before deciding. My second-home guide is a good place to start.

You rent in Florida. The way I read the text, a renter who has lived here full time has "maintained a permanent residence in this state." But the Florida Policy Institute has pointed out that the law doesn't define this for people who don't own, and the Legislature still has to write the procedures. Until it does, owning and homesteading your home by year end takes the question off the table. I would not call that a sure thing either way, so ask the Property Appraiser about your situation.

You are looking at a new build or a home that isn't homesteaded. Homestead is decided on January 1. Buy a brand-new home, an investor's rental or a second home after that date and your 2027 bill generally has no homestead exemption on it. Own it and live in it on January 1 and file on time, and the $150,000 exemption is on your 2027 bill, worth about $1,870 in Palm Coast. Your 3 percent Save Our Homes cap also starts a year sooner.

Who does not need to rush

If you already live in Florida and own your home, you are on the full track, and that doesn't change if you move within the state later. You file a new homestead application for the new house, and you can usually carry your Save Our Homes savings with you through portability.

If that is you, the question worth your time is how much you will save. My calculator pulls your assessed value from the county roll and shows what comes off your 2027 and 2028 bills.

Timing also matters less on a resale if you are already a Florida resident. When the seller has homestead on the home, the 2027 bill generally stays based on the seller's January 1 status, so closing in December may not lower that first bill. Your assessed value resets to market value the January after you buy, whenever that is.

And please don't buy the wrong house to beat a date. Ten thousand dollars is real money, but it won't make up for a bad roof, an insurance surprise or a home that doesn't fit. I would rather tell you to wait than rush you.

What the amendment says

There are now two tracks for homestead owners:

• Full exemption: $150,000 off the assessed value for county, city and special-district taxes in 2027, and $250,000 starting in 2028, rising with inflation after that.
• Newcomer track: anyone who homesteads a Florida home on or after January 1, 2027 and, in the amendment's words, "had not maintained a permanent residence" in Florida as of December 31, 2026. That owner gets $50,000 off non-school taxes, and the full amount begins with the fifth year of exemption.

School taxes are the same on both tracks, with the usual $25,000 exemption. The clock also starts when your homestead starts. Someone who moves here in 2027 and first homesteads for 2028 would be at $50,000 from 2028 through 2031 and reach the full amount in 2032.

What the gap looks like by town

This is the four-year difference between the two tracks: $200,000 of exemption a year for four years, on a home assessed at $250,000 or more, at today's non-school rates. Rates are reset every summer, so treat these as close estimates.

The exemption is also the same whether the home costs $400,000 or $1.5 million, so these numbers don't grow with the price of the house.

What has to happen, and by when

There are about eight weeks left, which is enough time if you start now.

1. This week: talk to a lender and get pre-approved. Get an insurance quote early on any home you like, and use my payment calculator to set a budget.
2. By about November 20: have a home under contract if you are financing. Most financed closings take 30 to 45 days, and the holidays slow everyone down. A cash purchase can close in two to three weeks.
3. By December 31: close and move in. Get your Florida driver's license at the new address, register your car, register to vote if you vote, and keep your closing papers and moving receipts. Those are the records that show when Florida became home.
4. January 1, 2027: you need to own the home and be living in it as your permanent residence.
5. By March 1, 2027: file your homestead application with the county Property Appraiser. In Flagler County that office is at 1769 E. Moody Blvd., Building 2, Suite 201 in Bunnell, (386) 313-4150. Miss this and you wait a year.

For a new build, only homes that are finished or nearly finished can make this date. I keep track of what the builders have ready.

Common questions

Can I just get a Florida driver's license by December 31?

A license is evidence, not the test. The question is whether Florida was really your permanent home. The Legislature still has to write the procedures, so I would not count on paperwork alone.

I bought a home in Florida in 2026 but never filed for homestead. Am I OK?

If you live in it full time, you should only need the application. File by March 1, 2027. My main Amendment 3 post walks through it and has the savings calculator.

Is this tax advice?

No. This is how I read the amendment as a REALTOR, and procedures are still to come. Confirm your own situation with the Property Appraiser or a tax professional before you make a decision.

Homes that can still make the date

Once December 31 is the goal, the search gets simpler. You want homes that can really close in time: vacant or move-in ready resales, finished new builds, and sellers who are flexible on dates. These are good places to start:

• Palm Coast homes for sale, where about $10,000 is on the line and the choices are widest.
• Flagler Beach homes for sale, if you want to be near the ocean.
• Ormond Beach homes for sale, just south of Flagler County.
• New construction in Palm Coast, for finished or nearly finished homes.
• Communities by area, if you are still deciding where you want to live.

The websites won't tell you which homes can really close by year end, and that takes a phone call to the listing agent. Tell me what you are looking for and I will send you homes that fit, including off-market and coming-soon homes, and tell you which ones can make the date. Or pick a time with me or call (386) 627-3612.