On November 3, 2026, Florida voters approved Amendment 3, one of the most significant updates to the state’s property tax system in years. It expands the homestead exemption for primary residences, tightens assessment limits on second homes and investment properties, and sets new rules for people relocating to Florida.
Whether you own property here today or are thinking about buying, here’s a clear overview of what’s changing.
1. A Much Larger Homestead Exemption
Today, qualifying homeowners receive up to $50,000 in homestead exemptions on non-school property taxes. Amendment 3 raises that significantly:
- 2027: $150,000
- 2028: $250,000
- 2029 onward: adjusted annually for inflation
The exemption applies to a home’s assessed value, not its market value.
2. School Taxes Stay the Same
The expanded exemption does not apply to school district taxes. The existing $25,000 school-tax exemption remains, and homeowners will continue paying school taxes as they do today.
3. Timing Matters for New Residents
Eligibility now depends on when you become a Florida resident:
- Residents as of December 31, 2026 may qualify for the expanded exemption, as long as they meet the ownership, residency, and homestead requirements.
- Those who become residents after December 31, 2026 will start with the current exemption, and the expanded exemption will begin in their fifth year of homestead eligibility, to the extent permitted by the U.S. Constitution.
Keep in mind that owning property in Florida does not on its own make you a resident or qualify the home for homestead benefits.
4. Second Homes, Rentals, and Investment Properties
For non-homestead properties, including vacation homes, rentals, and commercial real estate, the annual cap on assessed-value increases drops from 10% to 5% starting in 2027.
This cap applies to non-school taxes only. It limits how much the assessed value can rise each year, not how much the total tax bill can rise.
5. Room for Additional Local Exemptions
The amendment directs the Florida Legislature to create a process allowing counties and cities to offer larger homestead exemptions on their own tax levies, potentially up to a property’s full assessed value. Certain special districts may also offer additional exemptions with voter approval.
6. When It Takes Effect
Amendment 3 takes effect January 1, 2027. The first exemption increase applies to the 2027 tax year, with the second following in 2028. Owners will first see the changes on tax bills issued in November 2027.
The Bottom Line
Amendment 3 reshapes how Florida taxes both primary residences and non-homestead properties. How it affects any one property will depend on its assessed value, exemptions, local tax rates, and the owner’s eligibility.
For homeowners, buyers, and investors alike, these changes are now an important part of understanding the true cost of owning real estate in Florida.
If you have questions about how this could affect a purchase, a sale, or simply the value of your current home, I’m always happy to talk.
Joelle & Team
