Florida Amendment 3 Passed: What the Bigger Homestead Exemption Means for Owners, Buyers, and Investors

Florida Amendment 3 passed on November 3, 2026, when Florida voters approved the measure, which appeared on the ballot as “Increased Homestead Exemption; Lower Cap On Increases In Non-Homestead Property Assessments.” It is one of the biggest property tax changes Florida has seen in years, and it affects almost everyone who owns, or plans to own, real estate in the state.

Here’s a plain-language look at what Florida Amendment 3 changed, when it starts, and what it could mean for you.

The Vote

Constitutional amendments in Florida need at least 60% approval to pass. According to the Florida Division of Elections, Amendment 3 received about 61.98% “Yes” (4,917,796 votes) to 38.02% “No” (3,016,195 votes) and passed. Amendments 1 and 2 on the same ballot did not pass.

What Florida Amendment 3 Changes

Florida Amendment 3 takes effect January 1, 2027. Its main provisions:

1. A much larger homestead exemption (non-school taxes)

• The homestead exemption for all non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028.
• Starting in 2029, the exemption is adjusted for inflation.
• School district taxes are not affected by the larger exemption.

2. A phase-in for new Florida residents

People who are not Florida residents on December 31, 2026 receive the existing homestead exemption when they first qualify. The larger exemption begins with their fifth year of homestead exemption, “to the extent permitted by the U.S. Constitution,” according to the ballot language.

3. How Florida Amendment 3 lowers the cap for non-homestead property

For rentals, second homes, and commercial property, the yearly cap on increases in assessed value for non-school taxes drops from 10% to 5%, beginning January 1, 2027.

4. Other provisions

The amendment also requires the Legislature to create a uniform process that lets counties and cities raise the homestead exemption further, up to a home’s full assessed value. Special districts can do the same with voter approval. It also directs counties and municipalities to spend property tax revenue on specific categories, including public safety, schools, infrastructure, natural resources, debt payments, employee retirement benefits, and government operations.

Important Fine Print

• The amendment changes taxable value, not tax rates. Local governments still set millage rates, and fees and non-ad valorem assessments can still change. Your actual bill depends on all of these.
• The 5% cap limits assessed value, not your tax bill. School taxes on non-homestead property stay uncapped and are based on market value.
• Results will vary. How much an existing homesteader saves depends on their current Save Our Homes benefit and any other exemptions they have. Recent buyers, whose taxable values tend to sit closer to market value, may see a larger benefit.
• The details are still coming. Implementing legislation may add procedures, so watch for guidance from your county property appraiser.

Supporters, including Florida Realtors, backed the measure as tax relief. Some local officials and public safety groups, including the Florida Sheriffs Association, raised concerns about lower revenue for local governments.

What This Means If You Own or Are Buying in Florida

Current homeowners (homesteaded): Under Florida Amendment 3, starting in 2027, you could pay less in non-school property taxes. Make sure your homestead exemption is properly filed with your county property appraiser.

Sellers: A smaller expected tax bill can make a home more affordable to buyers who plan to live in it. Buyers will still look at the whole picture, including insurance costs, HOA fees, and the reset to market value after a sale.

Buyers already living in Florida: If you’re a Florida resident by December 31, 2026, the expanded exemption should be available to you once you qualify for homestead. Ask your property appraiser about deadlines.

Buyers moving to Florida in 2027 or later: Plan on the existing (smaller) exemption at first, with the larger exemption starting in your fifth year of homestead. Build that into your budget.

Investors and short-term rental owners: Rental and vacation properties don’t get the homestead exemption. However, the lower 5% cap on yearly assessment increases (non-school taxes) may slow how fast your assessed value can rise. Under existing law, assessments on non-homestead property can still reset after a change of ownership or a qualifying improvement. If you manage a short-term rental in an area like Palm Harbor, keep this in mind when you project operating costs.

Thinking About Your Next Move? Let’s Talk

Property tax changes like Florida Amendment 3 are only one part of your decision. Maybe you’re wondering whether now is a good time to sell, or you’re behind on payments and worried about foreclosure. Either way, I’m happy to help you understand your options. I’m David Rigney of David Rigney Real Estate Solutions. I work with homeowners nationwide who want to sell or avoid foreclosure, and I manage short-term rentals in Lake Geneva, WI, and Palm Harbor, FL. For Florida transactions, I work with trusted local Florida Realtors.

Reach out through davidrigneyrealestatesolutions.com for a no-pressure conversation. I’m committed to fair and equal treatment of every client, consistent with the Fair Housing Act.

Florida Amendment 3 FAQ

When does Florida Amendment 3 take effect?

Florida Amendment 3 takes effect on January 1, 2027.

Does Florida Amendment 3 apply to rental properties?

Rental properties do not get the homestead exemption. However, Florida Amendment 3 lowers the yearly cap on increases in assessed value for non-homestead property, including rentals, from 10% to 5% for non-school taxes, beginning January 1, 2027. For details on how exemptions work, see the Florida Department of Revenue’s property tax exemptions page.

Does Florida Amendment 3 change school taxes?

No. School district taxes are not affected by the larger homestead exemption under Florida Amendment 3.

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Disclaimer: This article is for general informational purposes only. It is not tax, legal, or financial advice. Property tax outcomes depend on your individual circumstances, local millage rates, and future implementing legislation. Please consult a licensed tax professional, attorney, or your county property appraiser about your situation. David Rigney is a licensed real estate broker in Illinois. For Florida transactions, I work with trusted local Florida Realtors.