Florida voters approved Amendment 3 on November 3, 2026, with about 62% of the vote, clearing the 60% needed to change the state constitution. It is one of the biggest changes to Florida property taxes in years, and it will affect how homes are priced, bought and sold here starting in 2027.
What Amendment 3 does
| What changes | Before | After |
|---|---|---|
| Homestead exemption, non-school taxes | Up to $51,411 (2026) | Up to $150,000 on January 1, 2027, and up to $250,000 on January 1, 2028, then adjusted for inflation starting in 2029 |
| Homestead exemption, school taxes | $25,000 | $25,000 (no change) |
| Yearly cap on assessment increases for non-homestead property (second homes, rentals, commercial) | 10% | 5%, starting January 1, 2027 |
| New Florida residents | Same exemption as everyone else | People who become permanent residents on or after January 1, 2027 start at about $50,000 and get the larger exemption after four years of homestead |
| Save Our Homes cap and portability | 3% or inflation, whichever is less | No change |
The first tax bills that reflect the change arrive in November 2027.
What it means for homeowners
If you live in your home and have a homestead exemption, your county and city tax bill should drop. As an example, at a non-school tax rate of 13 mills ($13 per $1,000 of value), the larger exemption would save a homeowner about $1,280 a year in 2027 and about $2,580 a year in 2028 compared with today, as long as the home is assessed above those exemption levels. Actual rates vary by city and county, and local governments may adjust them.
Homeowners whose assessed value is below the new exemption amounts will see their non-school taxes shrink to little or nothing. That includes many long-time owners whose Save Our Homes cap has kept their assessed value low.
What it means for buyers
- The tax shock of buying gets smaller. When a home sells, its assessed value resets to market value. A much larger exemption softens that jump for buyers who will live in the home.
- Timing matters if you are moving to Florida. People who are permanent Florida residents by December 31, 2026 qualify for the larger exemption. People who arrive on or after January 1, 2027 start at about $50,000 and wait four years for the full amount. If you are relocating, talk with your county property appraiser now about what establishes permanent residency and how the homestead filing works.
- Do not rely on the seller's tax bill. It was always a poor guide for a new buyer, and with exemptions changing over the next two years it is an even worse one. Ask for an estimate based on your purchase price and your own exemptions.
What it means for sellers and move-up buyers
Many Florida homeowners have stayed put because moving meant giving up years of Save Our Homes savings and paying taxes on a new home at full market value. Portability still lets you carry part of those savings with you, and the larger exemption shrinks the gap between your current bill and the bill on your next home. That could make it easier for some owners to sell and move up, move down, or move closer to family.
What it means for investors and second-home owners
Second homes, rentals and commercial property do not get the homestead exemption, but they do get a smaller yearly cap: assessments can rise no more than 5% a year instead of 10%, starting in 2027. That makes future tax bills more predictable for landlords and for the many seasonal owners in our condo and 55+ communities.
What it means for the market
- Local budgets will change. State economists estimated that local governments could lose close to $5 billion in the first year, growing to close to $12 billion a year over time. Cities and counties may respond by cutting spending, raising tax rates, or adding fees and special assessments. School funding is not affected.
- Owning a primary home in Florida gets cheaper relative to renting or owning a second home, which could add demand from full-time buyers.
- Some details are still to come. Property appraisers will apply the new exemptions starting with the January 1, 2027 assessment, and more guidance on residency and filing is expected before then.
Thinking about buying or selling?
Amendment 3 changes the math on almost every home purchase in Florida, especially for buyers relocating from out of state before December 31. If you want to know what it means for a specific home or move, reach out to Paul Christle or call (561) 420-9620. You can also start with our Find Your Home tool or see what your home is worth on our home value page.
Sources: Manatee County Property Appraiser, Amendment 3 FAQ; Florida Department of Revenue, 2026 homestead exemption; CBS12; WUSF; FOX 13. As of November 4, 2026. The tax savings example is for illustration only.