Florida voters are set to consider Amendment 3, a proposal to expand tax relief for primary-home owners. A new analysis warns that if local governments raise property-tax rates to offset lost revenue, rental properties could face higher bills—and landlords may pass some of those costs on to tenants. The projected increases are conditional, not automatic.
Key takeaways
- The analysis estimates an average annual increase of $406 per apartment unit by 2028 under a revenue-replacement scenario.
- Rental homes could see an estimated $1,081 increase, while non-homestead owner-occupied homes could rise by $1,196.
- The proposal would expand the homestead exemption for non-school property taxes, but would not change school-district taxes.
- Amendment 3 needs at least 60% voter approval to become part of Florida’s Constitution.
How the proposal could affect rental taxes
Amendment 3 would increase the exemption for primary residences from property taxes not used for schools. The exemption would rise to $150,000 in 2027 and $250,000 in 2028, with later adjustments for inflation. Rental properties, second homes and commercial properties would not receive that expanded exemption.
Jared Walczak, a senior fellow at the Tax Foundation, estimated that if local governments raise rates within legal limits to make up for reduced taxable value, residential rental-property tax burdens could increase 14.1% once the exemption is fully in place. The non-school portion could rise 22.6%. The proposal also includes a reduction in the annual assessment-growth cap for non-homestead properties, from 10% to 5%.
Why tenants could feel the impact
Walczak expects landlords to pass along a substantial share of higher costs over time through rents. The estimated $406 annual increase applies to an average apartment unit; it is not a set fee or a guaranteed rent increase. Actual effects would depend on local tax decisions and how property owners respond.
The analysis also cautions that higher costs could weigh on new construction and affordable-housing projects. That possibility is significant in a state where housing costs already put pressure on renters, though the tax estimates alone do not determine how rents will change.
What voters are being asked to decide
The amendment would limit the use of some local property-tax revenue to specified purposes, including public safety, infrastructure, natural-resource projects, local government operations, debt service and employee retirement benefits. Its supporters say the expanded exemption would provide relief to people living in their own homes. Critics of the tax shift warn that local governments could face pressure to cut spending, find other revenue or raise rates on properties that remain taxable.
A St. Pete Polls survey of 913 likely voters conducted September 15–17 found 44.9% support, 30.4% opposition and 24.8% undecided, with a margin of error of plus or minus 3.2 percentage points. The measure is scheduled for the November 3, 2026, ballot and would take effect January 1, 2027, if it receives the required 60% vote.