Florida voters approved a constitutional amendment expanding the homestead exemption, offering eligible homeowners a larger break on certain property taxes. The exemption will rise in stages, reaching $250,000 in 2028 and then adjusting for inflation. Many people who establish Florida residency after 2026 will have to wait five years to receive the expanded benefit.
Key takeaways
The measure combines homeowner tax relief with limits on assessment growth for other properties, while leaving school-board property taxes outside the exemption change.
- Amendment 3 passed with about 62% of the vote, above Florida’s 60% constitutional threshold.
- The homestead exemption increases to $150,000 in 2027 and $250,000 in 2028.
- New residents who are not Florida residents by Dec. 31, 2026, generally must wait until their fifth year of homestead eligibility for the expanded exemption.
- The annual assessment cap for many non-homestead properties falls from 10% to 5%.
How the exemption will change
The measure expands the portion of an eligible primary residence’s assessed value shielded from most local property taxes. The exemption is currently $50,000; it is scheduled to rise to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029. Taxes levied for school boards are not covered by this change.
The savings will vary with a home’s assessed value and local tax rates. A Realtor.com analysis cited in reporting estimated that the median Florida homeowner could save about $1,800 a year by 2028, but individual results may differ. For example, the change does not mean that every homeowner’s entire property-tax bill will fall by the same amount.
Residency rules for newcomers
The larger exemption is not immediately available to everyone who moves to Florida. People who are not Florida residents by Dec. 31, 2026, generally receive the existing exemption when they first qualify for homestead status; the expanded benefit begins in their fifth year of eligibility. The rule ties access to the tax break to a period of residency and qualifying homeownership.
The waiting period could shape relocation plans, particularly for buyers moving from states with higher taxes. Real estate professionals have reported interest from affluent prospective buyers, although inquiries do not necessarily translate into completed purchases.
Effects on other properties and local budgets
The amendment also reduces the annual limit on increases in assessed value for many properties that are not homesteaded, including vacation homes, rentals, investment properties and commercial buildings. The cap drops from 10% to 5%, potentially slowing growth in their taxable assessments. It applies to assessed values rather than tax rates, and a sale can trigger a reassessment.
Local governments may face tighter budgets as the expanded exemption reduces the taxable value of primary residences. Because school-board taxes are excluded, the revenue effects are concentrated elsewhere in local government. The phased increases mean those pressures could grow through 2028, prompting attention to how counties and municipalities will fund services and operations.