Florida voters have approved Amendment 3, a constitutional change that expands tax breaks for qualifying homeowners and slows assessment growth on other properties. The measure won about 62% of the vote, clearing the 60% threshold. Its main provisions begin in 2027, while local officials prepare for reduced property-tax revenue and questions about how communities will fund services.
Key takeaways
- The homestead exemption for most local, non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028.
- The exemption will adjust for inflation starting in 2029; school taxes are not affected.
- The annual assessment cap for non-homestead properties drops from 10% to 5%.
- New residents who establish Florida residency after Dec. 31, 2026, must wait until their fifth year of homestead eligibility for the expanded exemption.
The savings will vary with assessed value and local tax rates. A prior Realtor.com analysis estimated that a median Florida homeowner could save about $1,800 a year by 2028, but that figure is not a guarantee for individual households.
What changes for homeowners
The larger exemption applies to qualifying homeowners who establish Florida residency by the end of 2026. It shields more of a homesteaded property’s assessed value from most local property taxes. For people who move to Florida later, the existing exemption remains available upon qualification, with the expanded benefit delayed until the fifth year, subject to applicable requirements.
The change does not alter school-tax exemptions, Save Our Homes protections or portability. The reduced assessment cap also applies to second homes, rentals, investment properties and commercial buildings. It limits annual growth in assessed value—not tax rates—and an assessment may reset when a property changes hands.
Local budgets face a new calculation
The tax relief could narrow revenue available to counties, cities and other local governments. Florida relies on property taxes to support services, and critics have warned that lower collections could put pressure on public safety and other local priorities. The impact may differ widely by community, depending on property values, tax rates and budget choices.
Supporters say lawmakers and local leaders can put the measure into effect while protecting essential services. The Legislature and local governments are expected to work through implementation and administrative details. The amendment does not itself specify how communities should replace any lost revenue.
Market effects remain uncertain
Lower carrying costs could improve affordability for some owners and buyers, while the smaller assessment cap may slow tax-bill growth for non-homestead properties. But renters and businesses may not receive the homestead exemption directly, and opponents have raised concerns that tax burdens could shift toward rental properties or other taxpayers.
Real-estate professionals have reported interest from prospective buyers, including in South Florida, but inquiries do not necessarily become purchases. The amendment’s longer-term effects on home prices, rents and municipal services will depend on local tax decisions and how the new rules play out after 2027.
- Florida voters approve Amendment 3, | Florida Realtors.
- Florida Voters Approve Landmark Measure To Reform Property Taxes, Realtor.com.
- Florida approves sweeping property-tax breaks, New York Post.