Florida voters have approved Amendment 3, expanding the homestead property-tax exemption for non-school taxes. The change is expected to reduce bills for eligible homeowners beginning in 2027, with larger savings a year later. Real estate professionals say lower ownership costs could encourage some households to move, though a sudden market surge is unlikely.
Key takeaways
The amendment passed with 62% of the vote, exceeding the 60% required for approval. Its impact will build over several years and will not apply equally to all homeowners.
- The non-school homestead exemption rises to $150,000 in 2027 and $250,000 in 2028.
- School-related property taxes are not affected.
- Estimated average annual savings in 2028 range from $683 in Collier County to $1,171 in Broward County.
- The change could prompt some current owners to consider moving, but experts do not expect an overnight market boom.
How the exemption will change
The amendment increases Florida’s non-school homestead exemption from $25,000 to $150,000 starting in 2027, then to $250,000 in 2028. Beginning in 2029, the exemption will be adjusted for inflation. Taxes that support schools remain unchanged, so the measure does not remove the full property-tax burden.
The higher exemption is aimed primarily at qualifying homesteaded properties. People who were not Florida residents as of Dec. 31 will receive the existing $25,000 exemption during their first five years of homestead qualification; the expanded amount begins after that waiting period.
Potential savings across South Florida
Florida TaxWatch estimates that average property-tax reductions will vary by county. In Miami-Dade, the projected decrease is $515 in 2027 and $1,037 in 2028. Broward’s estimates are $581 and $1,171, while Collier’s are $339 and $683. In Palm Beach County, the projected reductions are $470 in 2027 and $946 in 2028.
These are county averages, not guaranteed savings for every household. Individual results will depend on property and tax circumstances, and the school-tax portion is not part of the expanded exemption.
What it could mean for the housing market
Existing homeowners are positioned to benefit first. Chris Wands, founder of The Wands Team at Douglas Elliman, said lower ownership costs could encourage some households that have delayed moving because of taxes and interest rates to seek larger homes. That activity could support demand beyond the luxury market, including among middle-market buyers.
The amendment may also add to competition for homes, particularly at the higher end, but the effect is expected to be gradual. The five-year wait for new residents to access the larger exemption makes a major influx from other states less likely. Wands described the measure as one part of Florida’s appeal, alongside factors such as its lack of a state income tax and warm weather, rather than a change likely to transform the market on its own.