Florida voters have approved Amendment 3, a constitutional change that will expand the non-school homestead property-tax exemption for eligible homeowners. The phased-in tax relief could make moving to a larger home more affordable for some Floridians, though real estate experts expect a gradual effect—not an immediate market surge.
Key takeaways
- The exemption rises to $150,000 in 2027 and $250,000 in 2028; it will be indexed to inflation starting in 2029.
- The measure passed with 62% of the vote, above the 60% required for approval.
- Estimated savings vary by county, and school-related property taxes are unchanged.
- Lower costs may encourage some current homeowners to move, but the amendment is not expected to transform the market overnight.
The tax reduction applies to eligible homesteaded properties, and the benefit will differ depending on a homeowner’s circumstances and local tax bill.
How the tax change works
The amendment increases the non-school portion of the homestead exemption from $25,000 to $150,000 beginning in 2027, then to $250,000 in 2028. From 2029, the exemption will be adjusted for inflation. Property taxes that fund schools are not affected.
Florida TaxWatch estimates average annual reductions in 2027 and 2028 of $515 and $1,037 in Miami-Dade County, respectively. The corresponding estimates are $581 and $1,171 in Broward, $339 and $683 in Collier, and $470 and $946 in Palm Beach.
Who qualifies—and when
Existing homeowners with qualifying homesteads stand to benefit first. People who were not Florida residents as of Dec. 31 will continue to receive the existing $25,000 exemption for the first five years of their homestead qualification; the expanded exemption becomes available after that waiting period.
That delay may limit the measure’s appeal as an immediate incentive for people considering a move to Florida from another state. Chris Wands, founder of The Wands Team at Douglas Elliman, described the change as an additional part of Florida’s appeal, alongside its weather and lack of a state income tax.
Possible effects on home sales
Lower ownership costs could help some current residents who have postponed buying a larger home because of taxes or interest rates. Wands said the potential boost could reach the middle market as families consider moving up, rather than being limited to luxury buyers.
The added purchasing capacity could also increase competition for homes, including higher-end properties. But the effect is uncertain: homeowners will not benefit equally, and market conditions and how the changes are implemented will matter. Wands does not expect an abrupt surge, framing the amendment as one influence on decisions rather than a change that will reshape Florida’s housing market by itself.