By Anika Milian, Esq., Co-Founding Partner, B&M Law Group, PLLC · November 4, 2026
Florida Amendment 3 passed. On November 3, 2026, Florida voters approved the property tax amendment with about 62% of the vote, just over the 60% needed to change the Florida Constitution. It is the biggest change to Florida property taxes in years. Homeowners get a much larger homestead exemption, real estate investors get a tighter cap on how fast their assessed values can rise, and anyone moving to Florida needs to pay attention to one key date.
Here is what Amendment 3 means for your property taxes, whether you own your home, a rental property, a vacation home or commercial real estate in Florida.
Florida Amendment 3 at a glance
- Homestead exemption increase: the Florida homestead exemption for non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028, then adjusts for inflation.
- School taxes do not change: the existing $25,000 exemption that covers all property taxes, including school taxes, stays the same.
- Investment property cap drops from 10% to 5%: for rental properties, second homes and commercial property, the yearly limit on increases in assessed value is cut in half.
- Waiting period for new Florida residents: if Florida was not your permanent residence on December 31, 2026, the larger exemption starts in your fifth year.
- Local government spending rules: counties and cities are directed to use property tax revenue for public safety, education, infrastructure and natural resources.
- Effective date: January 1, 2027.
What Amendment 3 means for Florida homeowners
Today, a homesteaded Florida home gets roughly $50,000 off its assessed value: the first $25,000 applies to all property taxes, and a second exemption of about $25,000 applies only to non-school taxes. Amendment 3 dramatically increases that second piece.
Here is an example for a primary residence with an assessed value of $400,000:
| Today | 2027 | 2028 | |
|---|---|---|---|
| Taxable value for non-school taxes | about $349,000 | $250,000 | $150,000 |
| Taxable value for school taxes | $375,000 | $375,000 | $375,000 |
Your actual property tax savings depend on your county and city millage rates, and on how your local governments set their budgets after this change. School taxes are a large share of most Florida property tax bills, so your bill will go down, but it will not disappear.
Homeowner checklist:
- Already have homestead? In most cases you do not need to reapply. Your homestead exemption renews automatically. Check your TRIM notice in August 2027 to see the new numbers.
- Just bought a home? Apply for the homestead exemption with your county property appraiser by March 1 of the year after you own and live in the home as of January 1.
- Home held in a revocable living trust? That is how we recommend most families hold their home. Confirm your trust language preserves the homestead exemption. With exemptions this large, it matters more than ever.
What Amendment 3 means for real estate investors
Investment properties do not get the homestead exemption, but Amendment 3 still changes the math for investors.
The cap on assessed value increases drops from 10% to 5%. Under current Florida law, the assessed value of non-homestead property cannot go up more than 10% a year, even if market values rise faster. Amendment 3 cuts that limit to 5% a year. This applies to:
- Long-term rental properties (single-family, condos, small multifamily)
- Short-term and vacation rentals
- Second homes and seasonal homes owned by non-residents
- Commercial property, including office, retail and warehouse space
- Property held in an LLC or other entity
How much can the 5% cap save? Take a rental property assessed at $500,000 in a market where values climb faster than 10% a year. After three years, the old 10% cap would allow an assessed value of about $665,500. The new 5% cap holds it to about $578,800. That is roughly $86,700 less in assessed value being taxed every year, and the gap keeps growing over time.
What investors should know before underwriting a deal:
- The cap limits your assessed value, not your tax bill. If your city or county raises its millage rate, your taxes can still go up by more than 5%. With local governments losing homestead revenue, watch millage rates, fees and special assessments closely.
- The cap generally resets when a property is sold. When you buy, expect the assessed value to be reset to market value, then protected by the 5% cap going forward. Do not underwrite an acquisition using the seller's tax bill.
- Renting out your homestead can cost you the exemption. Under Florida law, renting your entire homestead for more than 30 days a year for two years in a row is treated as abandoning it. With a $250,000 exemption on the line, think twice before turning your primary residence into a rental.
- Entity structure matters. Holding rentals in an LLC is still the right move for liability protection for most investors, but it does not change your property tax treatment. A property held by an LLC is non-homestead property.
Moving to Florida? The December 31, 2026 deadline matters
Amendment 3 treats people differently depending on whether Florida was their permanent residence on December 31, 2026. If it was not, you receive the current homestead exemption when you first qualify, and the bigger exemption starts in your fifth year.
If you are relocating to Florida right now, get your proof of Florida residency in order: driver's license, vehicle and voter registration, and a declaration of domicile. Talk to an attorney about your timeline before you assume you qualify.
Buying or selling a Florida property in 2027
When a closing happens before the current year's tax bill is out, property taxes are typically prorated using the prior year's bill. In 2027, last year's numbers may not reflect the new homestead exemption or the 5% cap. Buyers and sellers should talk to their closing attorney about whether a re-proration provision belongs in the contract.
How Amendment 3 affects local governments
A state economic analysis estimated Florida local governments could lose nearly $5 billion at first, approaching $9 billion the next year, with a recurring impact of nearly $12 billion. Supporters see overdue property tax relief after years of rising bills. Opponents, including local governments and law enforcement groups, warned it could reduce funding for services.
Over the next year, watch how your county and city adjust their 2027 budgets, whether new fees or assessments appear, and any implementation guidance from the Legislature and property appraisers.
Florida Amendment 3 FAQ
When does Florida Amendment 3 take effect?
January 1, 2027. The homestead exemption for non-school taxes rises to $150,000 in 2027 and $250,000 in 2028.
Does Amendment 3 eliminate property taxes in Florida?
No. It reduces non-school property taxes on homesteaded homes. School taxes still apply to value above $25,000, and investment properties still pay full property taxes, with a lower 5% cap on assessed value increases.
Does Amendment 3 apply to rental and investment properties?
Yes, but differently. Rentals, second homes and commercial properties do not get the homestead exemption. They get a lower cap on yearly assessed value increases: 5% instead of 10%.
Do I need to reapply for my homestead exemption?
In most cases, no. Existing homestead exemptions renew automatically. If you bought a home recently, file with your county property appraiser by March 1.
I just moved to Florida. Do I get the $250,000 homestead exemption?
If Florida was not your permanent residence on December 31, 2026, you get the current exemption at first, and the larger exemption begins in your fifth year.
Talk to a Florida real estate attorney
If you want to understand how Amendment 3 affects your home, your rental properties or your estate plan, our team at B&M Law Group can help. We handle real estate closings and title, estate planning, asset protection and business law throughout Miami and South Florida, in English and Spanish.
This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Please consult an attorney about your specific situation.