Florida voters will consider a significant property tax proposal in the November 3, 2026, general election. Amendment 3, officially titled “Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments,” originated as House Joint Resolution 1F and was placed on the ballot by the Florida Legislature.
If approved by at least 60% of voters, Amendment 3 would make several changes affecting homestead property, rental property, commercial real estate, second homes, and local government property tax revenue. Most of its provisions would take effect January 1, 2027.
For purposes of Florida property taxes, a homestead is generally a home that its owner uses as a permanent primary residence. A homestead exemption removes part of that home’s assessed value from taxation. In simple terms, a larger exemption means a smaller portion of the home’s value is used to calculate the property tax bill.
For homeowners, buyers, investors, and others involved in Florida real estate, here is what to know before the vote.
The Homestead Exemption Would Increase Substantially
Under current Florida law, qualifying homestead property receives a $25,000 exemption that applies to all property taxes, including school district taxes. An additional exemption of up to $25,000 applies to the assessed value between $50,000 and $75,000 for non-school taxes. As a result, the total exemption currently tops out at approximately $50,000 for non-school levies.
Amendment 3 would increase the homestead exemption for non-school property taxes to:
- $150,000 beginning January 1, 2027; and
- $250,000 beginning January 1, 2028.
For example, for a homestead with an assessed value of $400,000, approximately $350,000 may currently remain subject to non-school property taxes after applying the existing exemptions. Under the proposed $150,000 exemption in 2027, approximately $250,000 would remain subject to those taxes. This does not mean the homeowner’s tax bill would decrease by $100,000. It means that $100,000 less of the home’s assessed value would be used to calculate non-school property taxes.
Beginning in 2029, the exemption amount would be adjusted annually for inflation based on changes in the Consumer Price Index. The existing $25,000 exemption applicable to school district taxes would remain in place.
The amendment also leaves Florida’s Save Our Homes assessment limitation intact. That provision generally limits annual increases in the assessed value of homestead property to the lower of 3% or the applicable change in the Consumer Price Index.
Importantly, an exemption reduces the assessed value subject to taxation. It does not directly reduce a property’s market value or the tax rate imposed by a local taxing authority. The actual savings would therefore depend on the property’s assessed value and the applicable local property tax rates.
New Florida Residents Would Be Treated Differently
One of the most important details for buyers and relocating clients is the amendment’s residency distinction.
The increased exemption would generally be available immediately to people who are Florida residents as of December 31, 2026. A person who was not a Florida resident by that date and later qualifies for homestead would initially receive an exemption of up to $50,000. The increased exemption would begin in the fifth year of that person’s homestead exemption, subject to constitutional requirements and any implementing legislation.
Beginning in 2030, a county, municipality, or school district could shorten the five-year period by a two-thirds vote of its governing body if it determines that doing so is warranted by a critical local need.
This distinction could become an important consideration in relocation and home-purchase planning. Prospective residents should not assume that buying a Florida home after January 1, 2027, would immediately provide the same exemption available to established Florida residents. The timing of residency, homestead eligibility, and the purchase itself may affect the property’s tax treatment.
The Assessment Cap for Non-Homestead Property Would Drop From 10% to 5%
Amendment 3 would also affect property that does not qualify for the homestead exemption, including rental properties, commercial real estate, and second homes.
Florida law currently limits annual increases in the assessed value of many non-homestead properties to 10% for non-school tax purposes. Amendment 3 would reduce that cap to 5% beginning January 1, 2027.
Unlike an exemption, which reduces the amount of assessed value that is taxed, an assessment cap limits how quickly the assessed value may increase from one year to the next.
The lower cap could benefit owners whose properties are appreciating rapidly by limiting how quickly their assessed values may rise from year to year. However, the cap does not prevent reassessment following events such as a qualifying change of ownership or certain improvements. Buyers and investors should continue to evaluate the possibility of reassessment when analyzing the tax consequences of a transaction.
Local Governments Could Increase Homestead Relief Further
The amendment would require the Legislature to establish a uniform procedure through which counties and municipalities could increase the homestead exemption for their respective levies, potentially up to the property’s full remaining assessed value. Special districts could also increase the exemption for their levies, but only with voter approval in the district.
This provision would not automatically eliminate non-school homestead property taxes. Instead, it would establish a framework for additional action by the Legislature and individual local governments. Whether further relief becomes available, and how much, could eventually vary by jurisdiction.
The proposal would also place limitations on how counties and municipalities use property tax revenue.
What Should Property Owners and Buyers Do Now?
Amendment 3 has not yet been adopted, and no changes will take effect unless the proposal receives at least 60% voter approval in November. Even if it passes, implementing legislation and local decisions will help determine how some provisions operate in practice.
In the meantime, Florida property owners, prospective buyers, and real estate investors should:
- Review whether a property qualifies, or may qualify, for homestead treatment;
- Consider how the December 31, 2026, residency date may affect a planned relocation or purchase;
- Avoid estimating future taxes solely from the seller’s current tax bill;
- Account for possible reassessment following a purchase, ownership change, or improvement; and
- Monitor implementing legislation and local government action if the amendment passes.
Property tax treatment can materially affect the cost of owning Florida real estate. Buyers and owners should evaluate these issues as part of the broader legal and financial analysis of a transaction rather than waiting until after closing.
About the Author
Vanessa M. Bertran is a Partner at Agentis whose practice encompasses a significant range of real estate matters. She represents clients in commercial and residential purchases, sales, refinancings, and closings, as well as sophisticated commercial foreclosure litigation and real estate operational matters. Vanessa also advises clients regarding commercial leases, landlord-tenant disputes, zoning and land use matters, brokerage issues, construction and lien issues, code compliance, and the acquisition and restructuring of distressed real estate assets and loans. She is President of the Attorneys’ Real Estate Council of Miami-Dade County and serves on the Florida Realtor-Attorney Joint Committee and the Florida Bar Real Property, Probate and Trust Law Section’s Uniform Title Standards Revision Committee.
This article is for informational purposes only and does not constitute legal advice. The proposal remains subject to voter approval, and its application may depend on implementing legislation and the facts of a particular matter.
Source Note
This draft reflects the Florida Department of State ballot title and summary and HJR 1F materials available as of August 31, 2026.