Good News, Floridians! Amendment 3 Passes!

What Does This Mean for Homeowners and Florida's Housing Market?

While Florida homeowners have started receiving their property tax bills, most have a reason to celebrate, following the approval of Amendment 3!

On November 3, 2026, Florida voters approved a constitutional amendment that significantly expands the state's homestead property tax exemption and introduces additional changes affecting residential, investment, and commercial properties.

With approximately 62% of voters supporting the amendment, Florida has approved one of its most significant property tax reforms in years.

But what does this really mean for homeowners? How much money could you save? And could this change the direction of Florida's housing market?

Let's break it down.

1. What Is Amendment 3?

Amendment 3 changes how Florida calculates property taxes on qualifying primary residences by substantially increasing the homestead exemption for property taxes levied by counties, municipalities, and certain other local taxing authorities.

Here's what's changing:

2026: The existing homestead exemption structure remains in place.

2027: The non-school homestead exemption increases to $150,000.

2028: The exemption increases to $250,000.

2029 and beyond: The increased exemption will be adjusted for inflation.

Importantly, the expanded exemption does not apply to school district property taxes. So, to clarify, Amendment 3 will not impact the portion of property taxes earmarked for public schools.

The changes take immediate effect January 1, 2027.

2. How Much Could Florida Homeowners Save?

Potentially, homeowners will save thousands of dollars annually, depending on the property's assessed value, applicable exemptions, local millage rates, and homeowner eligibility.

Consider a simplified example of a qualifying Florida homeowner whose property has an assessed value of $350,000.

Under the previous system, the homeowner generally received the standard homestead exemption, including an additional exemption applicable to non-school taxes.

Beginning in 2028, the expanded exemption could exclude up to $250,000 of the property's assessed value from non-school property taxes.

For example, if a home is assessed at $350,000 and receive the full current Homestead Exemption, by 2028, the expanded exemption would be $250,000 of the property's assessed value from non-school property taxes, meaning the county would tax on the remaining $100,000.

Assuming a combined non-school property tax rate of 10 mills (1%), this example produces approximately $2,500 in annual non-school property taxes before other adjustments.

Under the previous exemption structure, the comparable non-school tax would have been approximately $3,000.

Estimated annual savings: $500.

Actual savings may be higher or lower depending on the property's assessed value, existing exemptions, and local tax rates.

For homeowners living on fixed incomes, retirees, and families struggling with rising insurance premiums and living expenses, even moderate annual savings can make a meaningful difference.

3. Not Every Homeowner Will Receive the Same Benefits

One important provision deserves special attention. The expanded homestead exemption generally benefits homeowners who qualify as Florida permanent residents by December 31, 2026.

Newer residents face different eligibility requirements.

Homeowners establishing Florida residency after that date generally must wait until their fifth year of receiving the homestead exemption before qualifying for the expanded benefit, subject to applicable constitutional protections.

That distinction could influence decisions for people considering relocating to Florida or purchasing a primary residence in the coming years.

Additionally, second homes, vacation homes, and investment properties do not qualify for the expanded homestead exemption simply because their owners live in Florida.

4. What About Investment Properties and Vacation Homes?

Amendment 3 contains another important provision that could benefit owners of non-homestead properties. Currently, annual increases in assessed value for many non-homestead properties are generally capped at 10%, excluding school district taxes.

Under Amendment 3, that annual assessment increase cap decreases to 5%.

This provision affects qualifying non-homestead properties, including:

• Long-term rental properties

• Vacation and short-term rental homes

• Second homes

• Commercial real estate

This does not automatically reduce an investor's existing tax bill. Instead, it limits how quickly certain assessed values can increase from one year to the next. For investors with multiple properties, this could provide greater predictability when calculating long-term operating expenses, cash flow, and investment returns.

5. Could Amendment 3 Stimulate Florida's Housing Market?

Potentially, Amendment 3 could stimulate Florida's housing market, but the impact will depend on several factors.

Florida's housing market has faced affordability challenges, including higher mortgage interest rates, rising homeowners insurance premiums, HOA assessments, and property taxes. By reducing property taxes for eligible homeowners, Amendment 3 could improve the overall cost of homeownership.

For buyers: Lower projected property taxes could improve monthly affordability and, in some cases, mortgage qualification. However, newly relocating buyers may not immediately qualify for the expanded exemption.

For sellers: Reduced ownership expenses could make certain properties more attractive, particularly to buyers who already qualify for Florida's homestead benefits.

For existing homeowners: Lower carrying costs could make remaining in their homes more affordable, particularly for retirees and households on fixed incomes.

For investors: A lower assessment-growth cap could make future property tax expenses more predictable, potentially improving long-term investment planning.

However, lower property taxes alone do not guarantee higher property values, increased buyer demand, or a surge in home sales. Mortgage rates, insurance costs, housing inventory, employment, and local market conditions will continue to play major roles.

6. Could There Be a Downside?

While the amendment provides potential financial relief for property owners, there are also important considerations for local communities.

Property taxes help fund essential services, including public safety, infrastructure, and local government operations. Reducing taxable property values could mean less revenue for counties and municipalities.

While local sheriffs came out against Amendment 3, claiming the reduction would impact local services, proponents, along with Governor Ron DeSantis argued that many local governments require a budgetary diet and need to cut wasteful spending to become more fiscally responsible rather than relying so heavily upon homeowners to fund their budgets. The two-term Governor never received a raise and led the charge to move Florida from a tight budget to a strong, fiscally conservative budget with a substantial "rainy day" reserve fund over the course of his terms.

Proponents of the Amendment learned that his $140,000 salary cast a shadow on many sheriffs and school superintendents making well over $350,000 per year salaries, further justifying the Governor's position of counties re-examining budgetary priorities.

Furthermore, supporters believe property tax relief will make Florida more affordable and encourage economic activity. Critics have raised concerns about potential reductions in local government funding and the ability to maintain public services.

Amendment 3 also restricts how counties and municipalities may use property tax revenues, identifying specific permitted purposes. How local governments adjust their budgets will be an important development to watch.

7. What Should Florida Homeowners Do Now?

Although the changes begin in 2027, homeowners should take several steps to understand how the amendment may affect their property by first, verifying your homestead exemption. Confirm that your primary residence has the appropriate exemption through your county property appraiser.

Second, review your assessed value. Your property's assessed value is not necessarily the same as its current market value. Evaluate potential savings. Review the non-school millage rates on your tax bill to estimate how the expanded exemption may affect you.

Third, consider your future plans. If you're thinking about buying, selling, downsizing, or relocating, evaluate the financial implications before making a decision. It is important to speak with a knowledgeable real estate professional. Property taxes are only one component of the overall cost of owning real estate. Understanding the complete financial picture is essential.

The Bottom Line: A New Chapter for Florida Real Estate

Amendment 3 represents a significant change in Florida's property tax structure. For many qualifying homeowners, the expanded homestead exemption could translate into meaningful savings beginning in 2027, with additional relief in 2028 and beyond.

For investors, the reduced assessment-growth cap offers another potential advantage. And for Florida's housing market, the changes introduce an important new factor into the affordability equation.

But remember: Lower property taxes don't automatically mean a lower total cost of homeownership. Insurance premiums, mortgage financing, HOA assessments, maintenance expenses, and local market conditions must all be considered.

Fortunately, also to Governor Ron DeSantis' and his administration's credit, insurance premiums are coming down, adding to lowering the cost of homeownership.

Thinking About Buying, Selling, or Investing in Florida Real Estate?

At Odyssey Real Estate Services, we believe informed decisions create better outcomes.

Whether you're evaluating your home's value, considering a move, or exploring investment opportunities, our experienced real estate Advisors can help you understand today's changing market and identify opportunities aligned with your goals.

Contact us, TODAY, to learn more about your options and how we can assist you with saving money on buying or selling your home.

Call: 321.804.8300 or text 407.515.7230

Email: leo@odysseyflorida.com

Website: www.odysseyflorida.com

Disclaimer: This article is intended for general educational purposes and does not constitute legal, tax, or financial advice. Actual property tax savings depend on individual circumstances, local taxing authorities, eligibility requirements, and implementation of the constitutional amendment. Consult your county property appraiser or a qualified tax professional for property-specific guidance.