Florida voters approved Amendment 3 on November 3, setting a new homestead property tax exemption that will shield more home value from non-school taxes. The exemption increases from the current $50,000 to $150,000 in 2027, then to $250,000 in 2028. Starting in 2029, the amount will rise with inflation.
The benefit applies only to non-school property taxes. School property taxes remain under the existing $25,000 homestead exemption. The exemption covers only your primary residence if you own multiple homes in Florida.
Timing matters for eligibility. Homeowners with a permanent Florida residence by December 31, 2026, who qualify for the homestead exemption can receive the larger benefit as it phases in. Those establishing Florida residency after that date must wait longer. They'll receive the existing $50,000 exemption initially, adjusted for inflation beginning in 2028, and become eligible for the larger exemption in their fifth year of receiving it. Starting in 2030, counties and municipalities can vote to shorten that waiting period.
Amendment 3 also lowers the annual assessment cap for non-homestead properties, including many rentals, second homes, and commercial buildings, from 10% to 5% beginning in 2027.
Florida's Revenue Estimating Impact Conference projects the amendment could cut local property tax revenue by nearly $5 billion in 2027-28, rising to $8.8 billion the next year and nearly $11.9 billion by 2031-32. Local governments depend on property taxes for police and fire protection, emergency medical services, road repairs, drainage, parks, and libraries.
The amendment requires the Florida Legislature to establish a process allowing counties and municipalities to increase the homestead exemption for their own property tax levies. In some cases, this could eventually mean exempting the full assessed value of a qualifying home.
The first changes take effect January 1, 2027.