On November 3, 2026, Florida voters approved Amendment 3, one of the most significant property tax changes the state has seen in years. Starting with the 2027 tax year, homesteaded owners get a much larger exemption from non-school property taxes, and owners of rentals, second homes and commercial property get a tighter cap on how fast their assessments can rise.
School taxes do not change. Here is a clear breakdown for homeowners, investors and the Realtor and MLO partners who advise them.
The key numbers
2027: Non-school homestead exemption rises to $150,000.
2028 and beyond: Non-school homestead exemption rises to $250,000, indexed to inflation.
School taxes: Unchanged.
Non-homestead properties: Annual assessment cap drops from 10% to 5% (non-school taxes).
Deadline to watch: Homeowners should have homestead in place by December 31, 2026.
What it means for homeowners
Most Florida homesteads already receive roughly $50,000 in exemptions today. Only the increase above that amount is new savings. For a $500,000 homesteaded home, estimated non-school tax savings look like this:
County (avg. non-school mills) | 2027 / yr | 2028+ / yr | 2028+ / mo |
|---|---|---|---|
Miami-Dade (11.74) | $1,174 | $2,348 | $196 |
Broward (13.72) | $1,372 | $2,744 | $229 |
Palm Beach (11.40) | $1,140 | $2,280 | $190 |
Orange (15.25) | $1,525 | $3,050 | $254 |
A lower property tax bill can mean a lower escrow payment, which matters for affordability conversations with buyers.
What it means for investors
Rentals, second homes and commercial properties do not qualify for the homestead exemption. Instead, Amendment 3 cuts the annual cap on assessed value for non-school taxes from 10% to 5%, effective January 1, 2027. First tax bills reflecting the change arrive in November 2027.
Resets on sale: A buyer starts at market value.
School taxes: Still assessed on full market value.
Homestead exemption: Not available.
Example: a $500,000 rental in Miami-Dade with market value rising 8% per year at 11.74 average non-school mills.
Year | Assessed at 10% cap | Assessed at 5% cap | Tax saved / yr |
|---|---|---|---|
2027 | $540,000 | $525,000 | $176 |
2028 | $583,200 | $551,250 | $375 |
2029 | $629,856 | $578,812 | $599 |
2030 | $680,244 | $607,753 | $851 |
2031 | $734,664 | $638,141 | $1,133 |
5-year total | $3,135 |
The gap widens every year the market outpaces 5%. In flat markets, the cap does not come into play. For investors, steadier property taxes can mean more predictable cash flow on DSCR-qualified properties.
How partners can use this
Remind buyers closing before year-end to file for homestead by December 31, 2026.
Bring estimated tax savings into affordability and escrow conversations.
Talk with investor clients about how a 5% cap may affect long-term holding costs.
Get your exact number
Run an estimate for any of Florida's 67 counties and any home value in about 30 seconds at taglendinggroup.com/florida-amendment-3. Working with investors? Learn about DSCR, LLC closings, 2–8 units and foreign national programs at taglendinggroup.com/dscr, or call 305-503-8655.
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TAG Lending Group, LLC | NMLS #2329372 | Equal Housing Lender | Lender in FL, SC, TN, TX, GA, MI, NM, OH; broker only in CT, PA, NJ. Estimates and examples are illustrative only and are not tax or legal advice. County averages: Florida TaxWatch (2025). City and district rates vary; confirm with your county property appraiser. Investor example assumes assessed value equals market value at start, no sale or improvements, and flat millage. Not a commitment to lend.
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