# What Florida Amendment 3 Means for Homebuyers

By Frankie Cordero (@frankiecordero) · Published 2026-11-11

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Florida voters passed Amendment 3 with about 62% of the vote on November 3, 2026, raising the homestead property tax exemption to **$150,000 in 2027 and $250,000 in 2028** — and tying the full savings to a residency deadline that could fuel a buying rush before December 31 ([HousingWire](https://www.housingwire.com/articles/florida-amendment-3-cutoff)).

Why it matters now: the amendment only delivers its biggest benefit to owners who are already homesteaded in Florida by Dec. 31, 2026. Buyers who close after that date wait five years for the full exemption, which is why agents expect an accelerated wave of purchases and residency moves through the end of the year. At the same time, the measure cuts roughly $4.95 billion from local non-school property tax revenue in fiscal 2027-28, a squeeze on city and county budgets that could reshape what buyers pay for long after closing ([Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)).

#### Key Takeaways

-   The full $250,000 homestead exemption (2028) requires primary residency in Florida by Dec. 31, 2026; anyone who misses the cutoff waits five years.
-   Buyers may face a faster, more competitive market through year-end as agents predict a rush on properties ahead of the deadline.
-   The $150,000 exemption for 2027 and $250,000 for 2028 apply only to non-school property taxes; school taxes stay unchanged.
-   Local governments lose billions in property tax revenue, which could push millage rates up or services down after the exemption takes effect.

## What Amendment 3 actually changes

Amendment 3 is a constitutional change passed by the Florida Legislature during a June 2026 special session and approved by voters at the November 3, 2026 general election. It raises the homestead exemption for non-school property taxes from roughly $51,411 to **$150,000 in 2027 and $250,000 in 2028**, with inflation adjustments starting in 2029 ([Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)). School district taxes keep their existing $25,000 exemption and are unchanged.

The second, quieter part of the amendment lowers the annual cap on assessment increases for non-homestead property — second homes, rentals and commercial buildings — from 10% to 5% for non-school taxes, also starting in 2027. That means the tax bill on an investment property grows more slowly year over year, but the property is still reassessed at full market value when it changes hands, so a new owner can face a large jump ([Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)).

$4.95Bprojected reduction in local non-school property tax revenue in fiscal 2027-28[Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)

## What it means for prospective homebuyers

The amendment creates a sharp divide between buyers who are already settled in Florida and those who are not. Anyone with a permanent residence in the state before Dec. 31, 2026 gets the full **$150,000 exemption for 2027 and $250,000 for 2028**. Anyone who establishes residency after that deadline is limited to a $50,000 exemption for the first five years, then becomes eligible for the larger break — a penalty that gives the market a clear incentive to move quickly ([HousingWire](https://www.housingwire.com/articles/florida-amendment-3-cutoff)).

That deadline is why agents expect a rush. Compass broker Jason Haber, licensed in both Florida and New York, told HousingWire the approval could give the state's market a "sugar high" through year-end, with buyers "on the fence" pushed to act fast. Local agents echoed the caution: Jeff Lichtenstein of Echo Fine Properties said of a potential buying surge, "I think there will be a mad rush to get in here, because if not, then you're waiting five years" ([WPTV](https://www.wptv.com/money/real-estate-news/amendment-3-could-bring-rush-of-florida-homebuyers-impact-property-values)).

## How property values are likely to move

A 2025 Realtor.com study suggested home values in Florida could rise 7% to 9% if the referendum passed, but the industry is split on that number. Jeff Lichtenstein of Echo Fine Properties pushed back, saying he doesn't see values climbing that high, while Florida Realtors CEO Margy Grant cautioned that home prices are "economically driven" and a supply-and-demand conversation, not a tax policy one ([WPTV](https://www.wptv.com/money/real-estate-news/amendment-3-could-bring-rush-of-florida-homebuyers-impact-property-values)).

The more concrete risk for buyers is on the cost side, not the value side. Because the exemption is a fixed dollar amount, owners of high-value homes save no more than owners of homes assessed just above the exemption — and the benefit stops growing once a home's assessed value passes it. A home assessed at $4 million saves the same dollar amount as one assessed at $400,000 ([Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)).

## The budget squeeze that could follow

Raising the exemption shrinks the tax base that funds local services, and the state's Revenue Estimating Conference projects the change will cut local non-school property tax revenue by about **$4.95 billion in fiscal year 2027-28**, rising to roughly $11.86 billion a year once fully phased in ([Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)). Counties and municipalities must now build their 2027-28 budgets on a smaller base, and a law signed in June, SB 4-F, caps most rate increases — going above the rolled-back rate requires a two-thirds vote of the governing body.

The Tax Foundation warns of a structural trade-off: property taxes finance public safety, infrastructure and other services that make neighborhoods desirable and hold up property values, so cutting that revenue can, over time, pressure the very amenities buyers pay a premium for. For a prospective homebuyer, the practical takeaway is to look past the headline savings and ask how your new community plans to cover its local services once the exemption bites ([Tax Foundation](https://taxfoundation.org/research/all/state/florida-amendment-3-homestead-property-tax-exemption)).

## What buyers should do now

If you're weighing a move to Florida, the December 31 deadline is the single most important date on the calendar. Buyers who close and establish primary residency by then lock in the full $250,000 exemption by 2028; anyone who delays waits five years at the $50,000 level. The amendment ties the exemption to a permanent residence, and a former home state can challenge a residency claim, so document your move with a driver's license, voter registration and a declaration of domicile ([Kaufman Rossin](https://kaufmanrossin.com/blog/florida-amendment-3)).

Talk to a local agent about whether a fast close is realistic in your market — as one Palm Beach Gardens broker put it, if the rush happens "it will happen fast" ([WPTV](https://www.wptv.com/money/real-estate-news/amendment-3-could-bring-rush-of-florida-homebuyers-impact-property-values)). And model the actual post-closing tax bill at your price point, not the theoretical maximum, since the savings are capped and depend on your county's millage rate.