Florida homeowners may soon see the biggest property tax change in a generation. Amendment 3 on the November 2026 ballot would raise the homestead exemption from $50,000 to $250,000 for non-school taxes, potentially eliminating the non-school portion of property tax bills for roughly 60% of homesteaded homeowners. But the proposal comes with a 5-year residency requirement for new residents, a carve-out that keeps school taxes untouched, and a projected $12 billion recurring revenue loss for local governments that could shift costs onto renters and businesses. Here is what every Florida homeowner and real estate agent needs to understand before casting a vote.
The Breakdown: What Amendment 3 Actually Does
Amendment 3 touches four distinct parts of Florida's property tax code. Here is how each one works.
The homestead exemption increase. The non-school homestead exemption — the portion that shields your home's assessed value from county, municipal, and special-district taxes — jumps to $150,000 in 2027 and $250,000 in 2028. Starting in 2029, it adjusts annually with inflation. School district taxes (roughly 40% of the average tax bill) are carved out entirely — those stay at the current $25,000 exemption (Florida TaxWatch).
The 5-year residency rule. This is the provision most new arrivals will miss. Anyone who is not a Florida permanent resident by December 31, 2026, receives only the current $50,000 exemption for their first five years of homestead eligibility. Only after that fifth year do they qualify for the full $250,000. Local governments can shorten that wait after 2030 for a critical need, but there is no shortcut before then (Orange County).
The non-homestead assessment cap drops. Properties that do not qualify for a homestead exemption — rental homes, second homes, and commercial real estate — currently see their annual assessed value capped at 10% growth. Amendment 3 cuts that cap to 5%, a provision that benefits investors and business property owners (Orange County).
The spending restriction. Counties and municipalities would be required to use remaining property tax revenue solely for a defined list of core services: public safety, education and schools, infrastructure, natural resources, bond debt service, retirement benefits for employees, and operations and administration. Other expenditures would require approval by county officers or the governing body (Florida Chamber of Commerce).
How Much Would Homeowners Save?
What Is Amendment 3?
Amendment 3 is a proposed constitutional amendment placed on the November 2026 ballot by the Florida Legislature through House Joint Resolution 1-F, passed during a special session on property taxes called by Governor Ron DeSantis (Florida Chamber of Commerce). If approved by at least 60% of voters, it would make four major changes to Florida's property tax system: raise the homestead exemption on non-school taxes, lower the assessment cap on non-homestead properties, impose new residency requirements for the expanded exemption, and restrict how counties and municipalities spend property tax revenue.
What the Exemption Does NOT Cover
Three important carve-outs prevent the amendment from being a blanket tax cut.
Non-ad valorem assessments survive. Solid waste fees, stormwater fees, community development district (CDD) bonds, and special assessments are not property taxes — they are flat charges unaffected by the exemption. In some newer communities these run $2,000–$4,000 per year.
Renters and second-home owners see no direct benefit. The exemption is homestead-only. Rental properties, vacation homes, and commercial real estate get the reduced 5% assessment cap but no exemption increase. The Tax Foundation warns that this may shift the property tax burden onto renters and small businesses as localities look to replace lost revenue (Florida Policy Institute).
Compared with today's $50,000 exemption, the 2028 exemption shields an additional $200,000 of assessed value from non-school taxes (PropertyExemption.com). Using the average non-school tax rate of $10.50 per $1,000, homes assessed above $250,000 would save roughly $1,035 in 2027 and $2,085 in 2028 (Florida TaxWatch). Actual savings vary by county — Broward and Miami-Dade appraisers estimate $1,500–$1,800 per year, while a $500,000 Hillsborough County home could save about $209 per month (WTXL).
Who would pay nothing at all? The Governor's office estimates that at $250,000, about 60% of homesteaded Florida homeowners would owe zero non-school property tax (PropertyExemption.com). This is feasible because the Save Our Homes cap has limited assessed-value growth to 3% per year since 1995, creating wide gaps between market values and assessed values. The median homesteaded property in Florida has an assessed value near $200,000 — well below the proposed $250,000 exemption.
The $12 Billion Question: What Happens to Local Services?
State economists estimate Amendment 3 would reduce local property tax revenue by nearly $12 billion on a recurring basis (Florida TaxWatch). Florida TaxWatch puts the five-year total at roughly $45.8 billion (WTXL). These are not hypothetical paper cuts — property taxes are the largest single revenue source for nearly half of Florida's counties.
The amendment does not include any new state funding to replace the lost revenue, so local governments would face hard choices: cut services, raise millage rates on remaining taxable properties, or impose new fees. The amendment restricts county and municipal property tax revenue to a defined list of core services — public safety, education, infrastructure, natural resources, bond debt service, retirement benefits, and operations — but does not cap what local governments can charge in fees for parks, libraries, wastewater, or impact fees (Florida TaxWatch).
Have questions about how Amendment 3 could affect your property tax bill — or your next home purchase? Reach out anytime. I am happy to talk through your specific situation.
Meredith Medvec | Mortgage Consultant | NMLS# 1020414 Prosperity Home Mortgage, LLC.
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