Florida voters will decide on significant changes to the state’s homestead property tax exemptions in the November 3, 2026, general election. Proposed Amendment 3 would increase exemptions for qualifying homeowners, Florida voters will decide on significant changes to the state’s homestead property tax exemptions in the November 3, 2026, general election. Proposed Amendment 3 would increase exemptions for qualifying homeowners, establish new residency requirements for certain individuals moving to Florida, and reduce the annual assessment cap on non-homestead properties.

If approved by at least 60% of voters, the amendment would take effect January 1, 2027. For current homeowners, prospective Florida residents, and real estate investors, understanding the proposed changes now could help inform important financial and tax-planning decisions.

Key Proposed Changes Under Amendment 3

The proposed amendment introduces several changes that could affect property tax benefits, residency requirements, and existing protections for Florida property owners. Key provisions include:

• Larger homestead exemptions: The exemption for non-school property taxes would increase to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029.
• New residency requirements: Certain individuals who are not Florida residents on December 31, 2026, would generally wait until their fifth year of qualifying for a homestead exemption to receive the enhanced benefit.
• Lower non-homestead assessment cap: The annual assessment cap for certain non-homestead properties would decrease from 10% to 5% for non-school levies
• Existing protections remain: Save Our Homes, portability, constitutional creditor protection, and homestead inheritance restrictions would remain unchanged.
• Limits on local spending: Counties and municipalities could use property tax revenue only for purposes listed in the amendment.

How Would Amendment 3 Change Florida’s Homestead Exemption?

One of the amendment’s most significant provisions is increasing the homestead exemption for property taxes other than school district levies.

Currently, qualifying homeowners may receive up to approximately $51,400 in homestead exemptions for non-school property taxes in 2026, because a portion of the current exemption is adjusted annually for inflation. Amendment 3 would increase that amount to:

• $150,000 beginning January 1, 2027
• $250,000 beginning January 1, 2028
• Inflation-adjusted amounts beginning in 2029

The existing $25,000 exemption for school district property taxes would remain unchanged.

These increases could substantially reduce the taxable value of qualifying homestead properties. However, they would not eliminate property taxes entirely. Actual savings would depend on a property’s assessed value, applicable tax rates, and other local factors. Because the exemption is a fixed dollar amount, savings would stop growing once a home’s assessed value exceeds it. Local governments could also raise millage rates to offset lost revenue, and non-ad valorem assessments, such as many fire, stormwater, and solid waste fees, would not be reduced by the higher exemptions.

The amendment would also establish a process for counties and municipalities to increase homestead exemptions for their respective levies, potentially up to the property’s full assessed value. With voter approval, special districts could provide additional exemptions. As a result, the financial impact could vary depending on where a homeowner lives.

Why December 31, 2026, Matters for Florida Residency

For individuals considering a move to Florida, the timing of their residency could directly affect future property tax benefits. Under Amendment 3, individuals who are not Florida residents on December 31, 2026, would initially receive a $50,000 exemption for non-school property taxes, adjusted for inflation beginning in 2028, rather than the proposed enhanced amount. They would generally become eligible for the increased exemption beginning in their fifth year of qualifying for homestead benefits. Beginning in 2030, a county or municipality could shorten this five-year waiting period by a two-thirds vote of its governing body if it finds a critical local need.

This distinction could create different tax outcomes for individuals who establish Florida residency before the end of 2026 compared with those who relocate afterward. If you’re considering moving to Florida, now may be an important time to evaluate your residency plans. Establishing residency involves more than purchasing property or obtaining a Florida driver’s license. Individual circumstances, intent, and supporting documentation can all affect how residency is determined. Individuals relocating from higher-tax states should also expect their former state to scrutinize a change in domicile for income tax purposes, so a well-documented move matters as much as its timing. Keep in mind, too, that the amendment requires at least 60% voter approval and may not pass.

The proposed requirements may also raise questions for former Florida residents returning to the state or individuals with temporary absences. Additional legislative or administrative guidance may be necessary to clarify how these situations will be treated. Before deciding to relocate, consider how your residency timeline could affect your eligibility for the proposed tax benefits.

What Happens to Existing Homestead Protections?

Amendment 3 would leave several existing homestead protections unchanged, including Florida’s Save Our Homes provision, which generally limits annual increases in assessed value to 3% or inflation, whichever is lower. Homeowners would also retain portability benefits that may allow accumulated assessment savings to transfer to another qualifying Florida homestead.

The amendment would not affect constitutional creditor protections or restrictions on transferring or inheriting homestead property, particularly when a surviving spouse or minor child is involved. These distinctions remain important for estate planning, as different requirements govern homestead property tax benefits and constitutional protections.

How Would Non-Homestead Properties Be Affected?

Beginning January 1, 2027, Amendment 3 would reduce the annual assessment cap for certain non-homestead properties from 10% to 5% for non-school levies. This could benefit owners of rental properties, second homes, investment properties, and commercial real estate by limiting annual increases in assessed value. Reassessment to full market value upon a change of ownership or control would continue.

However, the 5% limitation would apply to assessed value, not the final property tax bill. Changes in millage rates and other factors could still increase taxes by more than 5%.%. School district taxes on non-homestead property would also remain uncapped and based on full market value.  Property owners should consider how this change could affect future tax obligations, operating costs, and long-term investment decisions.

Beyond property assessments, Amendment 3 would also restrict how counties and municipalities use property tax revenue, generally limiting expenditures to designated purposes such as public safety, education, infrastructure, debt service, and government operations. These provisions could influence local budgeting decisions and future property tax policies.

Planning Ahead for Potential Homestead Changes

If approved, Amendment 3 could significantly affect property tax planning for Florida homeowners, prospective residents, and real estate investors. With the December 31, 2026, residency date approaching, understanding the proposed changes can help you evaluate potential tax benefits and plan accordingly.

Because the amendment has not yet been approved, its provisions remain subject to change, and any future implementing legislation could affect how they apply. The information outlined here is based on the proposed amendment language and is intended for general educational purposes rather than individualized tax or legal advice.

CRI's tax and advisory professionals can help you assess how the proposed changes may affect your residency plans, property holdings, and tax strategy. Contact your CRI advisor to discuss your options and prepare for potential changes to Florida's property tax landscape.