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Florida Amendment 3: How It Could Save Florida Homeowners Thousands in Property Taxes
Property taxes have become a major concern for Florida homeowners, especially as home values have increased over the past several years.
This November, Florida voters will decide Amendment 3, a proposed constitutional amendment that could significantly reduce the amount of a homesteaded property that is subject to non-school property taxes.
For many Florida homeowners, the savings could be substantial.
Amendment 3 is officially on the 2026 ballot and would need at least 60% voter approval to pass. If approved, it would take effect January 1, 2027.
What Would Amendment 3 Actually Do?
The biggest change is an increase in the homestead exemption for taxes other than school-district taxes.
For qualifying Florida residents who maintain permanent Florida residency by December 31, 2026, the exemption would increase to:
$150,000 beginning in 2027
and then:
$250,000 beginning in 2028
Beginning in 2029, the $250,000 amount would also be adjusted upward for inflation when inflation is positive. Florida Senate
That is a major increase from the current system.
For 2026, Florida homeowners can receive a $25,000 homestead exemption that applies to all property taxes, plus an additional inflation-adjusted exemption of $26,411 that applies to non-school property taxes. Florida Department of Revenue
Why This Could Matter So Much to Homeowners
Property taxes are based on taxable value.
Generally speaking, the lower your taxable value, the lower the property-tax bill.
Amendment 3 would shelter a much larger portion of a qualifying homeowner's assessed value from county, city and certain other non-school property taxes.
That means more of the home's value could effectively be removed from the calculation used to determine those taxes.
A Simple Example
Let's say a homeowner has a property with an assessed value of:
$250,000
For illustration purposes, assume the combined non-school property-tax rate is 10 mills.
One mill equals $1 in tax for every $1,000 of taxable value.
Under today's system, only about $51,000 of assessed value is sheltered by the standard homestead exemptions from non-school taxes.
That leaves roughly:
$198,000 subject to those taxes
At a 10-mill rate, that would be roughly:
$1,980 per year
in non-school ad valorem taxes.
Under Amendment 3, once the $250,000 exemption is fully implemented in 2028, a qualifying homestead with a $250,000 assessed value could potentially have none of that assessed value subject to non-school ad valorem taxes.
That could mean savings approaching:
Nearly $2,000 Per Year
in this simplified example.
The exact amount would vary based on the homeowner's assessed value, millage rates, taxing districts and other exemptions.
School taxes and certain assessments would still remain.
What About a Home Assessed at $400,000?
Now consider a homeowner with a $400,000 assessed value.
Under the proposed 2028 exemption, the first:
$250,00 could be exempt from non-school property taxes.
That would leave approximately:
$150,000 subject to those taxes.
At a hypothetical 10-mill non-school tax rate, that would equal approximately:
$1,500 per yearon that portion of the tax bill.
Without the larger exemption, a much greater amount of the property's assessed value would remain taxable.
That is why the potential savings can become significant very quickly.
Remember: Assessed Value Is Not the Same as Market Value
This is an important distinction for Florida homeowners.
Your home's market value is what the property may reasonably sell for.
Your assessed value is the value used by the property appraiser for tax purposes.
Because Florida's Save Our Homes rules generally limit annual assessment increases on homesteaded property, longtime homeowners may have assessed values that are significantly lower than their home's current market value.
So if your home is worth $450,000 on the open market, that does not necessarily mean your assessed value is $450,000.
Your property-tax bill or TRIM notice will show your actual assessed value.
Amendment 3 Also Changes Rules for Non-Homestead Property
The proposal is not limited entirely to primary residences.
Florida currently limits annual assessment increases on many non-homestead properties to 10%.
Amendment 3 would lower that cap to: 5% per year beginning in 2027. Florida Senate
That could be important for owners of:
Investment properties
Rental homes
Second homes
Commercial property
Other non-homestead real estate
It would not prevent reassessment when certain ownership changes occur, but it would reduce the normal annual assessment-growth cap.
There Is a Different Rule for New Florida Residents
One detail that homeowners and people moving to Florida should understand is that the larger exemption would not immediately apply in the same way to everyone.
Someone who establishes Florida residency on or after January 1, 2027 would initially qualify for an exemption of up to $50,000 from non-school property taxes.
Under the proposal, that homeowner generally would become eligible for the larger exemption beginning with the fifth year of receiving the homestead exemption. Florida Senate
So the amendment would provide a larger immediate benefit to existing Florida residents than to people who establish residency after the end of 2026.
Could the Exemption Eventually Become Even Larger?
Potentially.
Amendment 3 would require the Florida Legislature to create a uniform process allowing counties and municipalities to increase the homestead exemption for their own tax levies.
Special districts could also increase their exemption through voter approval. Florida Senate
That means the $250,000 exemption could potentially be only part of the longer-term property-tax picture.
What Would Amendment 3 Not Eliminate?
This is important.
Amendment 3 would not eliminate every charge on a Florida property-tax bill.
It applies to non-school ad valorem property taxes.
Homeowners could still pay:
School-district property taxes
Special assessments
Non-ad valorem assessments
Certain other charges that appear on a property-tax bill
So homeowners should not assume a $250,000 exemption means they will receive a zero-dollar tax bill.
The savings would apply specifically to the portions of the tax bill covered by the amendment.
What Is the Potential Impact on Local Governments?
The homeowner savings would also mean less property-tax revenue collected by local governments.
Florida legislative estimates project that, if approved, the amendment could reduce local non-school property-tax revenue by approximately:
$4.95 billion in fiscal year 2027-28
and approximately:
$8.78 billion in fiscal year 2028-29
with a larger recurring impact in later years. Florida House of Representatives
Amendment 3 also limits the purposes for which county and municipal property-tax revenue may be used, including areas such as public safety, infrastructure, education, natural resources, debt obligations, retirement benefits and government operations. Florida Senate
How individual counties and cities respond to reduced property-tax revenue would ultimately depend on future budgets and local decisions.
That is one of the major considerations voters should weigh along with the potential homeowner savings.
How Much Could This Mean Over Time?
Even relatively modest annual savings can add up quickly.
If a homeowner saved:
$1,000 per year
that equals:
$5,000 over five years
and:
$10,000 over ten years
If the savings were:
$2,000 per year
that becomes:
$10,000 over five years
and:
$20,000 over ten years
Actual tax savings could rise or fall over time depending on assessments, millage rates, exemptions and local tax policy.
But Amendment 3 could create a meaningful reduction in the long-term cost of homeownership for many qualifying Florida residents.
How Can You Estimate Your Own Potential Savings?
The easiest place to start is your latest property-tax bill or TRIM notice.
Look for:
1. Your assessed value
2. Your taxable value
3. Your homestead exemption
4. Your non-school millage rates
Those numbers can give you a much better idea of how a larger exemption could affect your particular property.
The Bottom Line
Florida Amendment 3 is one of the most significant proposed changes to Florida's homestead property-tax structure in years.
For qualifying existing Florida homeowners, it would increase the homestead exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028.
For some homeowners, that could mean hundreds or potentially thousands of dollars in annual property-tax savings.
At the same time, voters should also consider the projected reduction in local-government property-tax revenue and how communities could respond to that change.
Property taxes are one of the largest ongoing expenses associated with owning a home, so understanding exactly what this amendment could mean for your property is worth the time before heading to the polls.
If you have questions about your home's assessed value, market value, homestead exemption or how Florida property taxes can affect buying or selling a home, feel free to reach out.
Randy Barnes
RE/MAX Premier Realty
352-817-0578
This article is for general informational purposes only and is not intended as legal, tax or financial advice. Property-tax rules and savings vary by homeowner and taxing jurisdiction. Consult your county property appraiser, tax collector or qualified tax professional for information specific to your property.
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