Florida Amendment 3 Explained: Property Taxes, Homestead and the December 31 Deadline
Florida Amendment 3 Could Change Property Taxes in 2027. Here’s What Homeowners and Future Florida Residents Should Know
Florida property taxes are once again at the center of a major statewide debate.
This November, Florida voters will decide Amendment 3, a proposed constitutional amendment that could significantly change how homestead and non-homestead properties are taxed beginning in 2027.
For current homeowners, future Florida residents, investors and anyone considering a move to the state, this is more than a ballot issue. It could affect the long-term cost of owning property in Florida. And one date deserves particular attention:
December 31, 2026.
What Amendment 3 Would Change
If approved by at least 60% of Florida voters, Amendment 3 would increase the homestead exemption that applies to non-school property taxes. For qualifying Florida residents, the exemption would rise to:
- $150,000 in 2027
- $250,000 in 2028
- Inflation-adjusted increases beginning in 2029
The expanded exemption would apply only to non-school property taxes, so school-district property taxes would not be reduced by this change. That distinction matters because a Florida property-tax bill is made up of multiple taxing authorities. The amendment would reduce the taxable value used for certain county, municipal and other non-school levies, but not for school-board taxes.
Why December 31, 2026 Matters
This may be the most important part of the amendment for people considering a move to Florida. Under the proposal, people who maintain permanent Florida residence by December 31, 2026 and establish a homestead would qualify for the expanded exemption schedule.
People who establish Florida permanent residency on or after January 1, 2027 would initially receive the lower exemption and would become eligible for the expanded exemption beginning with their fifth year, subject to constitutional requirements.
But this is not simply a “buy a home by December 31” rule. Florida homestead eligibility generally depends on factors such as ownership, whether the property is genuinely being used as a permanent Florida residence, and the owner’s status at the relevant tax date.
Someone who purchases a home in December but continues to live permanently in another state may not be in the same position as someone who has actually established Florida residency.
That is why buyers considering a year-end move should confirm their individual situation with the county property appraiser and, when appropriate, a tax or legal professional before making a decision based on the deadline.
Amendment 3 Actually Contains Two Different Property-Tax Changes
This is where the proposal can become confusing, because it affects homestead and non-homestead properties differently.
For homestead properties
A homestead property is generally the home you own and use as your permanent Florida residence. For qualifying homestead owners, Amendment 3 would increase the amount of assessed value exempt from certain non-school property taxes. In simple terms, more of the home’s taxable value could be shielded from those taxes.
For non-homestead properties
Non-homestead property generally means property that does not qualify as the owner’s permanent Florida residence for homestead purposes. That can include:
- Rental homes
- Vacation or second homes
- Commercial real estate
- Other residential or business property that does not receive homestead exemption
These properties would not receive the expanded homestead exemption. Instead, Amendment 3 would reduce the annual cap on increases in assessed value for applicable non-homestead property from 10% to 5%.
That is a completely different form of relief. A qualifying primary residence could receive a larger exemption from taxable value. A qualifying non-homestead property could instead receive a tighter limit on how quickly its assessed value can rise from one year to the next. That lower cap may make future tax assessments more predictable for owners of rental, second-home and commercial properties. It does not mean their total property-tax bill can increase by only 5%, because millage rates and other factors can also change.
What Could This Mean for Current Florida Homeowners?
For qualifying homeowners, the most obvious potential benefit is a lower property-tax bill. Increasing the homestead exemption means a smaller portion of the property’s assessed value would be subject to certain non-school taxes. How much a homeowner could save would depend on factors including:
- The home’s assessed value
- Local millage rates
- Existing homestead benefits
- Save Our Homes limitations
- The taxing authorities in that area
So a larger statewide exemption does not translate into the same dollar savings for every homeowner.
What Could This Mean for Rental and Second Home Owners?
For rental properties, second homes and commercial real estate, the proposal works differently. These properties are generally not eligible for homestead exemption because they are not the owner’s permanent Florida residence. Instead, the potential benefit is the reduction in the annual assessment-growth cap from 10% to 5%.
For an investor or second-home owner, that could make increases in assessed value more gradual and easier to plan for over time. That matters because property taxes are based in part on assessed value. A slower increase in assessed value can create more predictability, although it does not guarantee a fixed or lower tax bill.
Why Florida Realtors Supports Amendment 3
Florida Realtors’ Board of Directors voted to support Amendment 3. The association’s position is that housing affordability should not be measured only by the cost of buying a home. The ongoing cost of ownership matters too.
Florida homeowners have faced rising expenses in areas such as insurance, property taxes, utilities and general household costs. Florida Realtors argues that increasing the homestead exemption could help reduce at least part of that ongoing burden.
Why Is There Opposition to Amendment 3?
The case in favor of Amendment 3 is straightforward: supporters believe homeowners need meaningful property-tax relief. The concern on the other side is also important to understand. Property taxes are one of the main ways local governments pay for services residents use every day, including:
- Police and sheriff services
- Fire rescue and emergency medical services
- Roads and infrastructure
- Stormwater and drainage systems
- Parks and recreation
- Other local government operations
If more property value becomes exempt from taxation, or if assessed values are allowed to increase more slowly, cities and counties may collect less revenue than they otherwise would have. Critics worry that this could create pressure on local budgets. In practical terms, local governments could eventually face choices such as reducing spending, delaying projects, increasing certain fees, or finding revenue elsewhere.
Supporters, on the other hand, argue that homeowners need stronger protection from rising property-tax burdens and that local governments should be able to adapt. So the debate is not simply “lower taxes versus higher taxes.” It is really a question of balance:
How much property-tax relief should homeowners receive, and how should Florida communities continue funding the local services residents expect?
I believe homeowners should understand both the potential tax savings and the broader local government implications before voting.
Why This Matters for People Planning a Florida Move
Property taxes are one of the most misunderstood costs I encounter with relocating buyers. Many buyers look at the current owner’s property-tax bill and assume theirs will be similar. That is often not the case. A change in ownership can affect assessed value, and homestead exemptions, Save Our Homes benefits and portability rules can materially change the final tax calculation. If Amendment 3 passes, the timing of establishing Florida residency may become another factor buyers need to consider.
For someone already planning a move to Florida in late 2026 or early 2027, the difference between becoming a permanent Florida resident before or after December 31 could potentially affect access to the expanded exemption for several years. That does not mean someone should make a relocation decision solely because of a tax deadline. But it does mean the deadline should be part of the financial analysis.
A Real Estate Decision Should Include the Tax Picture
When comparing homes in Northeast Florida, the purchase price is only one part of affordability. Buyers should also consider:
- Estimated property taxes after purchase
- Homestead eligibility
- Save Our Homes and portability
- Homeowners insurance
- Flood insurance
- HOA fees
- CDD assessments
- Maintenance costs
Two homes with similar prices can carry very different annual ownership costs. That is why property-tax planning should happen before the contract is signed, not after closing.
The Bottom Line
Florida voters will decide Amendment 3 in the November 2026 general election. If approved by at least 60% of voters, the amendment would take effect January 1, 2027.
For qualifying homeowners, the measure could mean a larger homestead exemption and potentially lower non-school property taxes. For owners of rental, second-home and commercial properties, it could mean a lower annual cap on assessment increases.
And for people considering establishing Florida residency, December 31, 2026 could become an important dividing line.
The decision ultimately belongs to Florida voters. But homeowners and future residents should understand both the potential savings and the broader consequences before they vote.
Considering a Move to Northeast Florida?
If you are planning a move to St. Augustine, Nocatee, Ponte Vedra, St. Johns County or another Northeast Florida community, I can help you compare the full cost of ownership, including estimated property taxes, HOA and CDD fees, insurance considerations and community-specific expenses.
The goal is not simply to find a home you can buy.
It is to understand what that home is likely to cost you after you own it.
Ipek Izet Ulger, REALTOR®
CIPS — Certified International Property Specialist
Northeast Florida Residential and Relocation Real Estate
This article is for general informational purposes only and is not tax or legal advice. Property-tax and residency rules can depend on individual circumstances. Consult the appropriate property appraiser, tax professional or attorney regarding your situation.
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Ipek is a Certified Florida Realtor® and Certified International Property Specialist (CIPS) who supports out-of-state and international clients with guidance in both English and Turkish. She helps buyers and sellers throughout Northeast Florida, including Jacksonville, Ponte Vedra, St. Augustine, St. Johns, and Palm Coast.
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