Florida Amendment 3: Major Property Tax Changes Beginning in 2027
What Florida Homeowners, Buyers, Sellers, and Real Estate Investors Need to Know
Published: November 4, 2026
Florida voters approved Amendment 3 in the November 3, 2026 general election, according to unofficial election-night results. The constitutional amendment introduces significant changes to Florida property taxes, including expanded homestead exemptions, new residency requirements, reduced assessment increases for non-homestead properties, and restrictions on certain local government expenditures.
The changes are particularly important for homeowners, real estate investors, commercial property owners, and individuals planning to purchase property in Florida.
Most provisions take effect January 1, 2027, with additional homestead exemption increases scheduled for 2028 and inflation adjustments beginning in 2029.
At the Law Offices of Fishman-Sitbon, P.A., we help Florida property owners, buyers, sellers, and investors understand the legal considerations associated with real estate ownership and transactions throughout Miami-Dade and Broward counties.
1. Florida Homestead Exemption Increases to $150,000 in 2027
One of the most significant changes introduced by Amendment 3 is the expansion of Florida's homestead property tax exemption.
Under the amendment, qualifying homeowners who satisfy the applicable residency requirements may receive an exemption of up to $150,000 of assessed value for property taxes other than school district taxes beginning January 1, 2027.
The exemption increases to $250,000 beginning January 1, 2028.
Beginning January 1, 2029, the $250,000 exemption will be adjusted annually for inflation.
Homestead Exemption Timeline
Tax Year | Non-School Homestead Exemption |
2026 | Existing exemption rules |
2027 | Up to $150,000 |
2028 | Up to $250,000 |
2029 onward | $250,000, adjusted for inflation |
These changes apply to eligible homestead properties and do not automatically eliminate every component of a homeowner's property tax bill.
Important: The increased exemption applies to non-school property taxes. School district taxes remain subject to separate exemption rules.
2. New Florida Residents Face a Five-Year Requirement
Amendment 3 also establishes a distinction between certain existing Florida residents and individuals establishing Florida residency after December 31, 2026.
Individuals who were not Florida residents as of December 31, 2026, may qualify for the existing homestead exemption when otherwise eligible. However, the increased exemption generally does not become available until the fifth year of exemption.
The amendment expressly makes this restriction subject to the United States Constitution.
This provision may be particularly important for individuals relocating to South Florida, including buyers moving from other states.
Prospective homeowners should not assume that purchasing a Florida residence in 2027 automatically qualifies them for the expanded $150,000 exemption.
The applicable exemption depends on the property's homestead status, residency requirements, and implementation of the constitutional provisions.
3. Non-Homestead Property Assessment Cap Drops From 10% to 5%
Amendment 3 also changes the annual assessment limitation for qualifying non-homestead real estate.
Beginning January 1, 2027, the annual cap on increases in assessed value for covered non-homestead property decreases from 10% to 5%.
This change may benefit owners of qualifying properties, including:
Investment and rental properties
Commercial buildings and office properties
Certain second homes and vacation properties
Other eligible non-homestead real estate
However, the 5% limitation applies to annual assessment increases, not necessarily to the final amount of property taxes owed.
Additionally, changes in ownership or control can trigger reassessment under Florida law. New construction and qualifying improvements may also affect assessed value.
For real estate investors: The reduced assessment cap may provide greater predictability in annual taxable assessments, but it should not be interpreted as a guarantee that property taxes can increase by no more than 5% each year.
4. New Rules for County and Municipal Property Tax Spending
Amendment 3 also modifies the constitutional framework governing how counties and municipalities use property tax revenues.
The amendment identifies several authorized categories of expenditures, including:
Public safety, including law enforcement and emergency services
Education and schools
Infrastructure and transportation
Natural resources and flood control
Debt service on qualifying bonds
Government employee retirement obligations
Local government operations and administration
The amendment also permits certain additional expenditures approved by county officers or local governing bodies unless prohibited by general law.
These provisions may affect future local government budgeting and financing decisions.
For South Florida property owners, changes to local government revenues and spending could have implications for infrastructure, public services, and municipal financial planning.
5. Additional Options for Local Homestead Tax Relief
Amendment 3 requires the Florida Legislature to establish a uniform procedure allowing counties and municipalities to increase homestead exemptions for their respective property tax levies, potentially up to the property's full assessed value.
The amendment also allows certain special districts to increase exemptions, subject to voter approval.
These provisions do not automatically eliminate all non-school property taxes on every homestead.
Additional relief will depend on the applicable constitutional requirements, implementing legislation, and local government decisions.
6. What Amendment 3 Means for Florida Homebuyers and Sellers
For individuals buying or selling residential real estate in Florida, Amendment 3 creates several important considerations.
Homebuyers: Buyers should carefully review their anticipated property tax obligations before closing. A seller's current property tax bill may not reflect the amount the buyer will owe after a transfer of ownership or reassessment.
Homeowners: Existing homeowners should verify their homestead eligibility and understand how the expanded exemptions apply to their property.
New Florida Residents: Buyers relocating to Florida should review the five-year requirement before estimating future homestead tax savings.
Sellers: Sellers should avoid representing that their existing exemptions or property tax savings will automatically transfer to a purchaser.
Real Estate Investors: Investors should consider how the new 5% assessment limitation interacts with reassessment rules, ownership structures, and potential acquisitions.
These issues are particularly relevant in markets such as Aventura, Sunny Isles Beach, Miami Beach, North Miami Beach, Hallandale Beach, Hollywood, and surrounding South Florida communities.
7. When Will Florida Amendment 3 Take Effect?
Amendment 3 establishes the following implementation schedule:
Effective Date | Main Change |
January 1, 2027 | Homestead exemption increases to $150,000 for qualifying homeowners |
January 1, 2027 | Non-homestead assessment increase cap decreases from 10% to 5% |
January 1, 2027 | New residency-related homestead rules begin |
January 1, 2027 | New local government property tax spending provisions take effect |
January 1, 2028 | Expanded homestead exemption increases to $250,000 |
January 1, 2029 | Annual inflation adjustments to the expanded exemption begin |
Actual tax savings will depend on assessed property values, applicable millage rates, exemption eligibility, and other relevant factors.
Frequently Asked Questions About Florida Amendment 3
1. Does Amendment 3 eliminate property taxes in Florida?
No. Amendment 3 substantially increases the homestead exemption for qualifying properties but does not automatically eliminate all property taxes. School district taxes and other applicable charges may remain.
2. When does the $150,000 Florida homestead exemption begin?
The increased exemption is scheduled to begin January 1, 2027, for qualifying homeowners who meet the applicable requirements.
3. When will the homestead exemption increase to $250,000?
The amendment provides for an increase to $250,000 beginning January 1, 2028, followed by annual inflation adjustments beginning in 2029.
4. Does Amendment 3 apply to commercial and investment properties?
Yes. Qualifying non-homestead properties may benefit from the reduction in the annual assessment increase cap from 10% to 5%. The expanded homestead exemption, however, is intended for qualifying homestead properties.
5. Will new Florida residents receive the increased homestead exemption immediately?
Generally, no. Individuals who were not Florida residents on December 31, 2026, are subject to a five-year exemption requirement before receiving the expanded exemption, to the extent permitted by the United States Constitution.
6. Does Amendment 3 change the Save Our Homes assessment limitation?
Amendment 3 changes the assessment limitation for qualifying non-homestead properties. It does not replace the existing Save Our Homes assessment limitation for homestead properties.
7. Should Florida homebuyers review property taxes before closing?
Yes. Property taxes may change following a transfer of ownership, reassessment, or a change in exemption eligibility. Buyers should review projected property taxes and their individual circumstances before completing a transaction.
Speak With a Florida Real Estate Attorney About Your Property Transaction
Florida Amendment 3 introduces substantial changes to the state's property tax framework. Understanding how these changes interact with homestead eligibility, real estate purchases, property ownership, and closing procedures is important for homeowners and investors.
At Law Offices of Fishman-Sitbon, P.A., we provide attorney-led legal representation for residential and commercial real estate transactions, contract review, closings, deed transfers, and title insurance services.
Our office serves clients in Aventura, Miami, Sunny Isles Beach, North Miami Beach, Hallandale Beach, Hollywood, Bal Harbour, Golden Beach, and throughout Miami-Dade and Broward counties.
Law Offices of Fishman-Sitbon, P.A.20900 NE 30th Avenue, Suite 200Aventura, FL 33180Phone: (786) 529-2480Website: https://fsplegal.com
Contact our office to discuss your Florida real estate transaction and related legal considerations.
Legal Disclaimer: This article provides general information about Florida Amendment 3 as of November 4, 2026, based on the constitutional amendment and unofficial election results. It does not constitute legal or tax advice. Implementation, judicial interpretation, and individual eligibility may affect the application of these provisions. Consult qualified legal and tax professionals regarding your particular circumstances.
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