Florida Amendment 3 Passes: What It Means for Homeowners, Buyers, and Real Estate Agents in 2027

Florida voters approved Amendment 3 on November 3, 2026. Unofficial election-night results showed it receiving about 62% of the vote, two points more than the 60% a constitutional amendment needs (NBC Miami / News Service of Florida). As of November 4, 2026, these results are unofficial; final numbers become official after the state canvass and certification, published by the Florida Division of Elections. The amendment text and analysis come from the Florida Senate bill summary for CS/HJR 1-F.

For homeowners, it is the biggest change to Florida’s homestead exemption in decades. For buyers, investors and the agents who advise them, it changes how the cost of owning a home is calculated from 2027 on. This guide explains what passed, what it does not do, who qualifies and how agents can help clients make sense of it. If you want the legislative background and the pre-election debate, see our original Amendment 3 explainer.

Key Takeaways

• Amendment 3 passed with about 62% in unofficial results and takes effect January 1, 2027.
• The homestead exemption from non-school taxes rises to up to $150,000 (2027) and up to $250,000 (2028), indexed to inflation from 2029.
• The $25,000 school-tax exemption is unchanged, but school tax bills can still change with assessed value and school millage. Property taxes and non-ad valorem assessments (such as solid waste or drainage) are not eliminated.
• The assessment-growth cap for non-homestead property falls from 10% to 5% for non-school taxes. This is not Save Our Homes: the homestead cap (3% or CPI, whichever is lower) and portability are unchanged.
• Anyone who was a Florida permanent resident on December 31, 2026, including renters, can qualify for the full amounts when they later establish a homestead.
• People who become residents on or after January 1, 2027 start at up to $50,000 and generally reach the full amount in the fifth year of their exemption.
• State economists estimate the change reduces non-school local revenue by about $11.8 billion a year once fully in effect. That is an official projection; effects on home values and sales are not guaranteed.

What Is Florida Amendment 3?

Amendment 3 began as CS/HJR 1-F, “Save our Homes from Excessive Property Taxes,” sponsored by Rep. Overdorf, with a Senate companion by Senators Avila, Bernard and Mayfield. The Legislature passed it 30-9 in the Senate and 75-26 in the House, sending it to the November 2026 ballot (Florida Senate bill summary; bill history). It has three main parts.

1. A larger homestead exemption from non-school taxes

Today a Florida homestead receives a $25,000 exemption that applies to all taxes, plus an additional exemption that applies only to non-school taxes. Together, the non-school exemption is about $50,000 (the 2026 figure is $51,411, according to the Pinellas County Property Appraiser). Amendment 3 replaces that non-school amount with up to $150,000 in 2027 and up to $250,000 in 2028. It does not stack on top of the old amount.

2. A lower assessment cap for non-homestead property

Non-homestead residential property (rentals, second homes) and non-residential property (commercial, industrial) currently have assessed-value increases capped at 10% a year for non-school taxes. Amendment 3 lowers that cap to 5%. This is not the homestead cap: homesteads stay under Save Our Homes, which limits increases to 3% or inflation, whichever is lower.

3. Limits on how local property tax revenue is used

Counties and cities must direct ad valorem revenue to listed purposes: public safety; education and public schools; infrastructure such as roads, bridges and stormwater; natural resources and flood control; bonds and debt service; employee retirement; and the operations of constitutional officers, commissions and municipalities. The Legislature must also create a uniform way for counties and cities to raise the exempt amount, and special districts can raise it by referendum.

Some details still depend on implementing legislation and on guidance from the Florida Department of Revenue and county property appraisers, including how residency as of December 31, 2026 is documented. Check the Senate bill summary for the exact provisions and any exceptions.

How Much Could Homeowners Save?

Three numbers determine a property tax bill. Assessed value is the value the property appraiser uses after caps like Save Our Homes. Taxable value is assessed value minus exemptions. Millage is the tax rate, where one mill equals $1 per $1,000 of taxable value. Savings come from the extra exempt value multiplied by your local non-school millage, not from the exemption amount itself. A $250,000 exemption does not mean $250,000 in savings.

Example: a homestead assessed at $400,000

This hypothetical keeps every other factor constant so the effect of the exemption is easy to see. Assumptions: assessed value stays at $400,000, the combined non-school millage is 10 mills, millage rates do not change, and the owner has no other exemptions.

Real results will differ. Non-school millage varies widely by county, city and taxing district, local governments may adjust rates in response to lost revenue, and assessed values change from year to year. Homes assessed below the exemption amount would see non-school taxable value fall to zero, but would still pay school taxes. School taxes can also change if the assessed value or the school millage rate changes, and non-ad valorem assessments on the bill (solid waste, drainage, special assessments) are not reduced by the exemption. Your county property appraiser is the authority on your specific property.

When Does Amendment 3 Take Effect?

County appraisers say existing homesteads do not need to reapply; the new amount is applied automatically (Manatee County Property Appraiser; Pinellas County Property Appraiser). New buyers still file a homestead application by the March 1 deadline, as described by the Florida Department of Revenue.

What Amendment 3 Means for Homebuyers

Buyers evaluate a home by the total monthly payment: principal, interest, insurance, HOA dues and property taxes. For a buyer who qualifies for the full exemption, a lower non-school tax bill reduces the escrowed portion of that payment, which can help affordability and, in some cases, debt-to-income ratios.

One caution: lenders and listing portals often estimate taxes from the seller’s current bill or a flat percentage of price. Those estimates may not reflect a new buyer’s reassessed value or the new exemption until 2027 figures are published. Buyers should ask their lender how taxes are being estimated, and agents should avoid quoting a specific tax number without the appraiser’s estimator or a professional calculation.

Demand effects are harder to measure. Lower carrying costs may bring some hesitant buyers back, but mortgage rates and insurance premiums remain the larger drivers of affordability in most Florida markets.

What It Means for Homeowners and Sellers

Existing homesteaders get the most direct benefit: a lower non-school tax bill starting in November 2027 without reapplying. Lower holding costs may encourage some owners to stay longer, especially long-time owners whose Save Our Homes benefit is already large.

For sellers who plan to buy again in Florida, the message is reassuring: portability still transfers up to $500,000 of the Save Our Homes benefit, and the larger exemption applies to the new homestead too, as long as the seller was a Florida permanent resident on December 31, 2026. If more owners feel comfortable moving up or downsizing, that could add some resale inventory, but there is no reliable forecast yet.

What It Means for Investors and Rental Property Owners

Investment property does not get the homestead exemption. The benefit for investors is the lower assessment cap: from 2027, the assessed value used for non-school taxes on non-homestead property can rise no more than 5% a year instead of 10%. That makes year-to-year tax increases more predictable for long-term holders.

Keep three limits in mind when advising investors:

• A cap is not a tax cut. It limits assessment growth. The bill can still rise if millage rates go up.
• Sales reset the clock. Non-homestead property is generally reassessed to market value after a change of ownership, so a buyer does not inherit the seller’s capped value.
• School taxes are outside the cap change. The 5% cap applies to non-school levies.

Investors should also watch local budgets. If governments lose homestead revenue, some may look to millage rates, fees or other sources, which could affect rental property owners.

Residency Rules: Who Gets the Full Exemption?

The key date is December 31, 2026. Under the amendment, people who maintained permanent residence in Florida as of that date “and have established or will establish homestead” qualify for the full amounts (Florida Senate).

• Current homeowners with a homestead: the new amount applies automatically in 2027.
• Florida renters who lived here permanently on December 31, 2026: they can qualify for up to $150,000 (2027) or $250,000 (2028) when they buy and establish a homestead later. They do not have to buy before the deadline.
• Relocation buyers who arrived in 2026: if they established permanent residence by December 31, 2026, they are treated like other existing residents. Documentation of residency matters.
• People moving to Florida in 2027 or later: up to $50,000 (inflation-adjusted from 2028), then up to the full amount starting with the fifth year of their exemption. From 2030, a county or city may shorten that wait by a two-thirds vote for a critical local need.

How residency as of December 31, 2026 will be documented is a question for each county property appraiser and future legislation. Agents should direct clients there rather than interpret individual situations. Agents helping clients relocate may find our moving-to-Florida guide useful for their own move as well.

Will Amendment 3 Increase Home Values or Sales?

Lower carrying costs can support demand, and supporters such as Florida Realtors, which endorsed the measure, argued it would help Floridians afford to stay in their homes. But property taxes are only one piece of housing costs. Mortgage rates, homeowners and flood insurance, condo association costs, inventory levels and asking prices will continue to shape the 2027 market, as we discussed in our Florida market outlook.

Local responses matter too. If cities and counties raise millage rates to offset lost revenue, some of the savings could shrink. The honest answer is that no one can predict a specific change in values or sales volume. Agents who say otherwise risk misleading clients.

Risks and Open Questions for Local Governments

The state’s Revenue Estimating Conference estimated the non-school local revenue impact at about −$4.93 billion in fiscal year 2027-28, −$8.71 billion in 2028-29 and about −$11.83 billion a year on a recurring basis, with no impact on school revenue (Office of Economic and Demographic Research). Legislative staff analyses show slightly different figures, so treat these as official estimates, not final results. They describe government revenue, not home values or sales, which no official source has projected.

Local officials, sheriffs and emergency services groups opposed the amendment, warning about pressure on services (WLRN). How each county and city responds through budgets, millage rates and service levels will vary, and the Legislature still has to pass implementing laws. Buyers and owners should follow their local budget hearings each summer.

Six Opportunities for Florida Real Estate Agents

1. Reconnect with buyers who postponed

Many buyers paused in 2026 over monthly costs. Walk them through how the new exemption could change their tax estimate, and pair it with a lender conversation about rates.

2. Educate past clients

A short, accurate note explaining what changes on their 2027 bill (and that they do not need to reapply) is useful, low-pressure outreach.

3. Build side-by-side cost comparisons

For a buyer choosing between homes, compare total monthly cost, including estimated taxes from the property appraiser’s estimator, insurance and HOA dues. Label every estimate and its source.

4. Advise rental investors carefully

Explain the 5% non-homestead cap, the reassessment after purchase and the difference between a cap and a tax cut. Coordinate with the client’s tax advisor; our tax deductions guide covers the agent side of taxes.

5. Create local content

In South Florida, an agent in Broward or Palm Beach County might explain how the change plays out for condo owners alongside rising association costs (see our South Florida condo market guide). In Southwest Florida, a Lee County agent might focus on renters in Fort Myers or Cape Coral who were residents on December 31, 2026 and can still buy with the full exemption later. Use your county appraiser’s published figures, not guesses.

6. Be the informed advisor

Clients will hear oversimplified claims, such as “property taxes are gone” or “investors get a tax cut.” Agents who correct those claims calmly and point to primary sources build trust. Leave legal and tax determinations to the property appraiser, attorneys and tax professionals.

Florida Amendment 3: Frequently Asked Questions

The Bottom Line

Amendment 3 lowers non-school property taxes for eligible Florida homesteads starting with 2027 bills, raises the exemption again in 2028 and slows assessment growth on non-homestead property. It does not eliminate property taxes or non-ad valorem assessments, does not change the school-tax exemption and does not guarantee a stronger market. For agents, the opportunity is to be the clear, accurate voice clients trust while the details are implemented.

Legal and informational disclaimer: This article is general information, not legal or tax advice. Figures reflect the amendment summary, unofficial election results and county appraiser guidance available on November 4, 2026, and may change with certification and implementing legislation. Tax examples are illustrations based on stated assumptions, not guarantees of savings. Confirm property-specific questions with your county property appraiser or a qualified professional.

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