On November 3, 2026, Florida voters approved Amendment 3 with roughly 62% of the vote — clearing the 60% needed to change the state constitution. It's the biggest shake-up to Florida property taxes in years, and if you own a home (or plan to buy one) in Palm Beach or Broward County, it's worth understanding exactly what changed and when.
Here's a plain-English breakdown of what Amendment 3 does, who benefits, and what it could mean for your next move.
The Big Change: A Much Larger Homestead Exemption
Until now, Florida's homestead exemption has topped out at about $50,000 (the 2026 maximum is $51,411). Amendment 3 dramatically increases it for non-school property taxes:
- 2027: $150,000 exemption
- 2028: $250,000 exemption
- 2029 and beyond: the $250,000 amount is adjusted annually for inflation
The amendment also directs the Legislature to create a process that lets counties and cities raise the exemption even further over time — potentially up to the full assessed value. That part isn't automatic; it depends on future action.
What It Does NOT Cover: School Taxes
This is the most common misconception. The bigger exemption applies to county, city and most other local levies — not school district taxes. Your school taxes will still receive the existing $25,000 exemption, so your bill won't drop to zero. School taxes typically make up a meaningful share of a South Florida tax bill, so plan accordingly.
When Will You See Savings?
Not on this month's bill. Florida collects property taxes in arrears, so the bill arriving in November 2026 covers the 2026 tax year and is unaffected. The amendment takes effect January 1, 2027, which means the first bills reflecting the higher exemption will arrive in late 2027.
How much will you save?
It depends on your home's assessed value and your local non-school millage rate. A simple way to estimate: every additional $100,000 of exemption saves you $100 for every mill of non-school tax you pay. So if your non-school millage totals 10 mills, moving from a ~$50,000 to a $150,000 exemption would save roughly $1,000 a year, and about twice that once the $250,000 exemption kicks in. (This is an illustration only — your actual numbers will vary.)
If your home is assessed at or below the exemption amount, you'd pay essentially only school taxes on it.
Second Homes, Rentals & Investment Properties
If you own property that isn't your primary residence, Amendment 3 still matters to you. Starting in 2027, the annual cap on assessment increases for non-homestead property drops from 10% to 5% for non-school taxes. That includes:
- Second homes and seasonal residences
- Rental and investment properties
- Commercial real estate
That's real protection against big jumps in assessed value. One thing to watch, though: as homestead properties get larger exemptions, local governments may adjust millage rates to make up some of the lost revenue. Because non-homestead properties don't get the bigger exemption, they could feel more of any rate increase — partially offset by that new 5% cap.
Moving to Florida? The Timing Rules Matter
Amendment 3 treats homeowners differently depending on when they became Florida residents:
- Already a Florida resident by December 31, 2026? You qualify for the expanded exemption starting in 2027 once you have a homestead.
- Becoming a Florida resident on or after January 1, 2027? You'll receive the existing (smaller) exemption at first, with the increased exemption beginning in your fifth year of homestead exemption. Counties and cities can vote (by a two-thirds majority) to shorten that wait.
If you or someone in your family is planning a move to South Florida, the December 31, 2026 date is worth discussing with a tax professional now. There are still open questions the Legislature is expected to clarify — for example, exactly how the rules apply to existing Florida residents who buy their first homestead after the amendment takes effect.
What About Local Services?
Local governments raised concerns about the revenue impact. State economists estimate statewide local property tax collections will fall by roughly $12 billion a year once fully phased in. To address this, Amendment 3 requires counties and cities to spend property tax revenue on core services: public safety, education and schools, infrastructure, natural resources, bond debt, employee retirement benefits, and operations and administration. Local governments keep their authority to set millage rates within existing legal limits.
How each city and county responds will play out over the next couple of budget cycles, so it's worth keeping an eye on your local commission meetings and TRIM notices.
What This Means If You're Buying or Selling
For buyers:
Lower ongoing property taxes improve affordability and can make a real difference in your monthly payment, especially on homes in the $300K–$700K range where the exemption covers a large share of assessed value. Remember: Save Our Homes still caps annual assessment increases on your homestead at 3% (or inflation, if lower), so the new exemption stacks on top of protections you already have.
For sellers:
A larger homestead exemption makes Florida homeownership more attractive, which can support buyer demand. It's also a great talking point when marketing your home — buyers want to know what their taxes will actually look like.
For investors and second-home owners:
The 5% non-homestead cap brings more predictability to your carrying costs. Factor potential millage changes into your projections.
One more reminder:
If you bought a home in 2026 and haven't filed for homestead yet, the deadline to apply with the Property Appraiser is March 1, 2027. Don't leave money on the table.
What Happens Next
The Florida Legislature is expected to pass implementing legislation before or during the 2027 session, which will fill in details like residency determinations and the process for local governments to expand exemptions further. I'll be following those updates closely and sharing what they mean for South Florida homeowners.
Let’s Talk About Your Property Taxes
Have questions about what Amendment 3 means for your home? Call or text me at 561-901-8942 or visit salesbycourt.com. I’ll help you sort through the details.
Courtney Farrell Team: Real Estate Simplified.
