Florida Amendment 3 Could Reshape Property Taxes Statewide
Florida voters will decide this November whether to approve Amendment 3, a proposed constitutional amendment that could significantly change how homestead and non-homestead properties are taxed throughout the state.
If approved, the measure would substantially increase the homestead exemption for certain Florida residents, reduce the assessment cap for investment and commercial properties, and impose new limitations on local property tax collections.
A Larger Homestead Exemption for Florida Residents
The most significant provision of Amendment 3 is the proposed increase in the homestead exemption for property taxes levied by counties, municipalities, and other local taxing authorities.
Under the proposal, qualifying homeowners who maintain permanent Florida residency on or before December 31, 2026, would receive:
- An exemption of up to $150,000 in assessed value beginning January 1, 2027
- An exemption of up to $250,000 in assessed value beginning January 1, 2028
- Annual inflation adjustments beginning in 2029
The expanded exemption would not apply to property taxes levied by school districts. The existing exemption applicable to school district taxes would remain in place.
Because the exemption is based on assessed value, some lower valued homestead properties could become largely or completely exempt from county and municipal property taxes. The precise savings would depend on the property’s assessed value and the millage rates imposed by the applicable local taxing authorities.
Different Rules for New Florida Residents
The proposal creates different eligibility rules for individuals who establish Florida residency after December 31, 2026.
New residents would initially receive an exemption of up to $50,000 from non-school property taxes. They would generally become eligible for the expanded exemption during the fifth year of their Florida residency.
Beginning in 2030, a county or municipality could shorten this waiting period when necessary to address a critical local need. Doing so would require approval by two thirds of the governing body.
Anyone considering a move to Florida should understand that the timing of permanent residency and homestead qualification could have a substantial effect on future property tax obligations if the amendment passes.
Assessment Cap for Investment and Commercial Properties
Amendment 3 would also affect properties that do not qualify for the homestead exemption. This includes rental properties, second homes, vacation properties, and commercial real estate.
Florida currently limits annual increases in the assessed value of most non-homestead property to 10 percent. Amendment 3 would reduce that annual assessment cap to 5 percent.
This provision could provide meaningful protection for real estate investors and business owners in areas where property values are rising rapidly. However, the cap applies to increases in assessed value and does not guarantee that the total tax bill will increase by no more than 5 percent. Changes in millage rates, special assessments, and other charges may still affect the final amount owed.
Limits on Local Property Tax Revenue
The amendment would also place new constitutional restrictions on the use of county and municipal property tax revenue. Permitted uses would include public safety, education, infrastructure, flood control, natural resource projects, bond obligations, employee retirement obligations, and government operations.
Related legislation would narrow the circumstances under which local governments could increase millage rates. According to an Orange County summary of Amendment 3, a rate of up to 110 percent of the rolled back rate would require approval by two thirds of the governing body. A higher rate would require unanimous approval.
Supporters argue that these restrictions would provide greater protection for property owners and encourage local governments to control spending. Critics contend that the reduction in taxable property value could affect funding for law enforcement, fire rescue, infrastructure, parks, and other local services.
The impact would vary considerably among counties and municipalities based on property values, existing exemptions, local budgets, and the percentage of properties that qualify as homesteads.
The Ballot Language Is Being Rewritten
The amendment remains scheduled for the November 3, 2026 general election, but the language voters see on the ballot is being revised.
In August 2026, a Leon County circuit judge ruled that the original ballot title and summary contained promotional and potentially misleading language. The court ordered state officials to prepare a more neutral description of the proposal. State officials have indicated that they do not plan to appeal the ruling and are working on revised language.
The ruling concerns how the amendment is described on the ballot. It does not, by itself, remove Amendment 3 from the November election.
What Happens If Amendment 3 Passes?
A Florida constitutional amendment must receive approval from at least 60 percent of the voters casting ballots on the measure.
If Amendment 3 reaches that threshold, most of its provisions would take effect on January 1, 2027. The larger $250,000 homestead exemption would begin in 2028.
If the amendment does not receive the required approval, Florida’s existing homestead exemptions and property assessment limitations will remain in effect.
What Florida Property Owners Should Consider
Before the election, property owners should review how their property is classified and whether it currently qualifies for homestead protection. Homeowners should also confirm that their permanent residency and exemption records are accurate with the county property appraiser.
Landlords, investors, and commercial property owners should pay particular attention to the proposed reduction of the non-homestead assessment cap. Although these properties would not qualify for the expanded homestead exemption, the lower assessment cap could affect future property tax planning and investment decisions.
Property taxes involve more than a property’s market value. Homestead status, assessed value, portability, exemptions, millage rates, ownership changes, and local assessments may all influence the final tax bill.
Amendment 3 represents one of the most significant proposed changes to Florida’s property tax system in years. Property owners should carefully review the final ballot language and consider how the amendment could affect both their individual tax obligations and the local services supported by property tax revenue.
This article is provided for general informational purposes and does not constitute legal or tax advice. The status and ballot language of Amendment 3 may change before the November 2026 election. Property owners should consult a qualified professional regarding their specific circumstances.