Florida Amendment 3 Passes: What Homeowners and Buyers Need to Know

Florida homeowners could see meaningful property tax savings over the next two years following the passage of Amendment 3, a statewide constitutional amendment approved by voters on November 3rd, 2026. The measure introduces a substantial increase to Florida's homestead exemption, giving qualifying homeowners a larger portion of their primary home's assessed value that is exempt from certain property taxes.

The changes begin in 2027, with another increase scheduled for 2028 and annual inflation adjustments starting in 2029. For homeowners in Orlando and throughout Central Florida, the amendment could provide additional financial flexibility as property ownership costs continue to be an important consideration.

However, the new rules also introduce different eligibility requirements for future Florida residents, adjustments affecting investment and non-homestead properties, and changes to how local governments can use property tax revenue.

Here's what Florida homeowners, prospective buyers, sellers, and real estate investors should understand about Amendment 3 and what it could mean for the state's housing market.

What Is Florida Amendment 3?

Florida Amendment 3, officially titled "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments," was approved by voters during the November 3rd, 2026, general election.

The amendment changes several provisions of the Florida Constitution related to property taxes. Its primary goal is to increase the homestead exemption available to qualifying primary residence owners while also reducing the annual limit on assessed-value increases for non-homestead properties.

Amendment 3 takes effect January 1st, 2027, and first applies to the 2027 property tax roll.

There are three major components homeowners should understand:

• A larger homestead exemption: The exemption for non-school property taxes increases to $150,000 in 2027 and $250,000 in 2028.
• New residency requirements: Certain individuals who establish Florida residency after December 31st, 2026, will have to wait until their fifth year of homestead exemption eligibility to receive the increased benefit.
• A lower assessment cap for non-homestead properties: The annual limit on assessed-value increases decreases from 10% to 5% for qualifying non-homestead properties.

How Much Will the Florida Homestead Exemption Increase?

The most significant change under Amendment 3 is the increase to Florida's homestead exemption for non-school property taxes.

Previously, qualifying homeowners could receive up to $50,000 in homestead exemptions, with the additional exemption applying to non-school taxes. Under the new amendment, the amount of assessed value exempt from non-school property taxes increases substantially over the next two years.

Tax Year	Homestead Exemption for Non-School Taxes
2026	Existing exemption of up to $50,000
2027	Up to $150,000
2028	Up to $250,000
2029 and beyond	$250,000, adjusted annually for inflation

It's important to understand that the increased exemption applies only to non-school property taxes. School district property taxes are not included in this additional exemption, meaning homeowners will continue to pay the applicable school taxes.

The exemption also applies to assessed value, not necessarily the property's current market value or purchase price. This distinction matters because Florida property assessments can differ from what a home could sell for on the open market.

How Much Could Florida Homeowners Save on Property Taxes?

The actual savings from Amendment 3 will depend on where a property is located, its applicable tax rates, and whether it qualifies for the homestead exemption.

Florida TaxWatch estimates that homeowners with an assessed value above the applicable exemption threshold could save approximately $1,035 annually in 2027 and $2,085 annually in 2028 using the statewide average non-school property tax rate of 10.5 mills.

These figures are illustrative estimates, not guaranteed savings. Actual amounts will vary depending on local millage rates and other applicable taxing districts.

For example, a homeowner in Orange County may have a different savings estimate than someone in Seminole, Osceola, Lake, or Polk County because local property tax rates are not identical.

Homeowners whose assessed property value falls below the new exemption amount could see an even different result. If a qualifying primary residence has an assessed value of $250,000 or less in 2028, the non-school property taxes covered by the exemption could be eliminated. School district taxes would still apply.

For homeowners considering a purchase, the increased exemption is another factor worth including when evaluating the long-term cost of owning a home in Florida.

Who Qualifies for the New Florida Homestead Exemption?

The increased exemption is intended for homeowners who qualify for Florida's homestead exemption on their primary residence.

Under Amendment 3, individuals who maintained permanent Florida residency as of December 31st, 2026, can qualify for the increased exemption beginning in 2027, provided they meet the applicable homestead requirements.

This is particularly important for people who already live in Florida and those planning to establish permanent residency before the end of 2026.

What About People Moving to Florida After December 31st, 2026?

Florida continues to welcome people relocating from other states, but Amendment 3 establishes a different timeline for new residents to receive the increased exemption.

Individuals who are not Florida residents as of December 31st, 2026, will initially receive the existing homestead exemption when they qualify. Their exemption for non-school property taxes will be limited to up to $50,000, with the larger exemption becoming available beginning with their fifth year of homestead exemption eligibility.

In other words, someone relocating to Florida after the eligibility cutoff will not automatically receive the full $150,000 or $250,000 exemption during their first years of homeownership.

The amendment also allows the Legislature to provide certain local governments with a process to reduce the waiting period for qualifying critical needs beginning in 2030, subject to the constitutional provisions.

For people considering a move to Orlando or another Central Florida community, this is an important detail to include when comparing housing costs and planning a relocation.

Does Amendment 3 Affect Rental Properties, Second Homes, or Investment Properties?

Not every property owner will qualify for the increased homestead exemption. Amendment 3 specifically targets qualifying primary residences, meaning second homes, vacation properties, rental homes, and commercial properties do not receive the additional $150,000 or $250,000 homestead exemption.

However, non-homestead property owners will see a separate change that could affect how their properties are assessed over time.

The Non-Homestead Assessment Cap Drops From 10% to 5%

Florida currently limits annual increases in the assessed value of qualifying non-homestead real property to 10%, subject to applicable rules. Amendment 3 reduces that annual cap to 5% for non-school property taxes.

This change can affect:

• Rental and investment properties
• Second homes and vacation properties
• Commercial real estate
• Other qualifying non-homestead properties

The lower cap may help limit how quickly assessed values increase for certain property owners. However, it does not mean property taxes will automatically decrease by 5%. Actual tax bills also depend on property assessments, applicable exemptions, and local millage rates.

For real estate investors, understanding the difference between homestead and non-homestead taxation will be especially important when evaluating potential returns and ongoing ownership expenses.

Will Amendment 3 Affect Florida's Save Our Homes Protection?

One question existing homeowners may have is whether the new amendment changes Florida's Save Our Homes benefit.

The answer is no. Amendment 3 does not eliminate Florida's existing Save Our Homes assessment limitation for qualifying homesteaded properties.

Save Our Homes continues to limit annual increases in the assessed value of a qualifying homestead property to 3% or the percentage change in the Consumer Price Index, whichever is lower.

Existing portability provisions also remain in place, allowing eligible homeowners to transfer accumulated Save Our Homes assessment benefits to another qualifying Florida homestead when they move, subject to applicable rules.

This is an important distinction because the increased homestead exemption and Save Our Homes serve different purposes. One reduces the portion of assessed value subject to certain property taxes, while the other limits annual growth in a qualifying home's assessed value.

For existing homeowners, both provisions can continue to play a role in managing long-term housing expenses.

What Does Amendment 3 Mean for Orlando and Central Florida?

For homeowners throughout Greater Orlando, Amendment 3 introduces another consideration when evaluating the cost of owning property in the region.

Orange, Seminole, Osceola, Lake, and Polk counties each have different property tax rates, local taxing authorities, and budget priorities. As a result, the financial impact of the amendment will not be identical across Central Florida.

Orange County officials previously estimated that the amendment could reduce county property tax revenue by approximately $165 million in 2027 and $275 million in 2028. These estimates were prepared before the election and illustrate why local governments will need to evaluate their budgets as the changes take effect.

Property taxes help support a range of local services and infrastructure, including public safety, transportation, parks, and other community needs. With less property tax revenue available, local governments may need to review spending priorities, consider adjustments to certain services, or explore other legally available revenue sources.

Importantly, these potential budget adjustments do not automatically mean that homeowners will experience reduced services or that local property tax rates will increase. Those decisions will depend on individual county and municipal budgets, future legislation, and the financial strategies adopted by local officials.

Changes to How Local Governments Can Use Property Tax Revenue

Amendment 3 also establishes new constitutional restrictions on how counties and municipalities may use property tax revenue.

Under the amendment, these funds are generally designated for specific purposes, including public safety, education and schools, infrastructure, natural resources, bond debt service, employee retirement benefits, and government operations and administration.

Other expenditures may require approval through the procedures outlined in the amendment, subject to applicable state law.

These provisions add another layer to the changes local governments will need to navigate as Florida implements the new property tax structure.

What Should Florida Homebuyers and Sellers Know?

Although Amendment 3 introduces new tax rules, it does not change the fundamentals of buying or selling a home. Buyers should continue to evaluate properties based on their financial goals, location, condition, financing options, and long-term affordability.

For prospective buyers, the increased homestead exemption could provide an additional ownership benefit, particularly for those who qualify under the residency requirements. However, buyers relocating from outside Florida should account for the five-year eligibility timeline when estimating their initial property tax expenses.

For existing homeowners considering a move, the amendment is another reason to review the potential costs and benefits of selling their current property and purchasing another home. Save Our Homes portability, the new homestead exemption, and differences in local property tax rates may all factor into that decision.

Sellers should also remember that the amendment does not directly change their property's market value or guarantee a higher selling price. Buyers will continue to consider location, comparable sales, interest rates, inventory, and overall affordability when making purchasing decisions.

Ultimately, understanding the new tax rules can help both buyers and sellers make more informed decisions without losing sight of the bigger picture.

Planning Your Next Move in the Orlando Real Estate Market

Florida's Amendment 3 represents a meaningful change to the state's property tax structure, with the potential to provide additional savings for qualifying primary residence owners beginning in 2027.

For current homeowners, the larger homestead exemption offers another opportunity to manage ownership expenses. For people planning to relocate to Florida, understanding the new residency requirements can help create more realistic expectations. And for investors, the reduced non-homestead assessment cap is an important consideration when evaluating rental and investment properties.

As these changes take effect, staying informed about local property tax rates, homestead eligibility, and the broader Central Florida housing market will be valuable for anyone considering a real estate move.

Whether you're thinking about buying your first home, selling your current property, relocating to Orlando, or exploring real estate investment opportunities, Aponte Group at Real Broker can help you understand the local market and make decisions that align with your goals.

Have questions about buying or selling a home in Orlando or anywhere in Central Florida? Connect with Aponte Group for local real estate guidance, personalized home searches, and insight into the Central Florida housing market, here.

Frequently Asked Questions About Florida Amendment 3

When does Florida Amendment 3 take effect?

Florida Amendment 3 takes effect January 1st, 2027, and first applies to the 2027 property tax roll. The homestead exemption increases to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029.

How much is the new Florida homestead exemption in 2027?

Beginning in 2027, qualifying Florida homeowners will receive a homestead exemption of up to $150,000 of assessed value for non-school property taxes. The exemption increases to $250,000 in 2028.

Does Florida Amendment 3 eliminate property taxes?

No. Amendment 3 increases the homestead exemption for non-school property taxes but does not eliminate all property taxes. Homeowners will continue to pay applicable school district taxes, and other taxes may still apply depending on the property and its location.

Will existing Florida homeowners automatically qualify for the increased exemption?

Homeowners who maintained permanent Florida residency as of December 31st, 2026, may qualify for the increased exemption beginning in 2027 if they meet the state's homestead eligibility requirements. Homeowners should confirm their exemption status with their county property appraiser.

Can someone moving to Florida in 2027 receive the $250,000 homestead exemption?

Generally, no. Individuals who were not Florida residents on December 31st, 2026, will initially receive the existing exemption when they qualify for homestead. They become eligible for the increased exemption beginning with their fifth year of homestead exemption eligibility, subject to applicable rules.

Does Amendment 3 affect rental properties and second homes?

Rental properties, second homes, vacation homes, and commercial properties do not qualify for the increased homestead exemption. However, the amendment reduces the annual assessed-value increase cap for qualifying non-homestead properties from 10% to 5% for non-school property taxes.

Does Amendment 3 change Florida's Save Our Homes benefit?

No. Florida's Save Our Homes assessment limitation remains in place for qualifying primary residences. It continues to limit annual assessed-value increases to 3% or the Consumer Price Index change, whichever is lower. Existing portability provisions also remain unchanged.

How much money could homeowners save under Amendment 3?

Savings depend on the property's assessed value and local non-school property tax rates. Using the statewide average rate of 10.5 mills, Florida TaxWatch estimates approximately $1,035 in annual savings in 2027 and $2,085 in 2028 for qualifying homes assessed above the applicable exemption amounts. Individual savings will vary.

Will Amendment 3 affect property taxes in Orange County and Orlando?

Yes. Qualifying homeowners in Orange County and throughout Central Florida can benefit from the increased homestead exemption. However, actual savings depend on local millage rates, property assessments, and eligibility. Local governments will also need to adjust their budgets to account for changes in property tax revenue.

Where can I apply for the Florida homestead exemption?

Homeowners can apply for the Florida homestead exemption through their county property appraiser's office. In Orange County, homeowners can visit the Orange County Property Appraiser's website for eligibility information, application instructions, and filing deadlines.

Does the new homestead exemption affect a home's market value?

No. The homestead exemption changes the amount of assessed value subject to certain property taxes. It does not directly change a property's market value, listing price, or resale value.