Florida Amendment 3 Approved: What the New Homestead Tax Changes Mean for Homeowners, Buyers, and Investors

A major change to Florida property taxes is coming. If you are considering making Florida home, the timing of your move could matter more than you realize.

Imagine purchasing a waterfront home in Apollo Beach, enjoying the coastal lifestyle of Sarasota, or finding your place near the beaches of Longboat Key, Siesta Key, or Anna Maria Island. Beyond choosing the right property and community, understanding Florida's property tax structure is an important part of making a smart real estate decision.

On November 3, 2026, Florida voters approved Amendment 3, a Florida Realtors® backed measure that expands the homestead exemption for qualifying homeowners and lowers the annual assessment increase cap for non homestead properties.

The amendment passed with approximately 61.98% voter approval, exceeding the 60% threshold required for a Florida constitutional amendment.

The changes take effect January 1, 2027, and could influence decisions for primary residence buyers, people relocating to Florida, second home owners, rental property investors, and commercial property owners.

Here is what the change means, who may benefit, and what you should understand before buying or selling property in Florida.

1. The Florida Homestead Exemption Is Increasing

Florida's homestead exemption helps reduce the taxable value of a qualifying primary residence. Under Amendment 3, the exemption for non school property taxes will increase substantially.

Here is the new schedule:

Tax year	Expanded exemption for qualifying homeowners
2027	$150,000
2028	$250,000
2029 and beyond	$250,000, adjusted annually for inflation

The expanded exemption applies to the first qualifying portion of a home's assessed value for non school property taxes.

What does this mean in practical terms?

If you own and occupy a Florida property as your permanent residence and qualify for the homestead exemption, a larger portion of your home's assessed value may be excluded when calculating applicable non school property taxes.

That could provide meaningful property tax relief for eligible homeowners.

However, it is important to understand that this does not eliminate property taxes. School district taxes are not included in the expanded exemption, and the actual savings will depend on the property's assessed value and applicable local tax rates.

A $250,000 exemption does not mean every homeowner receives $250,000 in cash savings or a $250,000 reduction in their annual tax bill. It reduces the portion of assessed value subject to certain property taxes.

2. Why December 31, 2026, Is an Important Date for People Moving to Florida

This is one of the most important details for anyone considering a relocation to Florida.

The amendment includes a residency provision that distinguishes between people who were Florida residents by December 31, 2026, and those who become residents afterward.

For qualifying homeowners who were Florida residents by December 31, 2026:

The expanded exemption can apply according to the new schedule, beginning with the $150,000 exemption in 2027 and increasing to $250,000 in 2028, assuming the homeowner establishes and qualifies for the homestead exemption.

For people who become Florida residents after December 31, 2026:

They receive the existing homestead exemption when they first qualify. The larger exemption becomes available beginning in their fifth year of homestead exemption, subject to federal constitutional requirements.

This distinction could be particularly important for families relocating from Ohio, the Midwest, or other states who are considering a Florida primary residence.

For example, someone planning to move from Greater Cincinnati to Sarasota or Tampa Bay may want to evaluate the timing of their residency change, home purchase, and homestead application.

An important clarification: Establishing Florida residency and qualifying for the homestead exemption are related but separate requirements. Simply purchasing a Florida property or obtaining a Florida driver's license does not automatically establish eligibility. Your primary residence, supporting documentation, filing requirements, and applicable deadlines all matter.

If you are planning a move before the end of 2026, consult a qualified Florida tax professional or county property appraiser to understand the requirements that apply to your circumstances.

3. Rental Properties, Second Homes, and Investment Real Estate Receive a Different Benefit

Amendment 3 does not only affect primary residence homeowners.

It also changes the annual assessment increase cap for non homestead properties.

Previously, qualifying non homestead properties were generally subject to a maximum annual assessment increase of 10%, subject to applicable exceptions.

Beginning January 1, 2027, the annual assessment increase cap will be reduced to 5% for non school property taxes.

This change applies to qualifying non homestead properties, including many:

• Long term rental properties
• Second homes and vacation properties
• Investment real estate
• Commercial properties

Why does this matter to property owners?

The lower cap may help moderate how quickly assessed values increase for qualifying non homestead properties.

For investors who own rental homes in Sarasota, Bradenton, Venice, Apollo Beach, or other Gulf Coast communities, this is an important development to understand when evaluating long term ownership costs.

For second home owners, the change may also be relevant when comparing the financial considerations of owning a Florida vacation property versus establishing a Florida primary residence.

However, the 5% cap is not a guarantee that your property tax bill will increase by no more than 5%. It limits annual assessment increases under the applicable rules. Changes in tax rates, exemptions, special assessments, and other charges can still affect the final amount owed.

4. What About Save Our Homes and Homestead Portability?

Florida homeowners may also be wondering whether Amendment 3 changes the existing Save Our Homes assessment limitation or the ability to transfer certain accumulated benefits when moving to another Florida homestead.

The amendment's expanded exemption and lower non homestead assessment cap are separate from the existing Save Our Homes framework.

The established Save Our Homes protections and homestead portability provisions remain in place.

Why is this important?

For homeowners selling one Florida primary residence and purchasing another, portability can be an important part of understanding the potential property tax implications of a move.

For example, a homeowner moving from an existing residence in Bradenton to a new home in Sarasota may want to understand how their existing Save Our Homes benefit could transfer.

Do not assume that purchasing a new home automatically preserves every existing tax benefit. Eligibility, application deadlines, and the amount available for portability should be confirmed with the appropriate county property appraiser.

5. What Does This Mean for Buyers Relocating to Florida?

For people considering a move to Florida, Amendment 3 adds another financial consideration to an already important decision.

Many buyers relocating from Greater Cincinnati and other Midwest markets are comparing more than home prices. They are evaluating property taxes, homeowners insurance, flood exposure, maintenance, transportation, lifestyle, and the overall cost of ownership.

The new homestead exemption may improve the financial picture for qualifying primary residence buyers, but it should be considered alongside the entire ownership budget.

Here are several questions worth discussing before purchasing:

Are you buying a primary residence or a second home?

The distinction matters. A property used as a vacation home or investment property generally does not qualify for the primary residence homestead exemption.

When will you establish Florida residency?

The December 31, 2026, residency provision may affect when you become eligible for the expanded exemption. If you are planning a move, understand the rules before making assumptions about your future tax bill.

Have you reviewed the property's current tax assessment?

A previous owner's tax bill may not reflect your future tax liability. Changes in ownership and applicable assessment rules can affect the amount used to calculate taxes.

Have you evaluated homeowners insurance and flood exposure?

This is especially important for waterfront homes, coastal properties, and homes in low lying areas. A favorable property tax outlook does not eliminate the need to understand wind coverage, flood insurance, deductibles, elevation, drainage, and property specific risks.

Have you reviewed the local community and its services?

Property taxes help support important local services. The amendment also establishes restrictions on how counties and municipalities may use property tax revenue. Buyers should continue evaluating public services, infrastructure, schools, emergency response, and community resources when choosing where to live.

6. What Florida Homeowners Should Consider Before Selling

For current Florida homeowners, the expanded homestead exemption may become an important part of understanding the financial advantages of remaining in a qualifying primary residence.

If you are considering selling, there are several factors worth reviewing.

First, understand how your current homestead exemption and Save Our Homes assessment limitation affect your existing tax bill.

Second, consider whether you plan to purchase another Florida primary residence or relocate out of state. The tax implications may differ depending on your next move.

Third, understand how the property's current assessed value compares with its potential market value. Buyers should not assume the seller's existing property tax bill will remain the same after a purchase.

Finally, make sure your listing communicates the property's value beyond its tax advantages. Location, waterfront access, boating amenities, outdoor living, renovations, condition, and proximity to local destinations all help buyers understand what makes a home desirable.

For sellers in Sarasota, Siesta Key, Longboat Key, Bradenton, Apollo Beach, and surrounding Gulf Coast communities, the right marketing strategy should connect the property's features with the lifestyle buyers are seeking.

7. What Should Rental and Second Home Owners Review?

If you own a rental property, vacation home, or investment property in Florida, the reduction of the non homestead assessment cap from 10% to 5% is worth incorporating into your long term ownership planning.

Consider reviewing:

• Your property's current assessed value and taxable value.

• Whether the property qualifies for the non homestead assessment limitation.

• Your projected property tax expenses for 2027 and beyond.

• Rental income, insurance premiums, maintenance, and association fees.

• Whether the property is best suited for long term rental use, seasonal ownership, or personal enjoyment.

• The potential financial implications of selling, retaining, or purchasing additional investment property.

For owners of Florida vacation rentals, especially in popular destinations such as Anna Maria Island, Siesta Key, Longboat Key, and Sarasota, it is important to evaluate the complete investment picture. Property taxes are only one component of operating expenses and potential returns.

8. Implementation Details Still Matter

Although voters approved Amendment 3, implementation is an important next step.

The Florida Legislature and local governments will need to address administrative procedures, necessary legislative changes, and guidance to ensure the amendment is applied consistently throughout the state.

Property appraisers and local tax authorities will also have an important role in applying the new requirements.

As implementation guidance becomes available, homeowners and prospective buyers should confirm how the changes apply to their individual properties rather than relying on general estimates or assumptions.

It is also important to recognize that the amendment affects local government revenue and places new restrictions on how counties and municipalities may use property tax revenue. The long term effects on local budgets and services will be worth watching.

9. The Bigger Picture: Florida Real Estate and the Cost of Living

Florida continues to attract people seeking sunshine, waterfront living, outdoor recreation, boating, golf, and a different pace of life.

From the boating lifestyle in Apollo Beach and Tampa Bay to the beaches of Siesta Key and the refined coastal atmosphere of Longboat Key, the Gulf Coast offers a wide range of residential experiences.

For some families, the appeal is a full time relocation. For others, it is a second home, a seasonal escape, or an investment property.

Amendment 3 adds another consideration to those decisions.

For qualifying primary residence homeowners, the expanded homestead exemption may provide meaningful tax relief. For qualifying owners of non homestead properties, the lower assessment cap may help moderate the pace of assessed value increases.

But smart real estate decisions should never be based on one tax provision alone.

The right property is one that fits your lifestyle, financial goals, ownership plans, and long term expectations.

Frequently Asked Questions About Florida Amendment 3

When does Florida Amendment 3 take effect?

The amendment takes effect January 1, 2027.

How much is the new Florida homestead exemption?

For qualifying homeowners, the expanded exemption for non school property taxes is $150,000 in 2027 and $250,000 in 2028. The amount will be adjusted annually for inflation beginning in 2029.

Do new Florida residents qualify for the full exemption immediately?

Not necessarily. People who were not Florida residents by December 31, 2026, receive the existing homestead exemption when they first qualify. The expanded exemption begins in their fifth year of homestead exemption, subject to federal constitutional requirements.

Does the expanded exemption apply to school taxes?

No. The expanded exemption applies to non school property taxes. School district taxes are not included in this increase.

Does the amendment apply to rental properties and second homes?

Rental properties, second homes, and commercial properties do not receive the expanded primary residence homestead exemption simply because they are located in Florida. However, qualifying non homestead properties benefit from the reduction in the annual assessment increase cap from 10% to 5%.

Does Amendment 3 eliminate Florida property taxes?

No. It changes certain exemptions and assessment limitations. Property owners will continue to have property tax obligations, and the final amount depends on applicable assessments, tax rates, and other factors.

Does Save Our Homes portability still exist?

Yes. The existing Save Our Homes protections and portability provisions remain in place.

Thinking About Moving to Florida? Timing and Planning Matter.

Florida Amendment 3 creates new opportunities for qualifying homeowners, but understanding the details is essential.

If you are considering relocating from Greater Cincinnati to Florida, purchasing a second home along the Gulf Coast, or evaluating an investment property, I believe the best decisions begin with understanding the entire picture.

That means looking beyond the purchase price to property taxes, insurance, flood considerations, community amenities, lifestyle, and long term ownership costs.

My goal is to help buyers and sellers make informed decisions with confidence, whether they are exploring waterfront homes in Apollo Beach, luxury real estate in Sarasota, coastal properties on Siesta Key, or a second home on Longboat Key.

The right move is about more than finding a beautiful property. It is about understanding what comes with owning it and making sure it supports the life you want to live.

For questions about buying, selling, or relocating between Greater Cincinnati and Florida's Gulf Coast, I would be happy to help you understand the real estate side of the decision and connect you with the appropriate local professionals for tax and legal guidance.