Big News! Florida voters have approved Amendment 3: What It Means for South Florida Property Owners

Amendment 3, effective changes to Real Estate property taxes starting on January 1, 2027.

Florida voters have approved Amendment 3, introducing changes to homestead exemptions, property tax assessment limits, and residency requirements. Here’s what homeowners, buyers, and investors need to know.

Here’s what homeowners, buyers, and investors need to know.

PRINARY RESIDENCES – Qualifying Florida homeowners will benefit from increased homestead exemptions:

2027: Increases to $150,000

2028: Increases to $250,000

Begining in 2029 and beyond: the exemption will be adjusted for inflation.

These exemptions apply to non-school property taxes and could provide meaningful savings for eligible homeowners.

Important residency requirement: To receive the increased exemption immediately, you must be a Florida resident as of December 31, 2026, and qualify for homestead exemption. Those who establish Florida residency after that date will generally receive the increased benefit beginning with their fifth year of homestead exemption

What About Second Homes & Investment Properties?

RENTAL PROPERTIES, SECOND HOMES & COMMERCIAL PROPERTIES

The annual cap on increases in assessed property value will be reduced from 10% to 5% for non-homestead properties. This is welcome news for landlords and real estate investors, although it does not guarantee that the total property tax bill will increase by no more than 5%.

A FEW THINGS TO KEEP IN MIND:

The expanded homestead exemption does not apply to school district taxes.

Rental properties and second homes do not qualify for the expanded homestead exemption. Actual tax savings will depend on property values, eligibility and local tax rates.

This change could help provide greater predictability in long-term property ownership costs.

Whether you’re buying, selling, or investing, understanding how Amendment 3 may affect your property is an important part of planning ahead.