Florida Amendment 3 Passes: Homestead Exemption Jumps to $250,000, While the Clock Ticks for New Residents

Florida voters just delivered one of the biggest property tax cuts in the state’s history. Amendment 3 raises the homestead exemption fivefold, caps assessment increases on investment and commercial property, and creates a five-year waiting period for anyone who becomes a Florida resident after December 31, 2026.

The Key Changes

• Bigger homestead exemption. The exemption from non-school property taxes rises from $50,000 to $150,000 on January 1, 2027, and to $250,000 on January 1, 2028, with inflation adjustments after that. School district taxes, roughly 60% of the typical bill, are still subject to the existing exemption rules.
• Waiting period for newcomers. Anyone who establishes Florida residency after December 31, 2026, starts with the existing $50,000 exemption and qualifies for the full increased exemption in their fifth year of primary residence.
• Lower cap for non-homestead property. Starting January 1, 2027, annual increases in assessed value for second homes, rental properties, and commercial property are capped at 5%, down from 10%.

For a more in depth analysis, see our earlier article, What You Need to Know About Florida’s “Save Our Homes from Excessive Property Taxes” Proposed Constitutional Amendment.

What to Do Now

• Planning a move to Florida? Establish residency before year-end 2026 to avoid the waiting period. Buying a Florida home alone doesn’t establish eligibility.
• Own investment or commercial property? Reassess your holding-cost projections under the new 5% cap.
• Watch your local government. With less property tax revenue coming in, counties and cities may raise millage rates or look for other revenue, which could offset some of the savings.

Have questions about how Amendment 3 affects your property or your residency timeline? Contact a member of Williams Parker’s Real Estate team.