Florida Property Tax Amendment 3: What It Means for Buyers

Status (updated October 6, 2026): Amendment 3 is on the November 3, 2026 ballot and needs 60% of the vote to pass. It has not passed. We'll update this page with the result after the election.

What if you could buy a higher-priced home without raising your monthly housing budget? Lower property taxes could make that possible for some Florida buyers — or let current owners keep the same home and spend less each month.

That's the practical question behind Florida's Amendment 3. Below, we explain what it would change, who qualifies, and a simple example of what it could mean for buying power and the cost of owning versus renting.

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Amendment 3 at a Glance

• What it does: raises the homestead exemption from non-school property taxes to $150,000 in 2027 and $250,000 in 2028, then adjusts for inflation.
• What it doesn't do: eliminate property taxes. School taxes stay the same, and homes above the exemption still owe some non-school taxes.
• Who qualifies: homesteaded owners of a permanent Florida home, with a residency rule for newcomers (explained below).
• Rentals and second homes: no larger exemption, but a lower 5% annual assessment cap for non-school taxes.
• Local governments: property tax revenue would be limited to core services unless other spending is approved.
• The vote: November 3, 2026. It needs 60% approval.

What Amendment 3 Would Change

An exemption removes that much assessed value from the tax calculation — it isn't that amount in cash savings. Your actual savings depend on your home's value and the tax rates where you live.

The amendment would also require counties and cities to spend property tax revenue on core services — public safety, schools, infrastructure, natural resources, debt service, employee retirement benefits, and operations — unless other spending is approved by the local governing body.

Who Qualifies: The December 31, 2026 Residency Rule

The larger exemption is for homesteaded owners of a permanent Florida home. When you became a Florida resident matters:

• Permanent Florida residents as of December 31, 2026 could receive the larger exemption once they qualify for homestead — even if they buy their home later.
• People who become permanent residents after that date would generally start with a $50,000 non-school exemption (inflation-adjusted starting in 2028) and reach the full benefit in their fifth year of homestead.
• Starting in 2030, a county or city could shorten that waiting period for a critical local need by a two-thirds vote of its governing body.

Moving to Florida? If you're planning a move, this rule could make a real difference in your long-term property tax bill. Residency is a legal status, not just a purchase date, so confirm your situation with your county property appraiser. The residency distinction is also subject to the U.S. Constitution, which could affect how it's applied.

See How Much Home You Can Afford in Florida

How Much Could You Save?

Here's a simple example for a homesteaded $400,000 home, using a 1% non-school tax rate and a 0.6% school tax rate:

That's about $1,986 a year — roughly $165 a month — less for the same home. Rates vary widely by county and city, so your numbers will differ.

About $25,000 More Buying Power in This Example

Lower taxes free up room in your monthly budget. Suppose your budget for mortgage, taxes, and insurance is about $2,857 a month:

You could keep the $400,000 purchase and save about $165 a month. Or, at the same monthly budget, the math supports a price about $24,864 higher — roughly $425,000. The larger purchase also takes about $4,973 more down.

Hypothetical illustration, not a rate quote or preapproval: 30-year fixed loan at 7%, 20% down, no mortgage insurance, assessed value equal to price, 1% non-school tax rate, 0.6% school tax rate, a $25,000 school exemption, and $250 monthly insurance. Assumes full eligibility, no other exemptions, HOA dues, or non-ad valorem assessments. Compares the proposed exemption with a frozen 2026 baseline. Taxes rise with the higher price; insurance is held constant. Maintenance and closing costs are extra. Figures are rounded.

Your lender must confirm the tax estimate and your loan qualification — this example isn't an approved purchase limit. The fastest way to see your real number is to check what you qualify for.

Find Out How Much Home You Qualify For

Could Owning Cost About the Same as Renting?

For some households, lower taxes could help close the gap. Suppose comparable rent were $3,000 a month, and add an illustrative $300 monthly maintenance allowance to the $400,000 ownership example:

In this scenario, tax relief brings the monthly cost of owning close to the assumed rent — which could make buying more attractive for someone planning to stay.

The rent is hypothetical, not a Florida market average. This comparison leaves out utilities, renters insurance, closing and selling costs, and what the down payment could earn if invested. Repairs can exceed the allowance. A fair decision also weighs the cash needed upfront and how long you expect to own the home.

Paying rent today? We can compare a real ownership budget — mortgage, taxes, insurance, and dues — against what you pay now.

Check Florida Home Purchase Eligibility

Could Lower Taxes Raise Home Prices?

Possibly. Lower ownership costs can make buying more appealing and let some eligible buyers offer more, which could support demand and prices — especially where homes for sale are limited.

But sellers may capture part of the benefit through higher prices. Research on a different property tax abatement program in Philadelphia found the tax benefit was reflected in sale prices. That suggests a possible market effect; it doesn't predict what will happen in Florida.

The roughly $25,000 in the example above is a financing calculation, not predicted appreciation. Your results still depend on what you pay, your financing, upkeep, local conditions, and resale value — and price increases could absorb some of the affordability benefit.

What Current Homeowners, Landlords, and Second-Home Owners Should Know

• Current homeowners could see lower tax bills once an approved change applies. If your taxes are escrowed, your monthly payment would change after your servicer updates its escrow calculation. Your principal and interest wouldn't change.
• Rentals and second homes wouldn't get the larger homestead exemption. Their assessed value for non-school taxes would instead be capped at 5% annual growth rather than 10% — a limit on assessment growth, not on the total bill. Investors running numbers on a Florida rental can use our Florida DSCR loan calculator.
• Local tax rates could change. Counties and cities could adjust tax rates, fees, or spending in response to lower revenue, and insurance, maintenance, and association dues can change too. Estimate savings for a specific property and year rather than assuming them forever.

Already a homeowner? Our guides to Florida property tax exemptions for seniors and VA disability property tax exemptions cover exemptions you may be able to claim today.

When Would Changes Take Effect?

If voters approve Amendment 3, it takes effect January 1, 2027. According to county property appraiser guidance, the first changes would appear on 2027 TRIM notices and tax bills, and the full $250,000 exemption would begin in 2028. Purchase-price reassessment, existing exemptions, and your individual eligibility would all affect your bill.

Find Out What the Numbers Mean for Your Next Home

The useful question is what your full monthly budget could support. At Next Wave Mortgage, we can compare the specific home, loan, taxes, insurance, association dues, and cash needed to buy — and compare that ownership budget with what you pay in rent today.

Send us a property address and your target monthly budget. Any potential Amendment 3 savings should stay a separate illustration until the rules and your eligibility are confirmed.

Check Florida Home Purchase Eligibility

Sources

Reviewed October 6, 2026. The official constitutional text and ballot summary control over any summary on this page.

• Florida Department of State — Amendment 3 initiative details and ballot summary
• Florida Legislature — Enrolled CS/HJR 1F (constitutional text)
• Pinellas County Property Appraiser — Proposed 2026 Florida Property Tax Amendment 3 FAQs
• Volusia County and Santa Rosa County Property Appraisers — Amendment 3 FAQs
• Florida TaxWatch — Florida Property Tax Resource Center
• Consumer Financial Protection Bureau — escrow statements, and how taxes and insurance affect the price you can afford
• Federal Housing Finance Agency — Working Paper 24-01, Capitalization of Property Tax Incentives: Evidence From Philadelphia
• Fannie Mae — Rent vs. Buy guidance and Selling Guide, Monthly Housing Expense