Florida voters will decide this November whether to significantly reshape the state’s property tax system.
Florida’s proposed property tax amendment, Constitutional Amendment 3, requires 60 percent voter approval to pass. If approved, it would expand the homestead exemption, lower the assessment cap on non-homestead property and place new limits on how local governments can spend property tax revenue.
Florida Realtors recently voted to support Amendment 3. Let’s outline the proposed changes and some important details voters should understand before casting their ballot.
A bigger exemption phased in
For qualifying Florida residents, the homestead exemption for non-school property taxes would increase to $150,000 in 2027 and $250,000 in 2028, with annual inflation adjustments beginning in 2029.
The amendment also directs the legislature to establish a uniform process for reducing homestead taxable value further over time, potentially up to full elimination. However, that is a directive — not a guarantee — and would require future legislative action.
To put the potential savings into perspective, using the City of Miami’s 2025 non-school millage rates and holding those rates constant, increasing the homestead exemption from the current $51,411 to $150,000 would represent approximately $1,317 in annual property tax savings. At $250,000, the estimated annual savings would increase to approximately $2,652.
Actual savings would vary based on the property’s assessed value, applicable millage rates, taxing jurisdictions and other factors.
Florida’s proposed property tax amendment: Who benefits
The amendment would essentially create three groups of homeowners based on Florida residency:
- Existing Florida residents: Those who maintained permanent residency in Florida as of Dec. 31, 2026, would qualify for the expanded homestead exemption beginning in 2027.
- New Florida residents: People who establish Florida residency on or after Jan. 1, 2027, would initially receive the current exemption but must wait five years before qualifying for the larger one. Beginning in 2030, local governments could shorten that waiting period if they identify a critical local need.
- A third group: Floridians who were already permanent residents of the state by Dec. 31, 2026, but establish their first homestead after the amendment takes effect — raises an important implementation question. While legislative analyses anticipate that these residents would qualify for the expanded exemption, the statutory language leaves questions about implementation. The legislature will need to address this issue, providing an opportunity for Realtor advocacy.
Why school taxes remain
One of the biggest misconceptions is that the larger exemption applies to an entire property tax bill. It does not.
The expanded exemption applies to most local levies, but not to school district taxes. Because a Florida property tax bill combines county, municipal, school district and special district taxes, homeowners could receive a significantly larger exemption while seeing little change in the school tax portion.
Changes for 2nd homes, rentals and commercial property
The amendment would reduce the annual assessment cap on non-homestead property, including second homes, rental properties and commercial real estate, from 10 percent to 5 percent, providing greater protection from rapidly increasing assessed values.
There is another important consideration. As the expanded homestead exemption reduces the taxable value of homestead properties, the rolled-back millage rate may increase to account for the reduction in the tax base and generate approximately the same property tax revenue as the previous year.
Under SB 4F, local governments can adopt the rolled-back rate by a simple majority vote, while rates above the rolled-back rate require a higher voting threshold. This could disproportionately impact second homes, rental properties and commercial real estate because they would not receive the expanded homestead exemption but would be subject to the same millage rates. However, those properties would also benefit from the lower 5 percent assessment cap in Amendment 3.
Limits on how revenue can be spent
The amendment would also restrict local governments to spending remaining ad valorem tax revenue on seven categories, including public safety, education, infrastructure, natural resource projects, debt obligations, employee retiree benefits and general government operations.
Existing voter-approved bonds and debt obligations are collected through a separate levy and would not be impacted, as the millage rate would adjust to ensure collection for those voter-approved obligations.
Why understanding the mechanics matters
Florida’s property tax system has evolved through layers of exemptions, assessment caps and portability rules. Amendment 3 would add another layer, making it important for homeowners to understand how the proposal would apply to their individual circumstances.
Miami Realtors + RWorld has hosted educational sessions and developed resources to help homeowners, Realtors and policymakers understand Florida’s current property tax system and the proposed changes.
Housing affordability remains a significant concern for Realtors and the homeowners and buyers they serve. Florida Realtors voted to support Amendment 3 because the organization believes it would provide meaningful property tax relief while supporting attainable homeownership.
As voters consider the amendment in November, understanding both the potential savings and the mechanics behind those savings will be important.
The views and opinions expressed here are those of the contributor and separate from the Inman newsroom.
Danielle Blake is Chief of Residential and Advocacy for Miami Realtors + RWorld. Get connected on Instagram and LinkedIn.
