Florida Amendment 3 Explained: Homestead, Buyers, Myths

Amendment 3 Passed. Here Is What It Actually Does.

Florida’s Amendment 3 passed with about 62% of the vote, just clearing the 60% the state constitution requires. Starting January 1, 2027, the homestead exemption that applies to county, city, and special district taxes jumps from roughly $50,000 to $150,000. In 2028 it rises again to $250,000, and starting in 2029 that amount adjusts for inflation each year. The $25,000 exemption against school taxes stays exactly where it is.

If you own a property that is not your homestead (a rental, a second home, a commercial building), you get something too. The cap on how much your assessed value can rise each year drops from 10% to 5% for the nonschool portion of your bill, also starting January 1, 2027.

What did not change? Save Our Homes still limits annual increases on a homestead’s assessed value to 3% or the change in the Consumer Price Index, whichever is lower. Portability is also unchanged.

And here is the part my phone has been ringing about. If you had not maintained a permanent residence in Florida as of December 31, 2026, you do not get the big exemption right away. You get the $25,000 school exemption and $50,000 against other taxes, and the full exemption kicks in with your fifth year of homestead exemption. The Legislature still has to write the procedures for how this works, and the ballot language says it applies only to the extent the U.S. Constitution allows. Translation: the details are still being written, so stay tuned.

What It Means for St. Pete and Tampa Bay Homeowners

Let’s put real numbers on it. Say your homestead in Old Northeast or Shore Acres has an assessed value of $600,000. Under the old rules, roughly $550,000 of that value was exposed to county and city taxes. In 2027 that drops to about $450,000. In 2028 it drops to about $350,000. Your school taxable value stays around $575,000. Your actual savings will depend on your local millage rates, which brings me to the part nobody puts on the yard signs.

Local governments are going to feel this. Legislative staff estimated local nonschool property tax revenue would fall by about $4.95 billion in the first fiscal year and about $8.78 billion the next. Cities and counties may respond by trimming services, adjusting millage rates, or both. So your 2027 bill will depend partly on Amendment 3 and partly on what St. Petersburg, Pinellas County, Hillsborough County, and your special districts decide to do with their budgets.

Timing matters too. The tax bill you just got this November was calculated under the old rules. Your first bill under the new exemption should arrive in fall 2027.

If you own a rental or a second home, that 5% cap can be a real long term advantage, especially in neighborhoods where values have climbed fast. Before you decide whether to hold, sell, or buy more, it’s worth knowing where your property stands today. A current home valuation is a smart starting point, and if you are weighing a portfolio move, my real estate investment consulting can help you run the numbers with the new cap in mind.

Common Amendment 3 Misconceptions I Keep Hearing

In the week since election night, I have heard some creative interpretations of Amendment 3. Let’s clear up the big ones.

Moving From California or New York? Read This First.

Our phones are ringing with California and New York area codes, and Amendment 3 is the question I hear most right now. So here is the straight talk.

If you move here after December 31, 2026, plan on the smaller exemption for your first four years of homestead. That’s $25,000 against school taxes and $50,000 against everything else, with the full exemption starting in year five. Florida still has no state income tax, and that is often the bigger number for buyers coming from high tax states. But your property tax budget for those first years should be built on the newcomer exemption, not the headline $250,000.

Don’t let a December 31 date push you into a rushed decision. A home in Snell Isle or downtown St. Pete is a long term purchase, and the right house at the right price will matter far more than a few months of timing. Working with an experienced buyer’s agent who knows how assessed value, millage, insurance, and flood risk work on the specific street you’re looking at will save you more than any shortcut.

What to Verify Before You Buy, Sell, or Budget

Amendment 3 makes the property tax picture better for a lot of Floridians, but every property and every buyer is different. Before you make a decision, verify these:

1. The property’s current just value, assessed value, and exemptions on the Pinellas County or Hillsborough County Property Appraiser website.
2. Your estimated tax bill as a new owner, based on market value and your expected exemption, not the seller’s current bill.
3. Your residency timeline and documentation, confirmed with a Florida attorney or tax professional, especially if you are moving from another state.
4. Homestead filing rules. In Florida you typically must own and occupy the home as your permanent residence on January 1 and file by March 1 for that tax year. Confirm the current requirements with your county property appraiser.
5. Local millage rate decisions in 2027, since city and county budget changes can affect your actual savings.
6. Insurance costs and flood zone status for the specific address. Get quotes from a licensed insurance agent and check official flood maps for each property individually.
7. For rentals and second homes, how the 5% cap applies to your specific property, keeping in mind it covers the nonschool portion of the bill.

The Bottom Line on Amendment 3

Amendment 3 is the biggest change to Florida homestead taxes in years. Current homeowners will likely see meaningful savings starting in 2027 and 2028, owners of second homes and rentals get a tighter cap, and newcomers get a five year phase in. The details still being written by the Legislature will matter, and so will local budget decisions.

If you are trying to figure out what this means for your sale, your purchase, or your move to Tampa Bay, let’s talk it through. Schedule a real estate consultation or reach out to me directly. No fluff, just honest local guidance.